Businesses reeling from the coronavirus pandemic must retool their supply chains, building in new backstops and inventory buffers in the face of global economic uncertainty, according to a new report.
Companies “will have a new focus on resilience,” said Michael Zimmerman, a partner at consulting firm A.T. Kearney Inc. and a lead author of the annual “State of Logistics Report,” which was released Tuesday by the Council of Supply Chain Management Professionals.
“That means having more options. Multishoring and higher inventories are two likely outcomes,” Mr. Zimmerman said.
The report is an annual assessment of how effective U.S. companies, including manufacturers, retailers and their suppliers, have been in managing the costs and efficiency of their supply chains.
By the report’s measures, which include inventory-carrying costs and transportation spending, corporate supply chains grew leaner in 2019.
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