Geopolitical shifts have a direct impact on the smoothness of international trade.
It’s important for the companies affected to conduct assessments of these impacts, alongside (sometimes anticipating) the fluctuations in the global environment.
Here are a few location concepts:
▲ Onshore - Manufacturing/vendors operate within the same country, although they may be located in a different city or state.
▲ Nearshore - Manufacturing/vendors are located in neighbouring countries.
▲ Offshore - Manufacturing/vendors are outside the company’s country.
Within companies operating on international supply chains, the location(s) of manufacturing or major suppliers influence in a BIG way on:
• Manufacturing cost
• Procurement/material costs
• Logistics costs
• Labor costs
• Communication/collaboration costs
• Skills costs
• Lead time
• Management costs
• Vulnerability
• Risk avoidance/accumulation
• Opportunities
How do you plan, to build up geopolitical resilience for the upcoming years of business development?
If you would like to discuss this further, please don’t hesitate to reach out. 💬
Video by Ben Graves on Pexels
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