HCLTECH
Extreme localization sounds right in the current situation . But when you consider the long-term effects , this approach will impact the product cost and fast-to-market product development , and disrupt the trade links and supply chains established over decades . The right equilibrium must exist in balancing localization efforts while improving and tightening globalization principles for promoting economic growth and vital business outreach to break into new markets .
TS : What has driven manufacturers to re-evaluate their sourcing strategies ?
SG : The pandemic and supply chain constraints forced the manufacturing industry to rethink their sourcing strategies , with a focus on finding the right vendors to balance globalization and localization .
Strategic sourcing has pivoted to a new level , digging into all aspects that influence the value of sourcing . The traditional value drivers for strategic sourcing were built on the principles of cost , quality , scale and overall score carding . But the events over the last two years have exposed startling deficiencies . Now the procurement organizations in the manufacturing industry are heavily focused on establishing new baselines aligning toward response , agility , speed , visibility , broader product value chain , risk management , and suppliers who can address resiliency .
Sourcing organizations are also trying to create more outcome-based partnerships where suppliers can take a complete TCO-based approach to defined business outcomes . We at HCLTech are seeing a lot of customers doing some fundamental changes to their strategies toward sourcing on these outlined parameters , but to scale this , the clients are looking for next-gen digital infrastructure and applications to enable their vision .
TS : Is it likely that there will be a strategic approach to combine globalization and localization ?
172 January 2023