As Jagjit Singh Srai, Director of Research and Head of the Centre for International Manufacturing at the University of Cambridge’s Institute for Manufacturing explains, in the wake of trade conflicts, Brexit and the COVID-19 pandemic, the vulnerabilities of global supply chains have become glaringly apparent.
There are no short-term fixes to manufacturing supply chain challenges, which means that ‘future-proofing’ is crucial. Future-proofing means anticipating unexpected disruptions, embracing advanced manufacturing and digital technologies, and factoring in geopolitical dynamics and sustainability.
As Jagjit explains, there have been significant shifts in global supply chains, and he has stressed the need for forward-thinking strategies, and advocated establishing resilient supply chains through collaborative efforts between academia and industry.
What is currently impacting global supply chains, and how can we ensure that supply chains are prepared for the future?
The imperative for future-proofing has emerged from many organisations’ attempts to address recent waves of supply chain disruptions through sub-optimal short-term responses, recognising the need for a more fundamental rethink of their supply chains.
Before COVID, there were various trade tensions between the US and China, as well as discussions about Brexit in the UK. Organisations tended to react quickly to each of these individual disruptions. But post-pandemic, these waves of disruptions have compounded with one another and have since been exacerbated by the Russia–Ukraine and Israel–Gaza conflicts.
In response to these challenges, organisations have had to think beyond quick fixes. The short-term approach has often led to carrying extra inventory and safety stock, which can be costly and result in having the wrong items in the wrong place.
And as organisations start to consider medium-term resilience strategies, such as finding alternative suppliers through second sourcing, the supply chain can unintentionally become even more complicated than it already is.
In contrast to these quick fixes, future-proofing supply chains necessitates adapting them to withstand unpredictable and compound disruptions in the long-term. These disruptions often stem from external factors such as geopolitical impacts on trade, or the purposeful adoption of technology, such as in digital technologies and manufacturing processes that can change economies of scale, manufacturing footprint and sustainability performance.
Future-proofing means considering a wide range of shocks, such as market volatility, technology disruptions, cyber risks and climate change, all of which affect how supply chains will be designed in the future. As we enter a more uncertain era, we must rethink our strategies to enhance service levels for more time-sensitive and resilient markets (particularly for critical products such as food and medicines) that require planning not just for the next few quarters but looking much further ahead, perhaps even beyond 2030.
How can manufacturers prepare for a new era of supply chains?
First, it is important to understand the factors that need to be incorporated into the design of future supply chains.
This includes considering a broader set of factors; cost yes, but also responsiveness, resilience (for example, security of supply to critical raw materials and digital infrastructure, including cyber security) and the impact of geopolitics on trade. Some options to consider are more regional manufacturing and/or trust shoring in parts of the world where the reliability of supply is likely to be greater and less vulnerable to geopolitical technology related changes. Also in our considerations should be how new advanced manufacturing technologies can enable smaller scale production closer to the market, resulting in faster and more efficient service.
These are examples where manufacturers need to embrace external factors, technological changes and perhaps new performance metrics that include climate related performance or social measures, such as ensuring ethical supply chains.
How are companies successfully adapting their supply chains to become more resilient and sustainable?
One of the key approaches that many multinational companies have taken is to shift from a globalised supply chain model to a more regionalised one. This move towards regionalisation isn’t new, but it has gained greater traction in recent years.
Others have considered implementing a more multi-stage, decoupled supply chain, with feeder plants for efficient production of core components and separate finishing plants located closer to the markets they serve. This allows for responsiveness and proximity to the market while preserving economies of scale of key components. It requires us to rethink product design and, in this example, adopt a more modular approach to production. So, reconfiguring both the production process and the supply chain is essential.
How does your work and research impact practical advancements in manufacturing management?
Over the last 25 years, the Centre for International Manufacturing at the Institute for Manufacturing has developed expertise in manufacturing footprint design, as well as supply network design. These are strategic processes, frameworks and tools that help organisations explore different configurations and evaluate how these configurations perform against various performance metrics. We help organisations think about the trade-offs, such as balancing service levels and costs, responsiveness and cost, and the increasingly important consideration of achieving Scope 3 net zero emissions within alternative supply chain configurations.
We’ve also been developing strategies and tools to help firms with their digital supply chain transformations. Our work has led to the creation of a Digital Supply Chain Consortium, facilitating knowledge exchange between our centre and industrial partners.
However, we don’t have exclusivity on knowledge in this space. We recognise that our industry partners will implement some of the best practices. The exchange of knowledge on international manufacturing supply chains between industry and academia is in our centre’s DNA.
Our efforts in supply chain strategy have influenced major multinational companies, many of which are leaders in supply chain expertise rankings. We have also engaged with industrial partners through our frameworks and tools to develop tailored manufacturing supply chain strategies.
What is the Cambridge International Supply Chain Symposium?
The symposium is focused on modern manufacturing supply chains. What makes it unique is the presence of prominent business figures, industrialists and leading academics who share their approaches and experiences in this field.
In light of significant disruptions, such as trade conflicts, Brexit and COVID-19, it is clear that organisations can no longer afford to be reactive. Future-proofing supply chains now involves preparing for unforeseen disruptions, embracing advanced manufacturing and digital technologies, and considering geopolitical and sustainability factors.
The 28th Cambridge International Manufacturing Symposium offers an unparalleled platform to delve into these critical issues. By attending, delegates will not only gain insights from leading experts but also engage in rich discussions and networking opportunities that are vital for future-proofing manufacturing for tomorrow and making it more resilient and sustainable.
The symposium is designed for senior executives overseeing manufacturing networks and global supply chains. Attendees can take advantage of numerous networking opportunities, including a symposium dinner at Magdalene College, University of Cambridge, which will provide a relaxed and distinguished setting for further professional engagement.
This year, we are excited to have speakers from AstraZeneca on how future supply chains will need to adapt to serve increasingly niche and smaller patient populations and from Nestlé, on how large multinationals utilise technological advancements and adapt to the changing economic landscape in shaping their future supply chains. A special panel session will also explore circular supply network transformation strategies, asking how we can decouple growth from material consumption.
Whether you are a senior executive or a researcher, the symposium provides invaluable knowledge and connections to help future-proof your operations. Join a prestigious lineup of confirmed attendees, including industry leaders and renowned institutions such as AstraZeneca, Nestlé, Schaeffler Group, Schneider Electric and ZD Energy.
