HCLTECH
“ WE HAVE SEEN A LOT OF OUR CUSTOMERS AND SOURCING ORGANISATIONS LOOKING AT MORE OUTCOME-BASED ENGAGEMENT WITH SUPPLIERS ”
SHANKAR GOPALKRISHNAN
connections between regions and opened up more possibilities for manufacturers .
“ Globalization has allowed companies to establish good collaborations between industries and different regions , as well as a trading ecosystem . But I think the challenges that we are seeing today are due to the supply chain issues — as well as the pandemic and geopolitical crises — forcing organizations to look at establishing local ecosystems ,” says Gopalkrishnan .
In this process , stockpiles have been created to maintain some equilibrium to bridge this gap . In this scenario , a business strategy around localization against globalization makes sense .
While the case for localization seems the strongest option for supply chains , Gopalkrishnan also highlights that there are other variables that determine the success of supply chains in the current risk landscape .
Resilience and the health of the supply chain are essential metrics that we need to continue to measure and monitor as we move forward . Localization in the current scenario makes sense , but if you look at it from a long-
174 January 2023