A Global Shift in sourcing strategy driven by global supply chain disruptions!

It has been challenging years for almost all companies, both small and larger when it comes to supply chain stability. Since the pandemic began back in 2020 and now with a catastrophic war on European soil, things are not as they were.

According to an article from Reuters talking about the global shift in global sourcing strategies more than 64 % of the respondents replied that they want to change their sourcing strategy to gain more flexibility in their supply chain. Developing a reliable, flexible, low-cost and high-quality-focused supply chain has always been important when you develop your sourcing strategy.

But focus on cost optimization tends to dominate the picture. This underlying tendency often results in a one-sided strategy where companies put their eggs into one basket and source the majority within low-cost countries and, to be specific, China.

This change is accelerating due to both experiences post-pandemic, significant changes in the global geopolitical situation, and an increased focus on sustainability.

The solution is not to change the supply chain to a one-sided regional strategy, where if you have your manufacturing located in Europe then you source in Europe only. Due to the importance of designing in a much higher level of flexibility to your supply chain, the need for sourcing is both locally and globally has increased.

Another essential aspect to include into this discussion is the cooperation across the entire value chain. To further strengthen the supply chain, you will need to e.g., involve the R/D function, as sourcing of “simple” components such as connectors, sensors, controllers etc. now suddenly blocking entire supply chains. So early involvement in the design phase or specific cost reduction programs between R/D and the supply chain, to at least create the awareness jointly, is more relevant than ever.

Aegir Wind Solutions can support your company in all aspects of the sourcing process, from developing the global sourcing strategy to the actual implementation. We consider both commercial and quality-related topics, such as the negotiation of Global Purchase Agreements, approval of suppliers, and parts going into production.

So please feel free to reach out to myself or one of my colleagues, for an informal sparring on supply chain challenges.