Citi GPS: Global Supply Chains
Uncertainty In Global Supply Chains Is Going to Stay
The report, which follows last year’s report titled: The Complicated Road Back to “Normal”, draws insight from Citi Research’s propriety Global Supply Chain Pressure Index, trade flows and survey responses from multinational corporations and their suppliers globally.
The Citi Global Supply Chain Pressure Index, outlined in the report, continued to ease on the back of a slowdown in global consumer’s demand for goods. Core goods inflation is expected to alleviate in the coming months as heightened supply chain pressure has been a key driver of price pressure. The report cautions that while the decrease in demand is an important driver of loosening supply chain pressures, these developments are also a sign of mounting recessionary risks across countries and globally.
By analysing the
“The pandemic and then the war in
Citi and its research partner surveyed 2,327 global corporates for its
- Rising prices and rising interest rates have had impact as corporates take steps to boost financial supply chain resilience
- Corporates and their suppliers want to strengthen relationships and broaden their supplier base to mitigate further disruption
- Pandemic disruption has given way to geopolitical tension as the primary threat to supply chain funding stability
- Despite economic headwinds, respondents remain optimistic about the prospect for export growth
- ESG remains an area of focus, but lack of clarity has impeded meaningful progress.
“Given the impact from global events businesses have re-evaluated supply chain strategies. Notably, resiliency and continuity is taking centre stage on sourcing through the production cycle. Another developing trend is the shift from “Just in time” to “Just in case”. Buyers are now building-in more resilience by purchasing earlier and holding more inventory. As a result, financing the end-to-end supply chain remains top priority. How this trend plays out long term remains to be seen. Buyers, however, are focused on ensuring their suppliers have access to better and stable working capital solutions. Businesses are also accelerating the digitalisation of supply chains. Digitalization enables ease of monitoring and management throughout the chain, enabling the robustness for any future disruptions.”
The digital copy of the report is available here
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About Citi Global Perspectives & Solutions (Citi GPS)
As our premier thought-leadership product, Citi Global Perspectives & Solutions (Citi GPS) is designed to help readers navigate the most demanding challenges and greatest opportunities of the 21st century. We access the best elements of our global conversation with senior Citi senior professionals, academics, and corporate leaders to anticipate themes and trends in today’s fast-changing and interconnected world.
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