Introduction:
The pandemic, global tensions, and changing consumer preferences have caused many problems for the consumer packaged goods industry. A lot of companies are now thinking about bringing production back to their home country to reduce their risks and improve their sustainability. When transportation and logistics are disrupted, it causes delays and shortages of products. Companies are also worried about trade sanctions and supply chain reliability. Plus, more and more people want locally made and sustainable products.
Benefits & Challenges of Bringing Production Back Home
Bringing production back home has a lot of benefits for consumer packaged goods companies. They can reduce their risks, have more control over their production processes, and make better quality products. Plus, it’s better for the environment because it reduces transportation-related emissions.
However, bringing production back home has its challenges, such as higher labor costs and more regulations which companies can overcome by investing in automation and changing their supply chain strategies & practices. Some companies are using robots and AI to make things faster and cheaper. Also, working with government agencies and industry groups can help companies influence and also deal with regulations in a more effective way.
The Future of Bringing Production Back Home
The most significant factor for bringing production back home is becoming increasingly popular in the consumer packaged goods industry because of the pandemic and other recent events. In the future, we expect to see more innovation, job creation, and sustainability as a result. New technology like blockchain, the Internet of Things, and machine learning will help make the supply chain more efficient and transparent. Plus, as more people want sustainable and locally made products, companies must focus on that.
The pandemic and other recent events have accelerated the trend toward reshoring the consumer packaged goods industry too. In the future, companies can expect increased innovation, job creation, and improved sustainability due to reshoring. New technologies like blockchain and machine learning will improve the supply chain’s visibility, efficiency, and transparency, additionally, as consumers demand sustainable and locally produced products. “Made in USA” is becoming more than a country of origin and labeling statement vs. a driver for sale and indicator of better and more sustainable products. To better meet the needs of their customers and position themselves for long-term success, companies must prioritize sustainability in their supply chain strategies. Coming up with the right strategy that can meet the market’s demands and be done profitably and efficiently is easier said than done. If you feel you don’t know where to start, there’s a good chance there’s a JIT expert who can help you figure it out. The sooner you loop us in, the better. Head to our contact form to start the conversation on how we can help your consumer package brand in a similar fashion to our previous clients.