According to UPS, which hired IDC to conduct the fieldwork and analysis, the study is designed to "measure the impact of industry changes and challenges on the high-tech supply chain." The latest installment, covering the Asian market, surfaced some useful although not surprising findings. For one, the study suggests that we'll see a small shift away from China as a sourcing focus in three to five years time. Currently, 66% of respondents report sourcing from the region. This is expected to drop to 64% in the coming years. Sourcing levels coming out of Japan are slated decline further to 46% (from 51%), and the "Mature Asian Pacific" countries, including Thailand, Malaysia, Hong Kong and Singapore" are expected to rise to 50% (from 42%) in the same time period.
Curiously, North American sourcing is also expected to rise during the period, up roughly 40% (from 14% to 19%). In addition, the results are calling for an increasing percentage of regional spend going to developing markets rather than established ones. For example, whereas today, "16% of high-tech companies said they currently source from emerging APAC markets like the Philippines and Vietnam...24% plan to source supplies from these emerging countries in the next 3-5 years." Which perhaps, in part, explains the prioritization of supply risk management as the top supply chain priority for executives in the region -- a topic we'll explore in the next installment of this series.