Resilience in supply chains remains vital but may prove too expensive for many firms, according to a new S&P Global Market Intelligence report released. The newly published 2024 Supply Chain Outlook: Delivering resilience in adversity is part of S&P Global Market Intelligence’s Big Picture 2024 Outlook Report series.
In the new report, S&P Global Market Intelligence’s supply chain analysts highlighted the continuing need to build supply chain resilience in 2024 is clashing with reduced corporate profitability. Firms may rely on technology investments and organizational upgrades rather than conservative inventory strategies or diversification of sourcing.
“Global supply chains won’t have any respite from a decade of disruptions in 2024, making resilience-building more vital than ever. However, falling profitability and rising interest rates have meant costly just-in-case inventory strategies and multi-sourcing approaches are not in favor, though reshoring is. The good news is that technology investments and organizational enhancements can help build resilience,” said Chris Rogers, Head of Supply Chain Research at S&P Global Market Intelligence.
Key highlights from the report include:
Global supply chains have largely normalized in 2023 after years of disruptions. Risks in 2024 range from trade protectionism and conflict to water stress and labor strikes. The need for resilience is well established, but the willingness and ability to invest in it through higher inventories and diversified sourcing it is not.