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Is Now the Time to Diversify your Vendors?

Much of the world has relied on very few sources to manufacture their products. Industries from healthcare to fashion and beauty have been heavily primarily reliant on the Eastern Hemisphere for production and sourcing. Especially during the current crisis, it has been brought to light just how dependent hundreds of thousands of supply chains had been on one geographic location.

While a lack of diversified suppliers in the U.S. or the Western Hemisphere as a whole is nothing new, the PPE shortage has caused a significant wave of change in a short amount of time. Within our product roadmap, we at Suuchi have been able to expedite the expansion of our capabilities here in the Americas to source, procure, and produce medical-grade goods. We have also seen many of our existing partners retool their supply chain to be able to provide PPE goods in the U.S. or work to become FDA-certified to create much-needed items, such as N95 masks.

What do these changes mean for the future?

It means that businesses will be empowered to build a strong network of partners that span across the globe and various capabilities to have a safety-net across their entire supply chain. As we mentioned earlier, when one country needs to meet the demands of the whole world, there are dozens of issues that arise that prevent supply chain efficiency. When decision-makers seek out domestic or nearshore alternatives, they’re able to alleviate a portion of high surges of demand and build streamlined processes for the long-term. While it may not eliminate shortages in unprecedented times like these, it does help to minimize how drastically the market swings.

As the current focus remains on building resources to produce medical-grade PPE in the Western Hemisphere, we will inevitably see a shift to nearshoring across industries. A local-for-local strategy may be born out of a time of the fear of the unknown, but it’s one that will drive long-term positive impacts. Not only will it stimulate local economies, but it also automatically sets up multiple backup plans for any disruptions a company’s supply chain may face moving forward.

As you reassess your supply chain strategy, it’s important to remember that this isn’t an overnight change. It will take time to identify the right partners and for more resources to be fully available closer to home with the right tools to have full visibility into the end-to-end process. As you research the right path for your company’s supply chain, know that Suuchi is perfectly positioned to truly impact your supply chain.

Learn more about Suuchi’s global network of partners

Written by Emanuel Mercapidez & Lizzie Sessa

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