Sourcing in Supply Chain: Building Resilience in Asia
27 Jan 20259 min read
Summary
- Global sourcing strategies are being reshaped as companies prioritize resilience and adaptability amid pandemic aftershocks, geopolitical tensions, and trade disruptions. In Asia, long regarded as the world’s manufacturing hub, a shift toward regionalized and localized production—such as the “China for China” model—is redefining how organizations balance cost, efficiency, and risk.
- Different industries are adopting regionalization at varying paces. Automotive and consumer electronics manufacturers are localizing production to strengthen supply chain reliability, while sectors such as textiles and pharmaceuticals are pursuing hybrid approaches due to differences in complexity, infrastructure, and regulatory environments.
- As regionalized sourcing gains traction, it also aligns with growing sustainability goals by reducing transportation distances and promoting efficient use of local resources. However, companies must navigate challenges such as high investment costs, skill shortages, and regulatory variations, making a balanced, hybrid sourcing strategy the most viable path forward for Asia’s evolving supply chain landscape.
Global sourcing strategies have undergone significant shifts in recent years as companies have sought to enhance their supply chains by making them more resilient, regionalized, and adaptable to emerging challenges. The importance of sourcing in supply chain management has become more evident due to the COVID-19 pandemic, ongoing geopolitical tensions, and supply chain disruptions, which have highlighted vulnerabilities in traditional global supply chain models.
Consequently, businesses are reevaluating their sourcing strategies, especially in Asia, which has long been the world's manufacturing hub. A new era has emerged—one focused on "regionalized production" (or "Region for Region"), sourcing closer to customer bases, and creating localized supply chains like "China for China."
While these trends promise increased efficiency, cost reduction, and risk mitigation, they also raise significant questions about the adaptability of various industries to these shifts. Can all types of production and manufacturing accommodate these changes? Are specific sectors better suited to regionalization, or are there inherent limitations? Furthermore, how are sourcing strategies in Asia evolving, and what challenges do companies face as they seek to implement these localized and near-customer models?
Challenges in Implementing Regionalized and Localized Sourcing Strategies
While regionalized production and near-customer sourcing offer significant benefits, they also present challenges that businesses must address.
Members Only Content
To read the full article and access exclusive content, please login or register as a member.
Member Benefits:
- • Full access to all articles
- • Exclusive industry insights
- • Apply Supply Chain jobs in asia