The Suez Canal crisis happening so quickly after the impact of the pandemic underlines the reason why as many as 64% of manufacturing companies are planning to bring production back to North America. A BDO Consulting survey found only 24% of 100 manufacturing company CFOs polled plan to relocate production to another country this year. As more companies nearshore, many supply chain management companies are investing in digital transformation and stepping-up automation. But even with new technology in place, the majority cannot adapt quickly – a key element in a time of crisis. Nearshoring may cut down on time and expense, however, it’s a long-term strategy that takes several years and may or may not solve problems like the Suez Canal blockage.

The more immediate problems are knowing how supply chains handle delays, source supply shortages, and overcome lack of visibility into their operations. The Suez Canal crisis highlights the need for companies to have a deeper understanding of their supply chains. As the pandemic has shown, the demand for flexible, accurate supply chain logistics is on the rise and it’s important to be able to adapt to larger, more complex methods of information and product transportation.