Weekly edition | Nov. 9, 2021  By Edwin Lopez Markets for cloud technology and U.S. industrial real estate are reaping the benefits as companies look to make their supply chains more resilient. (Was this email forwarded to you? Sign up here.) | | One executive says Microsoft's journey to resilience was a big factor in the decision to build a new product that helps other companies make digital twins of their supply chains. "The pandemic was a huge slap on the face" for many companies, Çağlayan Arkan, vice president of manufacturing industry at Microsoft, said in an interview. "How do you match demand and supply?" The problem accelerated the need for digital twins, Arkan said. Once Microsoft had built such a tool, the company was able to get greater visiblity on SKUs and model how to adapt to disruptions. Read about the journey. | | Stat of the week Cloud technology has been around for a while, but new and cheaper applications are driving further investments. The chart below shows most respondents to the 2021 MHI Annual Industry Report are spending between $5 million and $10 million on the technology. Read the details.  Credit: Edwin Lopez / Supply Chain Dive / data from 2021 MHI Annual Industry Report | | The cost of importing goods is growing these days, as delays at U.S. ports extend transit times. For some companies, like Tempur Sealy, it's more than enough of a reason to grow their investments in domestic production capacity. Over the past year, Tempur Sealy opened three manufacturing facilities and broke ground on another that will be finished by 2023. "We're investing to dramatically reduce our exposure to future supply chain disruptions," CEO Scott Thompson said on a recent earnings call. Go deeper. | | The toymaker is racing against the clock to get products onto shelves this holiday season. Executives on an earnings call highlighted a few of the different tactics it took in Q3 to mitigate delays in product deliveries. One of the approaches had to do with scale and location "to optimize the nearshoring of production," according to the company's CEO. More than 85% of toys sold in the U.S. are typically manufactured overseas. Read more. | Opinion Poll
 Yes No I don't know Other — hit reply and tell us! Have a poll question you’d like to suggest? Let us know! Last week's results are in! We asked: Which factor has MOST slowed your supply chain this quarter? 
26% said congestion at ports; 24% said not enough workers at manufacturing facilities; 20% said limited transportation capacity; 17% said labor shortages at warehouses and distribution centers; and 14% said other. (Figures do not add to 100% due to rounding.) | Quick Hits  Supply Chain Dive
 Forbes
 Supply Chain Dive
 The Wall Street Journal
 Supply Chain Dive Parting thought Location, location, location.
For a long time, that's been the mantra of supply chain network design. Labor, access to transportation and tax incentives all matter when companies choose where to place facilities. And sometimes, picking a new location can take years.
But recent news — of investments in facilities and in infrastructure — has me wondering, are companies expediting their site selection processes to get production up to speed, stat? Or, are we just now seeing the announcements of plans that were already in motion?
If you have any thoughts, I'd love to hear them via email.
Edwin Lopez
Senior Editor, Supply Chain Dive
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