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Tag: nearshoring

Tariffs Trigger Firms to Shift Operations Closer to Home

Posted on by David Priestman

While headlines have focused on the economic shocks of US trade policy, research shows UK companies are taking proactive steps to localise supply chains, safeguard operations, and offset inflationary pressures.

“Tariffs and trade shocks have put UK firms under real pressure – but they’re not retreating, they’re rewiring. This is a strategic reset – not just a stopgap. The UK is leading Europe in nearshoring and local sourcing, not just to cut costs but to take control. This is a strategic reset – not just a stopgap,” says Matthew Woodcock, Regional VP, CVM/Supply Chain Strategy (EMEA & APAC), Coupa.

Businesses are responding to rising global tariffs and supply chain volatility by taking decisive action. According to new research from Coupa, a leading AI-native total spend management platform, 85% of UK companies are increasing or planning to increase nearshoring over the next 12 months to shift operations closer to home – more than any other country surveyed, including the US (74%), Germany (74%), and France (66%).

Rather than absorb cost shocks passively, UK businesses are strategically reshaping their supply chains to prioritise local suppliers, reduce dependencies on high-risk regions, and build greater resilience into business operations.

Pricing remains a primary pressure point. 61% of UK suppliers plan to raise prices by five to ten percent – the highest share across any country surveyed – with a further 22% expecting to increase prices by more than ten percent. These hikes are expected to hit consumers directly in the coming months, with rising supplier costs likely to be passed along the value chain. To manage margin erosion, businesses are turning to mitigation strategies such as stockpiling inventory (38%) and increasing local sourcing (37%), signalling an urgent shift to contain upstream costs and safeguard downstream stability.

While almost half (49%) of UK firms report that recent US trade policies have negatively impacted their bottom line, only six percent forecast revenue losses above ten percent. This suggests businesses are feeling the pressure but remain comparatively confident in their ability to adapt.

This resilience is underpinned by decisive sourcing shifts. UK companies are moving away from perceived high-risk regions, with 31 percent pulling back from the US and 27 percent from China. Instead, they are increasingly prioritising domestic and European partners, with 41 percent sourcing more from the UK itself, 41 percent from Germany, and 31 percent from France. In total, 75 percent of UK suppliers now prioritise local sourcing in their future strategies – a higher proportion than in Germany (70%) or France (67%).

At the same time, the criteria UK buyers use to select suppliers is shifting. While price remains important, businesses are placing greater emphasis on reliability and compliance. 53% of UK buyers cite proven quality and reliability as a top priority. Stable and competitive pricing (57%) and full regulatory compliance (47%) is also important. These figures point to a clear pivot from cost-efficiency to risk reduction and supply assurance.

Woodcock adds: “Periods of disruption always create space for reinvention – and the smartest companies are using this moment to sharpen their competitive edge. UK firms aren’t just surviving – they’re simplifying, localising, and building supply chains fit for the future.”

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Tariffs and Trade Barriers as Top Concern of Supply Chain Leaders

 

Is Reshoring the Right Thing to do?

Posted on by David Priestman

Is reshoring right, asks Paul Cooper, director and industrial manufacturing specialist at management consultancy Vendigital.

Reshoring has become a key focus for many businesses as they aim to mitigate the effects of disruptive supply chain and geopolitical shocks – but is it the right thing to do? Before taking action, they should re-evaluate the factors that informed their current operational footprint and consider whether anything has changed.

The UK Government’s industrial strategy calls for local supply chain ecosystems to be established to help boost the economy by creating jobs and supporting the development of businesses in fast-growth sectors such as advanced manufacturing, clean energy and life sciences. Localising supply chains will also help to reduce carbon emissions from transportation, aligning with broader sustainability objectives.

A significant number of manufacturers are actively looking to reshore their production and bring supply chains back to the UK. A survey by Medius has revealed that 58% of UK manufacturing firms are moving operations from overseas and among these, 90% reported positive outcomes, including cost reductions, and improved operational security and value. However, reshoring is not a one-size-fits-all solution – it presents both advantages and challenges that should be weighed up carefully.

Reshoring can bring benefits by shortening and simplifying supply chains. For example, it can improve operational resilience and streamline transportation costs due to fewer logistical steps and shorter distances travelled. Advances in automation and AI capabilities can also bring efficiencies, making UK-based production more economically viable and helping to offset higher labour costs. Proximity to market can improve quality control and allow for greater responsiveness to customer demands.

