APRIL 2021 / NO. 2

Does your company perform Sourcing Intelligence?

“The rise of new Grey Swans in Geopolitics between the USA, Russia, Europe and China will force companies to reorganize their supply chains”
“Practical example: In March 2021 you have seen how the blockade of the Suez Canal has weakened supply chains of many thousands of companies”
The economies of the USA, Europe and China are more integrated than ever before. Frictions in geopolitics will lead to more potential conflicts. Think of the US sanctions of Nordstream 2 to Russia, US-sanctions on Iran, public opinion in Europe towards China leading to a boycot in China of Western brands like H&M, Adidas and Nike, the doubts on Huawei and much more. The growing military presence of the US and the UK in the Far East, especially in the East China Sea and South China Sea with the aim to protect their allies Japan, Taiwan, Philippines, Vietnam, Malaysia, Singapore and Australia.
Any potential conflict of interest between the US and China might lead to unforeseen collateral damage with huge consequences in supply chains. Challenge of your management is to start with Sourcing Intelligence of your companies’ supply chains. Consider to monitor your supply chains, 24/7, and get the insights and strategic intelligence answers on:
1. Know where they build and store your parts and raw materials
2. Identify the changes that might increase their risk: company restructurings, M&A, profit warnings and lawsuits
3. Identify where suppliers’ manufacturing and warehouse sites are located and look for geographic diversity
4. Support sole-source suppliers to develop alternate sources
5. Identify the suppliers’ own risk management programs, if any
6. Consider insurance to cover profits lost from disruptive events at critical suppliers’ sites
Your company is perfectly able to identify the weaknesses in supply chains. In addition you are able to boost resilience and avoid disruption. Learn more of strategy and strategic intelligence in our international master class, which is recognized in Europe as the leading training course in strategy & strategic intelligence solutions.
“Better late than never” is frequently quoted by many people. However, in strategic intelligence “never to late” is by far much better”


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