There’s sufficient motivation for companies to remove risk from their supply chains.
One way to do it is to shrink it.
And one way to do that is to bring capabilities closer to home e.g. nearshoring.
But, that’s not the only way to go and it might actually be prohibitive.
There are other approaches.
Here’s four ways to significantly shrink your supply chain…
- Consolidation: Reducing the overall number of suppliers.
- Proximity: Bringing suppliers physically closer (e.g. nearshoring)
- Operational: Acquiring capabilities, bringing them into the organizational fold.
- Relational: Closing the relationship gap between brands and suppliers.
Coincidentally, the fourth is the hardest to do but is essentially mandatory if you do any one of the first three.
