.
| • | Limited stock. This holiday season’s bargain hunters might be disappointed. Betting on strong demand and limited inventory because of supply-chain disruptions and shipping delays, many US merchants aren’t offering up the usual steep discounts. This may seem risky, especially as consumers grapple with rising prices for basics. But inventory is running out fast, suggesting that time is not on the consumer’s side. As early as October, online shoppers in the US waded through two billion out-of-stock notifications. [Bloomberg] | | | | • | Supply-chain makeovers. The COVID-19 pandemic wreaked havoc on supply chains a year and a half ago—and the chaos continues. Congested ports, trucker shortages, and rail-yard delays are choking global commerce. In response, many companies are shifting from the temporary supply-chain solutions they had instituted to more lasting overhauls. These include regionalizing supply networks and even redesigning products to eliminate dependence on vulnerable parts and materials. [WaPo] | | | | • | Why it matters. The pandemic laid bare the underlying weaknesses in global supply chains. However, progress toward more localized, flexible supply-chain structures has been slower than anticipated. For instance, a McKinsey survey of supply-chain leaders reveals that only 22% of automotive, aerospace, and defense players have regionalized production, even though more than three-quarters of them prioritized this approach in their answers to the previous year’s survey. | | | | • | An inflection point. Supply chains have shored up resilience and risk management since the pandemic began. But now’s the time to build on those gains. Analysis of the survey results shows that despite the impact of supply-chain shocks over the past two years, only 39% of companies are investing in tools to monitor risks and disruptions—and a shockingly low 1% have sufficient talent with digital skills. Read the article to learn how executives expect their supply chains to evolve in the coming months. | | | | — Edited by Rama Ramaswami | | This email contains information about McKinsey’s research, insights, services, or events. By opening our emails or clicking on links, you agree to our use of cookies and web tracking technology. For more information on how we use and protect your information, please review our privacy policy. | | You received this email because you subscribed to the On Point newsletter. | | | | Copyright © 2021 | McKinsey & Company, 3 World Trade Center, 175 Greenwich Street, New York, NY 10007 | | | |
No comments:
Post a Comment