UPS Issues Results of 5th Change in the Supply Chain Survey

High tech shippers are continuing to innovate and grow their supply chains, and are employing strategies that can enhance their operation both in the short and long term.

This is the overriding outcome of UPS’ fifth CITC (Change in the Chain) survey, conducted on their behalf by IDC Manufacturing Insights, who received information from a total of 516 executives responsible for high tech logistics operations across Asia, Europe, Latin America and North America.

As with previous editions, this survey probed multi-faceted supply chains, taking in factors such as export growth, off shoring (right- near-), Chinese retail, and new digital technologies such as 3D printing.

The survey presented the now familiar theme of growth in the area of high tech exports. Of respondents surveyed, 74% stated their belief that exports will grow at a higher speed, or the same speed of the next couple of years. The most fertile grounds for prospective growth were said to be North America (36%) and Latin America ( 46%).

VP of Segment Marketing at UPS, Derrick Johnson, has stated his belief that the growth in exports will remain intact in a recent interview, and pointed to the importance of this for his company and their customers. He said that the robust state of demand for technology across the globe is good news for all interested parties.

There was a good hard look at off-shorin, right-shoring and near-shoring, and it was discovered that:

  • 47% of respondents were focusing on off shoring (defined in the survey as the movement, manufacture and/or assembly of products to low cost nations based upon historic differentials in labor rate)
  • 45% of respondents were focusing on near-shoring(defined in the survey as the movement of manufacture and assembly nearer to the demand location)
  • 35% of respondents were focusing on right-shoring (defined in the survey as the optimization of the supply chain in order to take advantage of necessary resources and cost (infrastructure & skills) with the objective of increasing customer satisfaction and margins)
  • When Johnson looked at the three shoring reports within the survey, it appeared that shippers were moving more towards near-shoring, this makes sense for shippers who are seeking to leverage their off shore capabilities and move the product closer to the points of consumption.

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