STRATEGIC SOURCING

PROPORTION OF COMPANIES WHICH HAVE BOOSTED SUPPLY CHAIN EFFICIENCY VIA STRATEGIC SHORING( KPMG)

PROPORTION OF LEADERS WHO RANK COST AS THE MOST IMPORTANT OUTCOME IN SUPPLY CHAIN STRATEGIES – MORE THAN ANYTHING ELSE

the critical need for resilient supply chains within the Americas, intensifying the existing trend of strategic shoring. Mexico is emerging as a primary beneficiary due to its USMCA membership and strategic location.”

Building the business case for procurement transformation The journey towards regionalisation is not without obstacles. For many organisations, building a compelling procurement transformation business case represents the greatest hurdle.“ Compared to previous exercises, the case for transferring from a global supply chain to a more regional one isn’ t obvious,” Mary acknowledges.“ The move to global had clear labour benefits that far outweighed any additional lead time considerations. Now, while labour has gotten closer to equal, the value of agility has increased.” This shift in value proposition requires new approaches to quantifying benefits.“ That value, while sometimes challenging to calculate, is the case for nearshoring,” says Mary.“ Cutting out lead time reduces risk in the supply chain.” Beyond the business case, implementation challenges abound.

130 June 2025