Relocations and their impact on the supply chain

In recent times, we have witnessed a significant evolution in the way companies produce, operate and make strategic supply chain decisions. One trend that has gained momentum is relocation and a commitment to local production.

Relocation refers to the relocation of a company’s production and operations from one country to another. Supply chain problems caused by the Covid-19 pandemic, or the recent war between Russia and Ukraine, have accelerated this phenomenon globally, impacting the logistics industry. In this context, companies are protecting themselves from supply chain disruptions due to the uncertain future of geopolitics by opting for closer manufacturing.

Stock Logistic, an expert logistics operator in international transport, has a team of professionals who have been able to adapt to any circumstance of transformation within the field of logistics. The objective is to ensure the efficient delivery of goods to its customers, whether local, continental or intercontinental productions.

Less dependence and more ethical production

Change in the industry has been rapid. In just one year, the number of companies that have moved their production and suppliers to home or nearby markets has doubled compared to 2021, according to the transport and logistics news portal Puertos y Más. There are several reasons for this phenomenon:

Reduced costs and risk of outages.
Reduced dependence on major powers.
Increasing consumer demand for local products.
More ethical production.
Generating employment in small towns and reducing the carbon footprint associated with long-distance transport of goods.

  • Reduced costs and risk of outages.
  • Reduced dependence on major powers.
  • Increasing consumer demand for local products.
  • More ethical production.
  • Generating employment in small towns and reducing the carbon footprint associated with long-distance transport of goods.

Today, when the supply chain is evolving to adapt to new economic and social situations, it is essential to have comprehensive visibility resources for the entire process. At Stock Logistic, the transparency and adaptability of all its logistics operations allows them to offer effective and tailor-made solutions for each type of industry.

Effects on the supply chain

Relocation and the focus on local production have a significant impact on the supply chain. First, it implies changes in the network of suppliers and business partners. Companies need to find reliable local suppliers that can meet their supply needs. In addition, it may require investments in new facilities and equipment, which implies upfront costs and possible adjustments in distribution logistics.

Another important aspect is the effect on the workforce. Relocation can mean the creation of new jobs in the destination location, as well as job reductions, which can have social and economic consequences at the global level.Otro aspecto importante es el efecto en la fuerza laboral.