Before localising supply chains, businesses must carefully evaluate whether reshoring would be beneficial. They need to assess the end-to-end supply chain considering key factors such as input costs, location costs, inventory, carbon footprint and customer service and consider how these would change. Reshoring can bring strategic advantages such as improved resilience and simplified supply chains, but it could also bring higher labour costs and capital expenditure (capex) will increase due to the need to invest in local facilities, infrastructure, and technology.

Reshoring involves more than just relocating operations; businesses must ensure that local suppliers and production capabilities can achieve the required scale and quality to satisfy market demand. In some sectors, such as battery production, for example, the absence of an established domestic supply chain combined with higher energy costs makes it more challenging to build a business case for reshoring. The need for raw materials such as lithium, which is mined and processed in countries such as Australia, China and parts of South America, also make reshoring less feasible and battery recycling capacity in the UK is still years away from meeting domestic demand.

Shortening supply chains can simplify logistics, reduce errors, and improve response times to market demands. However, reshoring requires businesses to ensure that local suppliers can meet the required standards in terms of quality, cost and compliance. While logistics may become simpler, sourcing local material suppliers could present new challenges. It’s crucial to assess whether local suppliers would have the capacity to meet current demand immediately, as otherwise businesses would have to allow them time to ramp up.

Customer perception of a UK-sourced supply chain can be a strong selling point for some businesses, especially those looking to capitalise on growing demand for locally produced consumer goods. However, this benefit in terms of brand perception should be weighed against potential pricing impacts, as customers may be reluctant to accept the higher costs associated with UK manufacture.

Finally, businesses involved in innovation should also consider the benefits of basing their operations close to their R&D teams. This can help to accelerate the route to market, enabling faster scaling and close collaboration, particularly in technology and AI-driven sectors. By leveraging the UK’s strengths in automation and AI, businesses can offset higher labour costs typically associated with reshoring, enhancing both innovation and operational efficiency.

While reshoring can enhance supply chain resilience, simplify logistics, and reduce complexity, it often comes with higher costs and infrastructure challenges. Businesses must evaluate their operational models, weighing up factors like cost, resilience, and environmental impact carefully. A balanced approach, supported by government incentives, will be crucial to making reshoring a beneficial strategy for more businesses.

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The Supply Chain in 2025: Trends and Challenges

Posted on by Keith McKinley

2024 was a complicated year for the supply chain; from disruptions to shipping on the Red Sea through to rail strikes, port closures and announced changes to trade tariffs by the leading economic power internationally, the challenges to unhindered trade were many and diverse. So what’s in store for 2025? Simon Thompson (pictured), VP Northern Europe at JAGGAER, delves into a dozen major trends.

1. Cost Savings
Cost management and achieving savings remain a top concern for businesses worldwide. Investments in AI-driven analytics will enable businesses to identify cost-saving opportunities across the supply chain by identifying inefficiencies, optimizing supplier performance, and negotiating better contract terms — ultimately enhancing the bottom line without compromising quality.

2. Risk Management
2024 was a complex year for supply chains globally. It saw disruptions caused by Houthi attacks on vessels in the Red Sea, Canadian rail strikes and the closure of Ningbo Port in China due to a container explosion on the YM Mobility to name a few. Whether geopolitical, economic, or environmental, the vulnerabilities of the supply chain have been evident and savvy businesses have made moves to derisk their operations. Using technology and data to improve transparency and communications all along the chain, it is in fact possible to prevent bottlenecks and rapidly identify alternative routes or suppliers.

3. AI and data quality
It’s becoming a mantra that AI is only as good as the data it uses. As businesses leverage AI automation to make processes more efficient, sourcing error-free timely data from across the supply chain can be a thankless task for both suppliers, inputting information, and buyers, analysing it without automation. As effective AI increases the demand for large volumes of high-quality data with transparent and traceable data sources, it will become crucial to leverage automation to drive efficiency.

4. Blockchain Technology
Blockchain technology is expected to play a crucial role in making supply chains more transparent and traceable. With its decentralized ledger system, blockchain offers unparalleled data integrity, making it easier to track the provenance of goods and ensure compliance with ethical and environmental standards. Although this technology is still at an early stage, we can expect the debate to heat up around blockchain in 2025.

