Procurement Magazine Sept W1 2026 | Page 70

PROCUREMENT STRATEGY
While sourcing conversations often focus on where products are manufactured, Joe highlights the equal importance on focusing on how sourcing decisions impact the downstream logistics network.“ The‘ hub’ in a typical hub-and-spoke distribution model doesn’ t need to be in close proximity to the plant necessarily,” says Joe.“ It’ s often more important to have a centrally located hub that takes advantage of better transportation lanes and proximity to spoken locations to service end customers.”
Changes in supplier geography affect transportation lanes, warehouse locations, labour requirements, inventory positioning and customer service expectations.
Whether a customer is nearshoring to Mexico, reshoring to the United States or diversifying suppliers globally, Joe says Wagner helps them understand how those decisions translate into physical supply chain requirements.“ Location strategy and supply chain strategy are increasingly becoming the same conversation,” adds Joe.
Similarly, Anand highlights AI and the value it’ s delivering in supporting decisions, including forecast decisions. Value includes combining machine learning with real-time demand signals to detect shifts earlier and reduce avoidable inventory and service issues; automated scenario analysis to quickly quantify the impact of disruptions and compare response options;
70 September 2026