Supply Chain Digital Transformation

By Luis Emilio Fernandez de Jauregui

New trade deals, trade wars, global pandemics, environmental changes and social movements, along with many other situations, impact the global supply chain and remind us how critical it is to operating businesses effectively. Inefficiencies in the supply chain cost retailers more than $1 trillion in lost sales each year, according to a Sourcing Journal report, and a 2017 McKinsey report indicates that the average supply chain had a digitalization level of 43 percent.

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Mexico the top destination for reshoring operations

One trend we have seen in recent years, which is also hastening as a result of COVID-19, is the movement of productive plants from Asia to Mexico.

The signature of the USMCA, the need to nearshore suppliers and constant cost pressure are reconfiguring global value chains and accelerating decisions for new production plants in the North American region.

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Leadership challenges generated by Covid-19 pandemic

By Guillermo Fernández de Jáuregui.

To all companies the key priority has been the safety and well-being of their employees during the Covid-19 crisis. But now a long-haul approach has to be based on two crucial ideas:

  • Companies must consider the full breadth of their employees’ needs as people. Besides safety, it’s also important to address the want for truth, stability, authentic connections, self-esteem, growth, and meaning in the context of the crisis.
  • This crisis should be considered in three phases: the shelter-in-place phase, the re-opening phase, and the post Covid-19 phase.

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