Rebalancing the global supply chain has been a topic of the Annual Third-Party Logistics Study for years, originally highlighting the potential for increased nearshoring and the shifting of inventory due to disruptions. However, today's supply chain operates within an even more dynamic and uncertain environment. Port congestion, global conflicts and labor shortages have necessitated the need for supply chain resiliency, which has now become a cornerstone principle.
Last year, an overwhelming majority of shippers (83%) reported experiencing disruption in the supply of key materials. This year, respondents were asked what action shippers have taken to rebalance their inventory to alleviate such disruptions, with 42% reporting they have already adjusted their inventory levels, while 29% have created a plan and begun the process to adjust inventory levels.
Last year, 83% of shippers also stated they planned on adjusting their sources of supply towards more regional and local/domestic sources. This year, 38% of shippers reported they have already adjusted their sources of supply, while another 31% have created a plan and begun the process to adjust sources of supply. Overall, 87% of shippers are making rebalancing adjustments, in line with the 83% referenced from last year's study.
Similarly, roughly 80% of shippers also reported that they are rebalancing production locations to move towards more regional/domestic networks. Of these shippers, 26% stated they have already adjusted production locations and 28% have created a plan and begun the process to adjust production locations.