Global sourcing is increasingly in demand in the manufacturing and engineering industries. Companies are more and more asking questions such as “where can I source quality castings and forgings at a more affordable price?”
The answer lies in sourcing from overseas, and as we progress towards 2020, more businesses than ever before are turning to reputable global sourcing companies to help them to boost their competitiveness and profitability in these tough economic times. As a result, the global sourcing sector is going through a host of changes, and here, we look ahead to its future in 2019 and beyond.
Geopolitical Uncertainty Increases Complexity In The Supply Chain
2018 saw a host of tariffs and trade wars which impacted on the global supply chain and economy. Now, in 2019, those effects are shaping up to be far-reaching. Businesses which were lucky enough to escape unscathed last year are now starting to feel the effect.
Tariff engineering is therefore likely to be on the horizon together with increased complexity in the supply chain. This will, in turn, require business leaders to take an increasingly data-led and sophisticated approach to analysing their spending and achieving cost savings.
Being able to predict any potential supply chain disruptions is also becoming more important through 2019, and the need to have suitable alternatives to turn to in such an event is also imperative.
The Move Towards IoT
The IoT (Internet of things) is beginning to revolutionise the way in which companies are doing business. This is set to accelerate throughout 2019 and beyond as retailers, distributors and manufacturers alike look to boost their digitisation so they can deliver even more efficiencies in their supply chain.
Companies which can respond to the latest dynamics will thrive while others will find it harder to survive. Leveraging data allows companies to improve their visibility and to better predict and manage disruptions more proactively.
A Widening Skills Gap
One challenge which has impacted on the supply chain for many years is the skills gap. This is only set to widen further through 2019 and into 2020. There is a lack of talent available within the domestic supply chain sector, with an increasingly ageing workforce and a lack of new blood entering the arena.
For this reason, companies must consider partnering with the best global sourcing companies to seek out reliable overseas suppliers of precision machined components and other key products rather than relying on the domestic marketplace.
Overseas, companies are investing more in their talent pool, and closing the skills gap. Companies which wish to remain competitive and profitable must seek to take advantage of overseas talent.
Partnering With A Reputable Global Sourcing Company
It’s clear that, while global sourcing is on the rise in the engineering and manufacturing industries, there are increasing challenges facing those sectors over the next year. Partnering with a reputable global sourcing specialist like Darian Global Sourcing is the best way to ensure that your business remains competitive and profitable throughout 2019 and beyond. Speak to a global sourcing expert today