80% of global CPR companies diversify to tackle delivery woes

Particularly noteworthy is the rise of ‘friend-shoring’, a practice focusing on politically and economically allied countries, adopted by 83 per cent of organisations, according to a report titled ‘Illuminating the path: Building resilient and efficient supply chains in the consumer products and retail industry’ by Capgemini Research Institute.

This shift is set against a backdrop of geopolitical issues that 77 per cent of CPR organisations say are affecting supply chain costs and efficiency. Consequently, nearshoring and domestic sourcing are gaining prominence, with a projected decline in offshore procurement by 7 per cent by 2025, while nearshoring and domestic sourcing are expected to rise by 4 and 3 per cent, respectively.

The report also highlights the anticipation of challenges in the 2023 holiday season, including stockouts and import delays. To address these, CPR companies are prioritising cost efficiency through improved planning, process improvement, and automation. Data management, cloud computing, and automation are at the forefront of technologies being adopted for cost savings and revenue generation.

Moreover, sustainability remains a crucial focus, with 75 per cent of CPR organisations making concerted efforts in this direction. Despite this, the report indicates a need for increased commitment, as less than half of the companies have effectively deployed sustainability initiatives.

ALCHEMPro News Desk (NB)