A company’s value rests, in large part, with its suppliers. For example, over 50% of the value creation in manufactured products comes from suppliers. Your ability to collaborate effectively with the suppliers you have, while quickly onboarding new suppliers, is essential to driving competitive advantage in good times and being resilient when times are tough.
But there are challenges. The global pandemic is the ultimate example of what happens when companies in certain industries don’t have visibility beyond tier 1 suppliers and can’t quickly onboard new suppliers to address unpredictable but urgent business needs. This new reality is spurring many companies to reassess the balance between globalization and localization across their supply chain ecosystem.