Reconfiguration of Supply Chains of German Firms
Even after the coronavirus pandemic, German manufacturing is continuing to restructure its supply chains in order to reduce the risk of production losses. Companies are focused primarily on diversification. 58 percent have broadened their supply chains and found new suppliers in the past year. One in three companies is also planning to expand its supplier base further. Last year, 45 percent of manufacturing companies also made increased use of warehousing. However, only 12 percent are planning such increases in the future. Moreover, 44 percent of companies report improved monitoring of their supply chains, while 17 percent have increased their vertical integration and reintegrated previously outsourced production steps into the company.