The ongoing global logistics disruptions continue to impact businesses, and many of them recognize the need to better equip their supply chains by identifying alternative trading partnerships and developing a broader list of suppliers across the globe.
Businesses are looking for ways to build greater agility and resilience into their supply chains by working with platforms with new capabilities as services. New technologies, such as a consolidated supplier management system, with features to enhance instant communications with suppliers and information about the latest market trends, enable flexibility and better cost control. The outcomes can bring a stronger, more diversified supply chain with greater potential for risk management and resilience in the future.
As the effects of COVID-19 continue to impact global sourcing, how can businesses increase their resilience in the long run? Below are some strategies that leading organizations are rapidly deploying:
Regionalization of Suppliers
Along with the opportunities arising from global sourcing and digital transformation all over the world, the management of a globally dispersed supply chain is highly dynamic. The key concern in dealing with the global supply chain is the location of factories, not only with respect to firms’ owned factories but also the production and distribution spots, as it is difficult to maintain the supply chain if geopolitical conflict intensifies and economic and security risks are taking place. Organizations can regionalize suppliers to create more supply chain flexibility when facing logistic hiccups.
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Global Sourcing
Global sourcing involves buying services, products or materials from suppliers or manufacturers from outside your own country. Although it presents a host of advantages in terms of cost and competitiveness, it also raises a few problems. Finding a reliable supplier overseas can present a challenge, not to mention having to deal with language and cultural obstacles that present themselves. Choosing the right supplier from a competitive geographical location from which to source your products can be difficult, and coordinating a strategy to ensure that products are received in a timely manner is just another issue.
Some well-developed global sourcing platforms with a strong network of verified suppliers that present better quality control should be considered. For instance, Global Sources, which has over 10 million O2O international buyers and suppliers, connects authentic buyers and verified suppliers globally. The platform has launched new features like a 3D VR Showroom to provide a new way to enable immersive virtual factory tours, enabling users to have a 360° view of the plant without long-distance travel. To facilitate close and regular communications, video meetings can be conducted, while the instant chat with translation feature enables on-the-spot communication and facilitates deals by eliminating the language barrier of different markets.
Getting Up-to-Date Insights
Big data analytics uses data and quantitative methods to improve decision-making for all activities across the supply chain. According to a recent Research and Market report, the global supply chain analytics market reached $5.8 billion (USD) in 2021 and the market is expected to reach $15.6 billion by 2027, exhibiting a CAGR of 17.93% from 2021 to 2027.
It is important to find a solution or platform integrated with artificial intelligence, big data and machine learning. Companies may consider leveraging the global sourcing platform to have more precise and customized recommendations for buyers based on preferences and attributes, plus high-demand product ranking for faster and smarter decision-making through big data algorithms. Some of the advanced sourcing platforms have a business matching service for buyers to find suitable verified suppliers swiftly without geographical and language barriers.
Better Value for Money
If a company works in conjunction with a reliable and experienced global sourcing supply chain, it gets much better value for money. For instance, an engineering company may source components such as stamped parts, castings or machine components from overseas suppliers of quality, and by doing so can save money over the cost of sourcing them domestically. The opening up of the global market has meant that businesses can now take advantage of lower labor and manufacturing costs overseas. They can then increase their profits.
Companies should focus on building a network of trusted suppliers to help manage disruptions and support business continuity. By leveraging a reliable global sourcing platform with verified suppliers, an organization can better anticipate, react to and plan for the unexpected and enable cross-functional integration and collaboration with its ecosystem of suppliers.
Carol Lau is SVP of Client Services, Sales Support & Analytics at Global Sources. With more than 20 years of sales operation and senior management experience in sales operations and marketing, she brings unique insight and expertise to her current position, leading various business operational functions including marketing, customer services and Operations and the market intelligence and business analysis. Lau has been responsible for the online business development at Global Sources since 2019, with special focus on driving business results through launching new online products and programs to meet market needs while enhancing customer satisfaction.
