Mastering Challenges, Seizing Opportunities
Asia Sourcing as a Strategic Lever
In our increasingly globalized world, procurement plays a crucial strategic role. Discussions and exchanges with the procurement community reveal that Asia Sourcing offers significant potential but also comes with a range of challenges. This article summarizes key insights and current trends in Asia Sourcing, which expose both risks and opportunities.
Local Teams and Stakeholder Management as Success Factors
One of the central insights is the importance of local teams. On-the-ground procurement professionals, combined with Supplier Quality Engineers (SQEs), are the backbone of successful global procurement strategies. They bridge the gap between plant requirements and local suppliers, ensure quality, and coordinate supply chains efficiently. At the same time, strong internal stakeholder management is essential to align technical departments, quality management, and leadership towards a common goal.
Balancing Cost Pressures and Risks
Cost savings remain a major driver for Global Sourcing, particularly in Asian markets such as China, Southeast Asia, and India. However, discussions reveal that price cannot be the sole criterion. Factors like Total Cost of Ownership (TCO), geopolitical risks, and supply chain stability are becoming increasingly important. Examples such as non-functional door systems from Asia, despite attractive prices, highlight that quality and risk should not be underestimated.
Diversification and “Local-for-Local” as Risk Management
Geopolitical tensions—especially the dependence on China—underscore the need for diversification. Markets such as India, Southeast Asia, or Turkey are becoming increasingly attractive as alternative sourcing destinations. Simultaneously, there is a growing trend towards “Local-for-Local” production: local sourcing for local markets reduces risks and aligns companies more closely with customer needs.
Innovation and Agility: Asia on the Rise
While Europe often faces innovation barriers and limited government support, Asian markets excel in flexibility, speed, and support programs. Asian companies have leveraged profits in their home markets to invest in modern technologies, making them serious competitors in Europe. European companies need to confront these challenges with targeted innovation strategies.
Managing Supply Chain Complexity
A resilient supply chain is key to successful procurement. The combination of multi-supplier strategies, secondary suppliers in Europe, and optimized logistics concepts is crucial. A clear view of the entire supply chain and comprehensive risk management are essential to ensure stability.
Market Access for Asian Competitors: The New Reality
Asian manufacturers, especially from China, have utilized their technological advantage in their home market to make inroads into Europe. Through “entry points,” they put European companies under pressure to secure their competitiveness by leveraging both local strength and global networks.
Conclusion: Procurement as a Strategic Key
Insights from exchanges with the procurement community show that Global Sourcing is not just a matter of price, but also of strategy, quality, and innovation. Procurement is more central than ever to value creation—whether through optimizing supplier structures, managing global teams, or developing risk and diversification strategies.
It is clear that to remain competitive in today’s world, one must think globally, act locally, and adapt flexibly to new conditions.
Question to the Readers:
Which strategies do you employ to master challenges in Global Sourcing? Let’s continue the discussion!
Author: Dr. Stephan Hofstetter, Partner, Kloepfel Consulting
Contact:
Kloepfel Group
Damir Berberovic
Tel.: 0211 941 984 33 | Mail: rendite@kloepfel-consulting.com