The sheer quantity of savings available through global sourcing has made the supply chain strategy increasingly popular over the past few years.
With big improvements in global communications and data analytics, and with the previously slow recovery from the 2008 financial crisis finally picking up momentum, 2014 witnessed businesses shift from fiercely protecting budgets to carefully investing in relationships with a view to break open new markets.
With 2015 now upon us, economic indicators across the board continue to improve. And yes, that means there’s every good reason to stay ahead of the curve by knowing the global sourcing trends you can expect to see in 2015.
Increased adoption of global sourcing
Although many large businesses (such as key players in the semiconductor industry) have taken advantage of global sourcing and manufacturing for many years now, small to medium enterprises (SME’s) have only caught on more recently.
It’s still a relatively new phenomenon and, as awareness of the considerable savings on offer continues to spread, we can expect to see more businesses take advantage in 2015.
Last year, and as predicted, SME’s began partnering with qualified, experienced global sourcing specialists and used the savings on offer to leverage growth. This year, and with the global economic situation improving, we can expect more of the same.
Greater competition in overseas markets
In developing countries, global sourcing is largely seen as a business opportunity for the West, but naturally the domestic markets benefit, too. This year we can expect to see countries with strong manufacturing backgrounds (such as Japan) set up in South-East Asian countries to tailor to the needs of the West.
Consequently, there will be greater competition in global sourcing locations such as South America and the ASEAN. China is increasingly seeing global sourcing as an investment opportunity and will continue to establish facilities both at home and in other countries with low labour costs such as Africa.
Increased nearshoring
As the US economic recovery continues and fracking legislation promises the country a much needed cash injection, it’s likely we’ll see many US businesses adopting nearshoring strategies to outsource manufacturing operations to countries such as South America.
With increasing amounts of manufacturing done overseas in developing countries, greater global sourcing opportunities could arise.
Big data tools increased transparency and cost tracking
We’re increasingly move into the world of “big data” with ever more readily available cloud computing services capable of serious number crunching. When combined with the inevitable adoption of the so-called “Internet of Everything”, global sourcing will become increasingly easier to manage for suppliers, buyers and logistics companies alike.
With more accurate tracking capabilities, realising the financial benefits from value chains will become easier, making it simpler to justify the move to global sourcing, further exacerbating its increase in popularity.
A maturing sector
All of the above trends culminate in what could be described as a maturing of an industry. Many factors come together to make global sourcing not only more accessible, but more efficient and potentially with even with bigger savings on the table.
If you’d like to learn more about how to stay ahead of your competition by freeing up cash flow through sourcing globally, contact Mawson Global for a QuickLook Analysis today.