GOODQUESTION
significant investments to mitigate the inherent risks, supply chain globalization is here to stay.
But It’s Complicated It’s definitely hitting some speed bumps and in the long-term picture, there are elements that are going away. Chip manufacturers have shown it is not viable to have all manufacturing located with a few sources. And we are seeing that shipping being controlled in one direction is problematic both on the shipping and receiving sides. Ultimately manufacturing is going to pick up around the world but products like steel, chips, and other complex products will take time to come online. –Muffie Alejandro President, Jan-Al Cases Yes, to a degree. It is a process that will play out incrementally, over time. However, there are pressures to diminish some of these dependencies that weren’t there a few years ago, including reducing reliance on lengthy inbound transportation modes that are susceptible to price spikes and capacity constraints, and, of course, geopolitical risks. –Mark Wheeler Director, Supply Chain Solutions, Zebra Technologies hitting some But
–David Spencer Director of Business Intelligence Arrive Logistics
NOT AT A MEANINGFUL SCALE. We may be in a moment of pause and tectonic shift, like taris growing, but globalization is a Pandora’s box that won’t close unless global economies shrink exponentially. Even with aggressive reshoring/nearshoring initiatives, it would take decades to displace China as the world’s manufacturer.
–Ryan Lynch SVP Marketing, OnPoint Group
MANY COMPANIES HAVE ADDED REDUNDANCIES like nearshoring to minimize their supply chain risk. However, new supply chain technological innovations being developed around the world will continue to spur globalization.
NO. It would be naive to suggest we’ve seen a complete pivot given the infrastructure that’s already in place and the economic benefits from globalization. Additionally, hopefully there will be a de-escalation in the current geopolitical turmoil and the broader positivity of globalization will persist. –Geoff Kelley President & COO Transportation Insight & NTG NO. As supply chains adapt to market conditions, whether punitive trade barriers, geopolitical conflicts, weather events, or logistics shocks, trade flows will shift, but globalization always wins because economics always wins.
development, and labor availability are critical to success and foreign governments will look to capitalize on these opportunities. The next black swan is unclear but it is clear that globalization is here to stay. –Glenn Koepke
–Felix Vicknair VP, Supply Chain Solutions Kenco Group
SUPPLY CHAIN GLOBALIZATION IS IN RESET, not retreat. Shippers are reassessing the fundamentals of their supply chain strategies. Whether their manufacturing is situated in the United States or abroad, shippers are looking to tighten their networks to build resilience and reassert control.
General Manager, Network Collaboration, FourKites
GLOBALIZATION IS IN TRANSITION. We are seeing companies evaluating dierent operating models and how these could be impacted by varied factors—taris, regulatory changes, geopolitics, etc. A shift to reorient supply chains from a globalized model would be significant and would require huge investments. –Alex Pradhan Product Strategy Leader John Galt Solutions
–JJ Schickel CEO, Omni Logistics
YES AND NO. When the pandemic started, many columnists wrote that everyone will be doing local and regional sourcing. What happened? People stockpiled inventory. You can’t shift entire supply chains overnight. What many organizations are moving toward is multi-sourcing strategies to build resilience. –Gordon Donovan
–Tom Nightingale CEO, AFS Logistics
Have a great answer to a good question? Be sure to participate next month. We want to know: What’s your best customer service tip for supply chain stakeholders? We’ll publish some answers. Tell us at editorial@inboundlogistics.com or tweet us @ILMAGAZINE #ILGOODQUESTION
Director of Market Research for Procurement and External Workforce, SAP
NO. While sentiment has shifted on globalization, networks are too vast to localize. Raw materials, research and
November 2022 • Inbound Logistics 9
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