Companies must carefully consider whether or not it makes sense to relocate back
According to the authors, whether such a shift actually occurs depends on various factors. These include the actual costs of relocation, the availability of labor, the complexity and interdependence of the existing supply chains as well as political support for domestic production of certain safety-relevant goods such as pharmaceuticals.
The digitization of supply chains, the flexibilization of production at several locations and the increase in stocks could provide more resilience.
Business consultant Berryls sees a change in the chains rather critically
However, other management consultants such as Berryls see switching supply chains over because of Corona to reduce dependency on China as not making much sense. Many components, for example for the auto industry, come from Europe anyway. The companies, however, need a “Plan B”: no re-nationalization, but more diversification in terms of suppliers.
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