How nearshoring protects against supply bottlenecks

Corona pandemic, chip shortage and now the war in Ukraine. External shocks are causing supply bottlenecks in many sectors. In response, companies are increasing the number of their suppliers – or bringing production back to their home region.

[…]

Reduce the probability of failures

In many cases, relocation at any price is not even possible, as Prof. Götz-Andreas Kemmner, Managing Partner of Abels und Kemmner Gesellschaft für Unternehmensberatung, reports: “For certain technologies and product clusters, the basic infrastructure is now also lacking in Europe, so that industries would have to be relocated back and not just individual goods.” Basically, he observes that the procurement of a product is spread across several suppliers and regions.

This is an excerpt from the recently published article on the Creditreform magazine website. You can find the full article here:https://creditreform-magazin.de/unternehmen/die-neuordnung-der-globalisierung/

Picture of Prof. Dr. Andreas Kemmner

Prof. Dr. Andreas Kemmner