May 16, 2024

How the Nearshoring Revolution is Reshaping the Global Supply Chain


There’s no “business as usual” in the global supply chain, partly because the nearshoring trend is reshaping trade routes, displacing manufacturing hubs, and changing how organizations create and transport goods and products. This edition’s look at the headlines includes the rise of Asia-to-Mexico routes to accommodate nearshoring, the latest on supply chain disruptions, and survey data on how organizations are responding to them.

Continue reading for all the details on what’s going on around the supply chain and logistics landscape, and contact the Cargologik team if you’re looking for the right technology to support your business in today’s dynamic landscape.

Nearshoring and the Growing Importance of Asia-to-Mexico Routes

Global carriers are targeting Asia-to-Mexico routes as growth opportunities. Chinese companies have started investing in Mexico, and carriers like Cosco, MSC, and CMA CGM have responded by launching services that connect the two countries.

Experts suggest that American companies' emphasis on nearshoring has turned Mexico into a hotspot for shipping and trade. As nearshoring reshapes the global supply chain and turns some emerging markets into essential manufacturing hubs, BCOs and LSPs will need technology to help them orchestrate their supply chains and keep up amid this massive shift.

Replacing Fragmentation With Integrated Logistics Solutions

New survey data suggest the importance of “integrated logistics solutions” is growing. The legacy logistics model is fragmented, but that model no longer works in an increasingly complex landscape. Now, organizations are recognizing the need for “strategic partners who are deeply integrated into their operations and committed to addressing comprehensive logistics challenges.” This modern approach could result in greater operational efficiency while helping shippers create better customer experiences.

The Cargologik platform is designed to update fragmented supply chain operations by creating orchestration among all parties. As organizations seek operational efficiency and a higher degree of integration, a single-source-of-truth platform for everything from document management to visibility can be invaluable.

How Today’s Supply Chain Affects Small and Midsized Businesses

The supply chain landscape is rife with challenges right now, which are especially difficult for small and midsized businesses to overcome. A new report indicates that disruptions, inflation, talent shortages, and cybersecurity issues are among the greatest concerns for SMBs right now.

The survey also found that at least half of small and midsized businesses in the U.S., U.K., and France are allocating 6% or more of their budgets to supply chain technology spending. In Australia, 51% of SMBs reported spending less than 5% of their budgets on supply chain tech.

The Focus on Scenario Planning Loses Steam

Another new survey suggests that supply chain scenario planning is still important to organizations worldwide, especially as they try to counteract cyberattacks, labor shortages, the blocking of key supply chain channels, and fluctuating oil prices.

That said, the same survey indicates that “planning fatigue” is starting to set in. The survey revealed a 14% decline in how seriously organizations are taking scenario planning this year compared to last year. A large majority of respondents also noted that their organizations are “basing planning decisions on assumptions rather than specific data,” which is concerning in its own right.

This Week in Supply Chain Disruptions

Disruptions have plagued the global supply chain in 2024, and Supply Chain Brain notes that these disruptions have become “chronic and inevitable.” The crisis in the Red Sea alone has created a nearly 5-fold increase in the cost of Asia-to-Europe shipping, an issue that FTI Consulting investigates in depth.

The Loadstar reports on increasing port congestion in the West Mediterranean Sea as if the Red Sea weren't enough. This congestion results from transshipment boxes clogging ports and threatening to create a capacity problem. These disruptions naturally have consequences, including slow economic growth in places like the U.K. Amid these disruptions and the widespread fallout associated with them, Supply & Demand Chain Executive writes about how to prepare for the cost of supply chain disruption.

You Can’t Navigate Today’s Supply Chain Without Modern Technology

The global supply chain has become far too complex for organizations to continue relying on legacy technology and fragmented approaches to operations. At Cargologik, we offer the industry-leading supply chain orchestration platform, which can serve as your single source of truth for connecting stakeholders and navigating disruptions.

Ready to upgrade your supply chain tech for the modern age? Get in touch to learn what Cargologik can do for your business.

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