FaMAS’ selection of TOP active middle market transactions in February 2021

Today, I had an interesting conversation with an MD of a large German electronics group. He said, one of the biggest challenges in the last 12 months was supply chain disruption. His company had suffered from it in every month since February. He indicated, had he been prepared for it with local suppliers as second source, he would have made significantly more revenue at a lower cost of complexity from disruptions. Availability beats price.

Clearly, Corona is changing business in Europe in many ways. Supply chain management is one of them. There have been many disruptions over the last 12 months. Companies and governments have started to look for local suppliers. Having spoken to many companies about Corona I think supply chain disruption has been the most common and impactful problem. Many managers believe it will change the landscape and lead to less far-east outsourcing and more EU-based sourcing. Perhaps this will also mean having a local presence in Germany/EU will become more important for foreign suppliers. Let me know what you think about this topic!

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