SUBMISSION SUCCESSFUL

Progressively leaner supply chains have sped up manufacturing and reduced delivery costs around the world, but they have also demonstrated their increased fragility in the face of uncontrollable factors. Sourcing from many vendors along a supply chain, from raw materials to last-mile delivery, can successfully limit risk while increasing flexibility and competitiveness for global logistics players.

Important Developments and Implications

Multisourcing is becoming more appealing to logistics players as force majeure events such as unanticipated trade tariffs, hurricanes, labor strikes, and pandemics appear to be on the rise. Repeated, unpredictability in supply chain breakdowns has called into question the concept of a stable, traditional global supply chain. As an economic decision, established economic powerhouses offshored largely manufacturing employment to nations with cheaper labor. This pattern is gradually evolving into a more sophisticated web, with commodities and services no longer coming only from the “normal” countries.

Many variables enable logistics businesses to pursue multisourcing more reasonably, such as increased performance and costs in automation and computers, as well as growing labor costs in previously cheaper countries, resulting in production becoming more expensive. Furthermore, governments around the world are taking a more active role in attracting international enterprises and investment while encouraging domestic entrepreneurship and healthy competition. Regardless of enabling conditions, the key reason for logistics companies seeking multisourcing is to strengthen the supply chain’s resilience and flexibility.