5. Cybersecurity
More use of technology, however, also means more exposure to cyber threats. As businesses place more and more of their data and systems on the cloud, it is becoming more and more complex to protect sensitive customer data as mandated by international regulations. Investing in systems and governance to protect the business across all its international operations is key.

6. Regulatory Compliance
Greater consumer awareness of sustainability and ethical issues along the supply chain, in addition to calls for greater user safety and quality, are driving increasing scrutiny from regulators. The EU Deforestation Act 2023/1115 and the US Uyghur Forced Labor Prevention Act (H.R. 6256) are just two examples of regulations concerning the supply chain. Organizations must stay ahead of the curve by setting up systems to proactively and simply assess their suppliers along the chain to ensure ethical sourcing, anti-corruption measures, and environmental responsibility.

7. Scope 3
As businesses strive to achieve their sustainability goals, Scope 3 emissions — those indirectly resulting from the supply chain — are increasingly coming under scrutiny as they typically account for the majority of carbon footprint. Improving communication channels with suppliers and gathering information regarding their eco-friendly practices, responsible sourcing of raw materials, and reduced energy consumption, is key to ensuring that Scope 3 emissions are curbed. Shifting the focus from cost cutting to creating partnerships for sustainability is key to creating greater transparency and flexibility as well as an environment that fosters sustainable innovation along the supply chain.

8. Supplier relationship management
More resilient supply chains depend on better collaboration between parties. Stronger partnerships are created through transparent communication channels that make transmitting key information on certifications, potential bottlenecks, low stock or by provisioning difficulties in real-time without overburdening the supplier with an enormous admin onus. Providing seamless and streamlined systems to expedite information sharing can create the ideal environment to develop new strategies such as new shipping routes, new raw or component product suppliers or even co-investment in new technologies and innovation to improve end products.

9. Nearshoring, Reshoring
As the new United States president steps into his role on 20th January, the world will be holding its breath to find out whether the tariff increases threatened on international trade will take effect. With Chinese products risking “an additional 10% tariff, above any additional tariffs”, Mexico and Canada an increase to 25% and EU businesses anything between 10% and 20%, it is likely US businesses will be increasingly sourcing from national providers. Closer to home alternatives, such as sourcing from Mexico would shorten the supply chain and enhance control over logistics, as well as reducing environmental impact by reducing the distance goods travel.

10. Sourcing from Emerging Markets
Finally, another strategy to respond to tariff will be sourcing from emerging markets. This strategy, useful to help diversify and thus risk-proof the supply chain, can also benefit sustainability provided regions with lower carbon footprints or renewable energy sources are selected.

Conclusion

The global supply chain has been put under significant pressure in 2024, and response has highlighted vulnerabilities as well as ideal pathways to resilience. Technologies and strategies taking the lead in 2025 will build on these as businesses continue to bolster their supply chain against volatility and disruptions, while strengthening areas of potential exposure with increased intelligence derived from greater transparency along the entire supply chain.

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Supply Chain Predictions for 2025

Posted on by Keith McKinley

Looking ahead to 2025, Supplyframe shares its predictions on the electronics supply chain industry, including AI, resilience, and other industry thoughts, by its CMO, Richard Barnett.

1. Resilience will rise in 2025

Electronics supply chains will focus on resilience, AI integration, and sustainability in the coming year as companies seek to gain the visibility and capabilities to stay ahead of numerous challenges and forms of risk.

In terms of resilience, supply chains will continue to seek ways to identify components that pose lower levels of risk, cost, availability, or general ease of sourcing. Part of this effort will also be driven by the continued process of nearshoring as organizations seek to localize their supply base to reduce risk.

2. AI gets white hot in supply chain

The buzz surrounding AI continues as supply chains seek novel ways to integrate the technology. In 2025, organizations will focus on new applications for the technology that allows them to quickly parse supply chain intelligence or automate manual tasks in design, sourcing, and procurement.

3. A new focus on sustainability

Sustainability has continued to grow in terms of overall focus. In 2025, organizations will look for ways to address scope-3 emissions in their supply chains (supplier and logistics emissions), accounting for roughly 40% of a product’s carbon footprint. New forms of intelligence allow for a deeper understanding of an individual component’s CO2 emissions, providing teams with insights that allow them to consider sustainability earlier in the design process than ever.

