S&P Global Market Intelligence has released a new report as part of its Big Picture 2024 Outlook Report series, focusing on the supply chain outlook for 2024. The report, titled “2024 Supply Chain Outlook: Delivering resilience in adversity,” emphasizes the ongoing importance of supply chain resilience while acknowledging the financial challenges companies may face in implementing robust supply chain strategies.
Key Findings of the 2024 Supply Chain Outlook Report
- Resilience vs. Profitability: The report highlights a conflict between the need for resilient supply chains and reduced corporate profitability. Companies are expected to prioritize technology investments and organizational improvements over traditional approaches like maintaining high inventory levels or diversifying sourcing.
- Global Supply Chain Normalization and Risks: While global supply chains have largely normalized in 2023, various risks such as trade protectionism, conflict, water stress, and labor strikes are anticipated in 2024. The need for resilience is clear, but there is hesitance and difficulty in investing in strategies like higher inventories and diversified sourcing.
- Corporate Profitability Trends: S&P Global Market Intelligence data suggests that corporate operating profits may decrease in 2024. There is a trend of reducing inventory levels, indicating a move away from just-in-case inventory models. Multi-sourcing approaches also appear to be declining in favor of reshoring initiatives.
- Technology and Organizational Strategies for Resilience: The report mentions the availability of technologies like generative AI to enhance supply chain resilience. However, there is caution due to mixed experiences with technologies like blockchain. Organizational strategies, including labor engagement, geographic diversification, environmental tracking, and supplier management, are recommended for ongoing resilience.
About S&P Global Market Intelligence
S&P Global Market Intelligence, a division of S&P Global (NYSE: SPGI), is known for providing in-depth information, insights, and data and technology solutions. The organization aims to assist various global markets, including capital, commodity, and automotive, in navigating economic landscapes and making informed decisions.
Disclaimer
S&P Global Market Intelligence’s analyses, including opinions and credit-related assessments, are opinions as of their publication date. These are not recommendations for investment decisions and do not address the suitability of any security.
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