New frontier: Adapting after monumental supply chain disruptions
Regionalized production has many competitive benefits over centralization, including less currency risk, reduced impact of geopolitical issues, and the ability to alter manufacturing capacity in various locations, depending on given situations.
With a centralized approach to sourcing, interruptions can affect the entire production and supply chain, impacting sales, customers, and even a company’s brand image. This played out on a global scale with microchip production issues in the automotive industry over the last few years. As automakers learned, putting all one’s eggs in one basket can be potentially disastrous — especially if the basket breaks.