4. Challenges will continue throughout the industry

Global chip shortages have improved overall, but demand continues to outpace supply in many categories as new capacity takes years to come online. Semiconductors, of course, also have notoriously long manufacturing lead times.

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Nearshoring Accelerates Demand for European Space

Posted on by David Priestman

The amount of industrial space taken up by manufacturers in key European markets is rapidly increasing – up 28% last year – as they ‘nearshore’ operations closer to their consumer markets to improve the flexibility and sustainability of their supply chains, according to Cushman & Wakefield.

Supply chain disruption, rising costs including manufacturing wages in Asia and for transport, geopolitical challenges to products crossing borders, and a growing focus on sustainability and social impact, have illuminated the complexity of how and where we source the products we make, move and consume.

Manufacturers responded by taking 9.6 million sq m (103 million sq ft) of space last year, up from 7.5 million sq m in 2021 – against a backdrop of overall logistics & industrial space declining 4% year-on-year. The figure is also a significant jump on pre-pandemic take up, which had reached 7.8 million in 2019 after increasing steadily in the preceding years.

Although cost was a significant driver in ‘offshoring’ manufacturing facilities away from Europe in previous decades, it is not the only factor driving current nearshoring activity. While remaining hugely important to businesses considering where to locate production facilities, the differential in costs between making goods in Asia compared with Europe has narrowed. Other factors – highlighted during the pandemic – have helped accelerate the trend, Cushman & Wakefield highlights in a new report on nearshoring.

Sustainability, social impact, oversight, flexibility and control are also influencing decision making. This is particularly the case for businesses investing significant capital in automation and robotics for production.

Tim Crighton, Head of Logistics & Industrial EMEA at Cushman & Wakefield, said: “The cost of a robot for production is broadly similar around the world. The return on investment is therefore quicker and more attractive in some of the traditionally higher cost labour markets like Western Europe against comparatively lower cost labour markets like Asia. Layer in the supply chain stress experienced through the pandemic and the shifting sands of global politics and you have a compelling convergence of factors if you are a manufacturer of goods.”

The report identifies particular geographies and sectors in Europe that stand to benefit from the trend for a variety of reasons, including:
• Central & Eastern Europe, thanks to its relatively low labour costs, geographic proximity to large markets and strong transport links represents one of the most attractive regions for investment in manufacturing;
• Spain and Portugal are highlighted from a cost and proximity-to-consumer-markets perspective, along with key ports along the northern Mediterranean coast as far as northern Italy;
• Major European economies such as Germany, France, Italy, and the Netherlands will benefit as specific industries grow and evolve, including electric vehicle and battery production, and semiconductor fabrication;
• The UK, as more businesses seek domestic suppliers as a result of Brexit supply chain challenges, although it will also face additional challenges;

Sally Bruer, EMEA Logistics & Industrial Research & Insight Lead at Cushman & Wakefield, said: “Nearshoring is not just about cost – companies are also weighing up their speed to market, transparency, sustainability and geopolitics. Governments also have a key role to play by incentivising investment in product manufacturing that is critical to the delivery of economically, environmentally and socially sustainable industries. As an example, European governments have been stepping in recently with subsidies to secure the go-ahead for major manufacturing projects after the EU loosened state aid rules in the face of fierce global competition.”

In terms of property investment, the broader logistics and industrial sector has been at the sharp end of recent price correction, but investors remain keen on business-critical assets where the occupier commitment is secure and where return profiles are attractive. As such, nearshoring represents an opportunity for developers, investors and occupiers of manufacturing space to work together to create new assets in new geographies, to create value for all parties and enjoy the potential for operational efficiencies and higher levels of investment return.

While manufacturing projects can take a long time to materialise into the construction of physical assets, these facilities are then integral to production, and typically secured on long-term commitments.

Sally Bruer added: “Occupiers will prioritise newer buildings that are more operationally and economically efficient, especially where high levels of automation are implemented. Power sources will also be a key consideration as sustainability credentials are an increasingly large part of the decision making process. Investors will be drawn to these assets for the same reasons, especially where there are strong commitments by established businesses in key markets where risk appetite is low. Less established markets also stand to benefit from nearshoring and these may appeal to investors with higher risk appetites.”

