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Introduction and challenges

Over the past few years, companies’ sourcing strategies have evolved significantly. The issues of agility, cash needs, price increases from Asian suppliers and geopolitical uncertainties have changed the paradigm of “all low-cost distant sourcing”. 

Sourcing strategies are now more dynamic with regular updates based on full (or even usage) cost models and must take into account many parameters: non-quality cost, overstock, shortages and/or obsolescence costs, product availability, time to market for the new products, financial, legal and political risks, ethical, environmental and societal image risk.

In some cases, the role and the efficiency of international procurement organisations (IPOs), which are responsible for identifying and developing new suppliers but also for managing the day-to-day needs and interactions between the supplier and the purchasing organisation, must be challenged.

Finally, digital technologies are increasingly useful for both feedback and cost modelling.

How we can help

Argon & Co supports its clients in defining the best location for the products (or services) sourced based on the comparative advantages of each market and the customer’s constraints.

  • Identification of potential suppliers in the selected countries
  • Economic modelling of sourcing strategy options
  • Drafting procedures to guarantee the quality of suppliers
  • The definition of the most efficient supply chain model (logistics network, transport, customs clearance, stock management) to not lose the benefits generated by more advantageous “starting” prices
  • Efficiency of IPOs and sourcing offices
  • The implementation of digital tools to manage sourcing