Is the end of globalization imminent?

Supply chain management study on corona predicts shift in procurement markets

Herzogenrath/Aachen, May 12, 2020 – The new Abels & Kemmer study on the impact of coronavirus on supply chain management predicts significant changes in supplier structures. All in all, the globalization trend in procurement is expected to slow down considerably or even decline significantly. The study reveals a clear trend ‘back to Europe’. This effect is exacerbated by China’s increasing economic aggression, the erratic behavior of the US federal government and the UK’s withdrawal from the EU, all of which must expect declining procurement volumes from Europe. Around two thirds of the 250 German company managers and supply chain experts surveyed expect European and national procurement markets to become increasingly important. One in six even anticipates a significant increase in procurement in Europe and their home country. Does this mean the end of globalization and will the UK be able to cope with leaving the EU under these circumstances? The AWF study is dedicated to this and many other questions and highlights the most important current trends in supply chain management, which has been facing major business challenges since the coronavirus pandemic. The 40-page document is available to download free of charge at www.ak-online.de/die-neuen-normalitaeten-im-supply-chain-management.

The study is divided into two sections. The first section takes a look into the near future. They were asked about the biggest challenges in ramping up production and the supply chain in the coming weeks. The second section asks what the supply chain world will look like after the coronavirus crisis. Is the supply chain world a different place after the coronavirus crisis? What long-term changes in supply chain management do respondents think will result from the coronavirus crisis?

Background to the study

In mid-April 2020, the Arbeitsgemeinschaft für wirtschaftliche Fertigung (Working Group for Economic Manufacturing), together with supply chain management consultants Abels & Kemmner, held three online workshops with representatives from 23 member companies. In these workshops, expectations and hypotheses on the development of supply chain management and operations on the way out of the corona crisis and after the corona crisis were compiled. Based on these three workshops, Abels & Kemmner conducted a survey from April 20 to April 24, 2020 to obtain the broadest possible range of opinions on the expectations and hypotheses put forward. The target group consisted of people from production and trading companies who work in the areas of production, logistics, supply chain management, purchasing and work preparation, as well as a smaller number of consultants who deal with logistics, supply chain management and lean management. 250 people took part in the survey. The results of these surveys are presented and interpreted in the now completed study.

About Abels & Kemmner GmbH

Abels & Kemmner is known to the public above all as a specialist in inventory reduction and delivery capability. Goals that A&K realizes quickly and sustainably using special simulation tools. Abels & Kemmner Gesellschaft für Unternehmensberatung mbH was founded in 1993 as a spin-off of the Research Institute for Rationalization at RWTH Aachen University and focuses on streamlining value chains (supply chain optimization) for production and trading companies. A&K’s SCM specialists optimize order processing and logistics from suppliers to customers and from product range streamlining to the selection of suitable planning methods and parameters. Typical for A&K is the close link between organizational and ERP-side implementation of the developed solutions. A&K’s clients include TOP100 performers in the German SME and large industrial sectors. Supply chain concepts that A&K has developed with its customers have won several best practice awards.

Released for printing. In the event of publication, please send a specimen copy to the contact addresses below.

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Prof. Dr. Andreas Kemmner

Prof. Dr. Andreas Kemmner

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