Raft of Warehouse Deals in Czechia Signed

Posted on by David Priestman

CTP has signed deals totalling 96,000 sqm at five of its logistics CTParks across the Czech Republic since the start of 2023. A range of factors including rising domestic consumption, strong economic growth and the trend for ‘nearshoring’ have led to multinationals continuing to expand their footprint in the country and the wider Central and Eastern European (CEE) region.

Since January, Dr.Max the rapidly expanding Czech headquartered pharmacy business, has taken 27,000 sqm on leases at two CTParks in the Czech Republic. It has signed for 15,800 sqm on a 20 year lease at CTPark Brno Lisen in the south of the country, where Dr Max will also open a pharmacy for the community of businesses at the park. Dr.Max has also leased 11,300 sqm at CTPark Ostrava Poruba for 5 years in the east of the Czech Republic. Dr.Max operates across the CEE region and Italy, with 17,000 employees and 2,500 pharmacies in countries including Poland, Slovakia, Hungry, Bulgaria and Romania as well as the Czech Republic.

Dr.Max is just one example of a multitude of CEE businesses that have benefitted from the fast growth of the region’s economies and middle classes in recent years. CTP published research last month, called ‘CEE: A Business-Smart Region’, that showed the region has shown strong resilience with real GDP growth outperforming Western European markets and the whole of Europe. This trend is set to continue as CEE GDP growth is forecast to grow twice as fast as the Eurozone average between 2023 and 2026. Fuelled by economic expansion, domestic consumption in the CEE has grown by almost 50% since 2010, more than double the rate of the EU-27 average.

The Czech Republic and the wider CEE are also benefiting from the ‘nearshoring’ trend among international businesses. In the first part of this year, a German provider of third-party logistics solutions (3PLs) has signed for 19,000 sqm of space at CTPark Žatec in the north west of the Czech Republic just 30km from the German border. While an Asian manufacturer of IT components has taken 50,000 sqm of space at CTPark Blucina in the south of the country, close to the Austrian border.

Nearshoring has been driven by the pandemic and a changing geopolitical environment increasing supply chain risk and in turn demand for manufacturing closer to home, where products consumed in Europe are increasingly made in Europe. In a recent survey MAERSK identified the Czech Republic as a global top 10 hotspot with Poland ranked in first place and Romania in second.

Jan Žák, CEO of Dr.Max for the Czech Republic said: “The CEE’s strong economic backdrop has supported the expansion of our business and we believe it will continue to do so for many years to come. We value our relationship with CTP because it builds energy efficient logistics properties to suit our needs then continues to own and manage them for the long term. This creates a lasting landlord-tenant relationship because it means CTP has an in-depth understanding of our requirements, which is invaluable as we increase our footprint across the region. We are already tenants at three CTParks in Romania, where we occupy almost 50,000 sqm of space.”

Jakub Kodr of CTP said: “The CEE continues to demonstrate its resilience and dynamism, with the region’s industrial and logistics sector expected to outperform Western and Southern Europe. The fact we have let 100,500 sqm of space in the Czech Republic alone since the start of this year, is further evidence of the economic strength of the region. In Q1-2023 we signed leases totalling 297,000 sqm and two-thirds of these were with existing tenants. This is central to our business model of growing with existing tenants like Dr.Max, providing them with a flexible service tailored to their business, so when they need to expand they do so within our portfolio.”

CTP also attributes its success to being what it calls ‘Parkmakers’ – not just building logistics buildings — but creating vibrant sustainable business ecosystems for people – its clients, their employees, and local communities. Developing industrial space alongside cafes, gyms, convenience stores and more, all close to urban centres, with energy efficient buildings and forest conservation.

Logistics Investors set to focus on ‘First Mile’

Posted on by David Priestman

There could be increased appetite from investors for ‘first-mile’ logistic assets as global supply chain disruption drives a need for firms to improve upstream, business-to-business supply chain logistics, according to a new report from leading global property advisor Knight Frank.

Knight Frank’s latest Future Gazing Report explores the changing requirements and opportunities for first mile logistics, including how the need for increased resilience is driving a reconfiguring of supply chains, evolving infrastructure requirements and the relocation of manufacturing hubs. The report also analyses the areas in which these trends could create new opportunities and requirements for industrial and logistics real estate.

