MARCH 202319manufacturing sector mentioned down below that might help businesses capitalise on growth and turn risks into benefits.Tackling Supply Chain DisruptionsDespite being a major trend we'd all prefer to put to rest in 2022, supply chain disruption seems to be here to stay. The current outlook is less than positive due to factors like rising inflation (and consequently higher freight costs), driver and labour shortages, logistics problems brought on by factory closures, geopolitical conflicts in key sourcing regions, and changing weather patterns due to climate change that jeopardise viable shipments. Manufacturers are, nevertheless, keen to make the best of a poor position, starting with insourcing, as we have observed. Some manufacturers opt to cut out the middleman by buying logistics firms or creating their own internal logistics operations rather than relying on third-party logistics companies to handle fulfillment. Due to more efficient logistics networks, this strategy enables better supply chain visibility, superior quality control, and decreases in shipping costs and time. D2C Model gets more ProminenceManufacturers are also switching to a direct-to-consumer sales approach in place of the conventional multi-tiered channel sales model, in which product flowed from manufacturer via wholesaler or distributor to end customer. Similar to insourcing, this strategy cuts out the middleman, giving source manufacturers greater control over their pricing and brand image while also allowing them to forge stronger bonds with their original equipment manufacturer clients. Some businesses have even used this strategy when dealing directly with their suppliers rather than going through a middleman, resulting in a more integrated supply chain.Reshoring & In-sourcingReshoring, or bringing imported products or components to domestic production, was already well on its way to becoming a standard procedure among US-based manufacturers prior to 2022. Along with this renewed attempt at reshoring, manufacturers also have been reevaluating their sourcing. The disruption of the global supply chain has made it difficult for manufacturers to obtain components from other nations. Many manufacturers have responded to this by near-sourcing or looking for alternative countries or geographies as strategy to diversify their sources of supply. In manufacturing, near-sourcing, often India is making slow but steady progress toward Industry 4.0 thanks to government initiatives like the National Manufacturing Policy, which aims to raise manufacturing's GDP share to 25 percent by 2025
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