Are you a global sourcing company who wants to be ahead of the competition? Do you want to know what trends are impacting your business and how to properly adjust your strategy to benefit from them? If so, you’ll want to read this article on the 6 key trends in global sourcing that will have the biggest impacts on business in 2023 and beyond. Let’s dive into these trends now!
Economic Nationalism is on the Rise
Global sourcing companies, China sourcing company need to be aware of the effects of economic nationalism. In the last decade, more countries have turned inward and started protecting their industries by raising trade barriers and implementing protectionist policies. This has led to a reversal in globalization trends which are impacting the global supply chain industry.
The U.S.-China Trade War is Weighing on the World Economy
China’s economy has been cooling since last year. The country’s stock markets have seen a dramatic decline and manufacturing growth has slowed down. China is no longer the engine of global economic growth that it was in previous decades. The U.S.-China trade war is also weighing on the world economy as both countries are major trading partners for many other countries around the world, including the EU, Japan and Canada. This trade war has led to an increase in uncertainty about future economic prospects and how things will play out in terms of global supply chains moving forward.
Brexit is Adding Uncertainty to the Mix
In the past, the UK has been a major trading partner with the EU. If Brexit happens, this will likely change and European businesses may lose access to UK-based global sourcing companies. For example, China sourcing company may not be able to ship goods through UK ports without going through customs first.
It is unclear whether or not Brexit will happen, but it is something that all china sourcing company should be mindful of in order to be prepared if/when it does happen.
Technology is Disrupting Traditional Supply Chains
The emergence of the internet of things (IoT) is disrupting traditional supply chains. Consumer expectations have shifted, and they want faster delivery and a more personalized experience. As a result, global sourcing companies are aggressively seeking ways to digitize their supply chain operations, such as by adopting big data analytics and predictive analytics. This also means that global sourcing companies need to rethink their China sourcing company strategy as more customers demand higher-quality products at lower prices.
Sustainability is Becoming a Key Concern
A new trend that has been on the rise in the past few years is the idea of sustainability. Consumers are demanding that companies take responsibility for their impact on the environment, so it’s no surprise that most companies are making efforts to become more sustainable. With this movement gaining momentum, it’s important for global sourcing companies and China sourcing company to make sustainability a key consideration when supplying goods. In some areas, like garment manufacturing, there is already a consensus on what steps need to be taken. But when it comes to other industries such as electronics production, there’s not as much agreement on how best to proceed.
New Players are Emerging in the Market
The future of sourcing is a hot topic. The global sourcing industry will change dramatically in the next decade and new players are emerging. China sourcing companies have already become major players and emerging markets like India and Southeast Asia will soon be key players as well. With new markets coming on line, global sourcing companies need to consider their strategies in order to continue meeting customer needs profitably.
This is the perfect time for global sourcing companies and China sourcing companies to focus on the six key global supply chain trends that will impact business in 2023.