STRATEGIC SOURCING
Q. MANY COMPANIES STRUGGLE WITH BALANCING COMPLIANCE AND COST OPTIMISATION. HOW CAN PROCUREMENT LEADERS MAINTAIN COST COMPETITIVENESS WHILE MEETING INCREASINGLY COMPLEX REGULATORY RESPONSIBILITIES?
» The belief that compliance and cost are in conflict is one of procurement’ s biggest misconceptions. In our experience, compliance done well actually uncovers savings.
For example, APS uses lifecycle costing to assess the total cost of ownership, not just the upfront unit price. A“ cheap” supplier may expose businesses to disruption, recalls or fines that erase any savings. By contrast, compliant suppliers with strong credentials often deliver greater reliability, which reduces hidden costs. We also use risk-adjusted sourcing models. By quantifying and segmenting the cost of non-compliance financial penalties, reputational damage or lost market access, procurement leaders can show boards that cutting corners is far more expensive in the long run, in addition to implementing clear treatment strategies.
Increasingly, compliance itself is becoming a differentiator. Many of our clients win contracts because their transparent, sustainable supply chains are what their customers demand. In that sense, compliance doesn’ t compete with cost, it drives growth. Supplier selection and strategic planning is bespoke to each company and always requires extremely careful consideration.
Q. THE ELECTRONICS INDUSTRY IS HIGHLY GLOBAL AND FAST- MOVING. WHERE DO YOU SEE THE GREATEST RISKS EMERGING WHEN IT COMES TO SOURCING COMPONENTS – AND HOW CAN PROCUREMENT MITIGATE THEM?
» Electronics sourcing is exposed to a unique mix of risks. Geopolitical tensions continue to disrupt access to critical materials such as semiconductors and rare earth materials, while global tariffs and shifting trade policies are adding volatility to costs and lead times, subject to your manufacturing footprint. Labour rights, particularly forced labour in high-risk regions, are under intense regulatory scrutiny. At the same time, climaterelated disruptions like droughts
114 November 2025