Relocation of purchases : which sectors are most concerned ?

Publisher

PwC x Strategy& x Conseil National des Achats

Year

2020

Language

English

Pages

32

File Size

3 MB

File Format

PDF

Abstract

The French National Purchasing Center and PwC France and Maghreb have joined forces to identify the "most favourable and priority" sectors of activity and product categories for relocation. The French sectors most exposed to supply risks Health-pharmaceuticals, agri-food, electronics and manufacturing accounted for the most imports in 2018 : 70% of France's annual volume, or €382 billion in imported purchases. Depending on the type of market (emerging or priority), it is necessary to either acquire new production capacity in France and Europe, or to repatriate production to mature markets. Key success factors for production relocation Before starting the investment and implementation studies, several elements must be identified. Production costs, available skills, the ecosystem of suppliers, the regulatory environment and the financing of the investment are the key information that organizations must have in order to apply an adapted strategy. Therefore, it is important to define the purpose of the relocation, the actors impacted and involved, and the geographic locations considered. The new locations chosen will also impact the implementation of the relocation, due to the fiscal and regulatory framework that they imply to respect. Want to know more about relocation ? Discover the dedicated article "Securing your purchases : when relocation is a solution" in the blog. To learn more about the findings of this study, please log in and download the full document.