Knight Frank’s report explores how firms’ safety stock requirements increase in line with upstream spikes in supply lead times. If safety stock accounts for 20% of a firms’ UK inventory, and maximum lead times increase from 100 days to 140 days (or 40%) due to supply chain shocks generated by trade tensions, labour shortages and COVID-related shutdowns and shipping disruptions, firms need to raise their total inventory holdings by c. 8% to protect their order books.

As well as holding additional safety stock, many manufacturers are planning to diversify and invest in their supply chains to improve visibility and security, which could provide opportunities to grow UK manufacturing as firms weigh up the benefits and costs of reshoring operations.

Firms across a range of industries are considering reshoring. According to Knight Frank’s analysis, reshoring discussions are currently most prevalent among pharmaceuticals and healthcare-related industries, supplemented by automotive firms, including those focused on alternative fuel vehicles, technology and biotech firms. A relocating or diversifying of production bases will likely necessitate a change in the configuration of the supply chain.

Knight Frank analysed and ranked 41 UK ports based on their suitability for future logistics investment and development given their potential role in shortening supply chains and mitigating supply disruption. Accounting for various factors including port capacity, import and export growth forecasts and access to consumer markets and labour, the analysis found that Liverpool, ranking first for forecast export growth and in the top three for access to consumer markets and skilled labour, emerged as the top location for port-centric logistics potential. Grimsby & Immingham and London ranked second and third.

Claire Williams, Industrial and Logistics Research Lead at Knight Frank, commented: “The rise of e-commerce has led to considerable change at the consumption end of supply chains, with additional costs and facilities being allocated to this part of the supply chain in order to raise service levels and reduce delivery times. However, rising costs and delays at the production end of the supply chain are driving a rethink of the locations of these facilities and the transport connections linking them to downstream operations.

“There is increasing awareness of the opportunities in the first mile of the supply chain. As we enter the next phase of the economic cycle and perhaps a new era for global trade, logistics investors and operators must look to supply chains, assets and opportunities that can provide stability for their operations and returns. First mile markets can enable firms to build and maintain a secure and responsive supply chain for their end users. This demand will continue, with the potential to create attractive opportunities for income-driven investors looking to deploy capital into assets underpinned by strong structural tailwinds.”

Europe set for nearshoring boom

Posted on by Keith McKinley

European businesses are looking towards Romania, Turkey and Morocco as alternatives to production in Ukraine and Asia following months of supply-chain disruption, according to the new ‘Supply Chain Disruptions’ report, from JLL.

According to the report, number of businesses operating within the retail and manufacturing sector have already decided to nearshore part or all of their production. JLL’s internal data shows that the primary beneficiaries of reshoring are Central Europe and Romania, while Turkey and Morocco are looking towards nearshoring.

The move comes after the pandemic resulted in a breakdown of distribution networks and severe bottlenecks at ports and airports, meaning companies started to prioritise nearshoring in a bid to address supply chain disruptions. JLL also expects a lack of land and labour shortages to push up demand in Central Europe from primary to strategically located secondary and tertiary markets.

Data from Flexport shows the average container journey from Asia to Europe has nearly doubled since 2019, while research from Buck Consultants International (BCI) found more than 60 per cent of US and European companies are planning to bring some of their production back to their own region.

Considering established transportation networks and gateways, markets along two of Europe’s distribution corridors: the traditional blue banana and emerging Black Sea banana, are most likely to experience rising demand from third-party logistics (3PLs). Furthermore, severe supply constraints in prime markets along these corridors will push demand to strategically located secondary and tertiary markets along these same corridors.

Guy Gueirard, Head of EMEA Logistics at JLL, said: “Rising wages in low-cost manufacturing locations and increased risk due to climate change, strikes, and accidents such as the Suez Canal blockage have fuelled discussions of nearshoring and growing diversification over the past decade. However, risk versus cost scenarios in combination with the consequent loss of manufacturing infrastructure in Europe after large parts of manufacturing moved to Asia, meant Asian markets continued to be favoured as trading partners and manufacturing bases for a large range of products – but things are changing.”

Lisa Graham, Head of Industrial and Logistics Research, EMEA, JLL, said: “Two years of a global pandemic and the Russian-Ukrainian war are starting to shake things, after highlighting risks and resiliency gaps that outweigh cost considerations for all types of businesses. Businesses have realised that diversification strategies are essential for maintaining optimal inventory levels in European markets and this research proves that we’re seeing a disruption to the supply chain and we will continue to see this trend emerge.”

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