What Does the Future of Global Sourcing Hold?

In another article from Supply Management's recent focus issue on global sourcing, I encountered this piece that offers up some suggestions on what the future of global sourcing might hold. In addition, it provides some useful context by interviewing practitioners about they're global sourcing experiences today. Consider the case of China, which according to one practitioner, has a future which is "all about its ability to develop its internal market" because otherwise it will stay "too dependent on the West." Another global sourcing leader suggests that his company’s growth is tied to emerging markets, "so by developing your suppliers in those countries you are developing future supply chains that will be used locally." In the future, global sourcing will still come down to cost savings. Consider, "If the Philippines is suddenly 30-50 per cent the cost of China, that is where it will be moving," as one panelist quoted in the article notes. But perhaps most prescient is a point I've tried to hammer home in my Spend Management stump speech at various conferences this year. And that's the future of global sourcing -- and procurement in general -- is about staying out of the headlines as much as it is getting results. As the moderator of the discussion notes, "All that really matters is we don't end up on Panorama/the front page of the Daily Mail." Indeed, staying out of the headlines is what it's all about.

- Jason Busch

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