Nearly 96% of firms are making changes to supply chains – DP World

Nearly 96% of firms are making changes to supply chains – DP World

As many as 96% of companies are incorporating changes to their supply chains due to geopolitical events, cost reduction and disruption risks, according to a study commissioned by UAE-based ports operator DP World.

In just a year, the number of companies shifting their manufacturing and suppliers – either to their home markets or nearby – has doubled compared to 2021, stated the Economist Impact-led “Trade in Transition 2023” report, which was released at the World Economic Forum annual meeting in Davos.

“By bringing production closer to the final customer, firms can reduce the number of touch points involved in the supply chain and build greater resilience into the flow of cargo around the world,” said DP World Group Chairman and CEO Sultan Ahmed Bin Sulayem.

The next challenge that will alter these trends is an economic slowdown looming over regional markets, he said, adding agility, real-time visibility and end-to-end supply chain capabilities will be critical to ensuring companies find new efficiencies in an increasingly challenging environment.

According to the report, 27% of companies said they were reducing the length of their supply chains due to geopolitical events such as the war in Ukraine, while another 33% plan to expand into more stable and transparent