TAKEAWAYS
PROXIMITY RULES
THE PROXIMITY TIMELINE Executives are prioritizing immediate strategic shoring actions 1%
While global sourcing has been an accepted business strategy for several decades now, long and globalized supply chains have proven vulnerable to disruption. As a result, proximity to the U.S. market is emerging as a primary value driver in supply chain strategy, according to a new KPMG report, The Proximity Premium . With growing geopolitical and economic uncertainties, executives say that speed-to-market and supply chain resilience have become priorities for U.S.- based companies. The survey, which polled 250 leaders from businesses with at least $1 billion in annual revenue, details how U.S. companies are leveraging proximity for resilience in supply chains. Here are some key findings: Nearshoring Gains Favor: • 73% of surveyed executives report improved supply chain efficiency through strategic shoring. • Companies are concentrating supply chain locations within the Americas, projecting a 16% increase in U.S.-focused supply chains. Shift in Strategic Priorities: • 81% expect the majority of their U.S.-serving supply chains to operate within the Americas after strategic shifts. • 66% of executives cite political and economic uncertainties as major factors driving supply chain reevaluation. Evolving Goals: • Flexibility (27%), speed (28%), and sustainability (27%) have gained importance, reflecting a shift from cost-focused strategies, which decreased from 37% in 2022 to 33% in 2024.
23%
43%
23%
Source: KPMG
A leading business priority for next 1-2 years A major business priority this year A business consideration over next 1-5 years Under discussion but not a priority
CEOs CLOCK TIME ON SCM Will you spend more or less time on supply chain-related topics compared to last year?
With a general consensus that the operating environment over the next 12 months will continue to be challenging for businesses, leaders are being strategic about where they focus their time and efforts. One area rising to the top is supply chain management, according a new report from Proxima. In its Supply Chain Barometer , 3,000 CEOs from the United States, U.K., and Europe share insights on the challenges and priorities ahead. It’s clear that supply chain is cemented in the C-suite agenda for the foreseeable future: A striking 96% of CEOs are set to spend the same (41%) or more (55%) time on supply chain-related topics this year ( see chart ). Just 4% of CEOs foresee the amount of time spent on supply chain-related topics decreasing in the year ahead. Among the 55% of CEOs spending more time on supply chain issues, the majority anticipate an increase of up to 20%, equating to as much as one day a week more. Figures were highest among CEOs within the private equity (47%), media and entertainment (45%), and leisure and hospitality (43%) sectors. CEOs planning to spend an additional 10% or more of their time on supply chain-related topics were greatest within the industries of communications and high-tech (76%), health and pharmaceuticals (72%), and construction (70%), reflecting the complexities involved in emerging high-value supply chains.
4%
41%
55%
More
The same
Less
Source: Proxima
18 Inbound Logistics • November 2024
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