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Navigating Supply Chain Challenges

The benefits of third-party insight

Pierre-Nicolas Disser
Thu, 02/08/2024 - 12:02
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With concerns for an economic downturn constantly looming, the global manufacturing industry finds itself navigating through a sensitive time. Once bustling factories, go-to for the world’s largest brands, are experiencing an unexpected lull attributed to multiple factors, including inflation and source diversification from key markets such as the United States, Europe, Vietnam, Mexico, and elsewhere.

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These concerns have fueled counteraction from some factories in traditional low-cost sourcing countries to regain lost time on the line. Buyers are being enticed with significantly cheaper prices, but often this strategy involves shortcuts such as subcontracting and compromising on material quality. While this approach might seem like a strong deal on the surface, it heightens substantial risks, ranging from potential product quality and ethical compliance.

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