IFO registers change of strategy: delivery bottlenecks are forcing many companies to rethink

Not only rising energy and raw material costs, but also the increasingly unpredictable logistics are causing considerable problems for companies.

IFO registers change of strategy: delivery bottlenecks are forcing many companies to rethink

Not only rising energy and raw material costs, but also the increasingly unpredictable logistics are causing considerable problems for companies. To avoid supply bottlenecks, most companies are now adjusting their strategies: large ones differently than smaller ones.

Numerous German companies have adjusted their purchasing strategies in the face of growing supply chain problems. In a survey of 4,000 companies by the IFO Institute, 68 percent of industrial companies said they had increased their inventories. 65 percent broadened their supplier base with new suppliers and sources of supply. According to the Munich economic researchers, 13 percent brought outsourced production processes back into the company.

"Large companies have taken more action as a result of supply chain disruptions than small and medium-sized companies," said Ifo researcher Andreas Baur. "In addition, large companies have diversified supplier structures in particular and monitor their supply chains more closely. Small and medium-sized companies, on the other hand, tend to rely on increased warehousing."

As of May 2021, not even half of the companies had planned to adjust their procurement strategy, the survey found. In the most recent survey three months ago, 87 percent of industrial companies, 76 percent of wholesalers and 63 percent of retailers said they had changed their strategy. "This indicates that many companies are now reassessing risks in supply chains," said Baur.