From Globalisation to Glocalisation : A GMIS and PwC report
The joint report by GMIS and PwC offers a global perspective on the transformations undergone by global supply chains under the influence of the COVID-19 pandemic. By analyzing the experiences of India, the US, and Germany among others the report argues that the shift toward regionalized footprints will shape the post-pandemic future of supply chains and operations.
The report The journey from Globalisation to Glocalisation. How COVID-19 has accelerated the shift to more local and flexible operations analyzes how lockdowns prompted corporations to revise the current structure of global supply chains and to develop alternate sourcing options.
Many companies have found in the localization of operations the main answer to supply chain risk mitigation. This shift towards agile and multi-footprint global operations is what the report defines as glocalisation, a process which “enable companies to stay closer to suppliers and customers while reducing their operating risks”.
Overall, the report identifies three main drivers behind the glocalisation phenomenon:
- regionalization of corporate footprints;
- increased use of robotics and growing reliance on automation;
- the changing cost model for production and sourcing which translates into more integrated supply chains.
The data provided by the case studies of GMIS and PWC shows that the development of local supply chains within regional set-ups, as well as the implementation of multi-sourcing strategies, will be a key component of the industrial plans of developed and developing countries alike.
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