-
- News
- Books
Featured Books
- design007 Magazine
Latest Issues
Current IssueThe Designer of the Future
Our expert contributors peer into their crystal balls and offer their thoughts on the designers and design engineers of tomorrow, and what their jobs will look like.
Advanced Packaging and Stackup Design
This month, our expert contributors discuss the impact of advanced packaging on stackup design—from SI and DFM challenges through the variety of material tradeoffs that designers must contend with in HDI and UHDI.
Rules of Thumb
This month, we delve into rules of thumb—which ones work, which ones should be avoided. Rules of thumb are everywhere, but there may be hundreds of rules of thumb for PCB design. How do we separate the wheat from the chaff, so to speak?
- Articles
- Columns
Search Console
- Links
- Media kit
||| MENU - design007 Magazine
Sourcing Diversification – Empowering Your Supply Chain for Success
September 13, 2023 | Lea Maurel, ICAPE GroupEstimated reading time: 2 minutes
In today's interconnected and rapidly evolving business landscape, sourcing diversification has emerged as a crucial strategy for organizations aiming to stay competitive and thrive in a dynamic marketplace. The traditional approach of relying on a single source for procurement is being replaced by a more sophisticated and strategic mindset that emphasizes the advantages of exploring multiple procurement channels. This approach not only opens doors to a whole different network of suppliers, but also offers numerous benefits, such as navigating sales increases, ensuring smoother deliveries, and promoting innovation within the organization.
By embracing sourcing diversification, businesses can proactively adapt to changing market conditions, mitigate risks associated with overreliance on a single source, and tap into a vast array of resources that can fuel their growth and success. In this article, we will delve into the key aspects of sourcing diversification, highlighting its potential to revolutionize procurement practices and elevate business outcomes.
Providing Multiple Procurement Channels
Sourcing diversification encompasses the practice of establishing and nurturing relationships with multiple suppliers and vendors across various geographic locations, industries, and specialties. By expanding procurement channels, organizations gain access to a wider pool of resources and expertise, fostering healthy competition, and enabling negotiation power for better pricing and contract terms.
Navigate Sales Increases
Sudden surges in demand can be a double-edged sword for businesses. While increased sales present growth opportunities, they can strain a single supplier's capacity to meet the heightened demand promptly. By diversifying sourcing channels, companies can distribute their procurement needs across multiple suppliers, ensuring smoother sales growth and preventing potential disruptions or delays.
Smoother Deliveries
Overreliance on a single supplier exposes businesses to various risks, including production bottlenecks, logistical constraints, and unexpected disruptions. By sourcing from multiple suppliers, companies can reduce the impact of any supply chain disruptions and maintain smoother deliveries, enabling them to fulfill customer orders reliably and maintain a positive brand reputation.
Domestic vs. Global Producers
Sourcing diversification provides organizations with the flexibility to choose between domestic and global producers. While domestic sourcing ensures shorter lead times, reduced transportation costs, and supports local economies, global sourcing can offer access to lower-cost materials, specialized expertise, and a broader range of products. Striking the right balance between domestic and global sourcing can optimize cost efficiency and enhance supply chain resilience.
Nearshoring
Nearshoring, the practice of sourcing suppliers from neighboring or nearby countries, offers several compelling benefits that can significantly improve a company's supply strategy and operations.
Continue reading this article in the September 2023 issue of Design007 Magazine.
Lea Maurel is Americas Marketing Manager at ICAPE Group.
Suggested Items
Global Semiconductor Sales Increase 20.7% Year-to-Year in November
01/08/2025 | SIAThe Semiconductor Industry Association (SIA) announced global semiconductor sales hit $57.8 billion during the month of November 2024, an increase of 20.7% compared to the November 2023 total of $47.9 billion and 1.6% more than the October 2024 total of $56.9 billion. Monthly sales are compiled by the World Semiconductor.
Micron Appoints Mike Cordano as Executive VP of Worldwide Sales
01/06/2025 | MicronMicron Technology, Inc. announced it is appointing Mike Cordano as the company’s executive vice president of worldwide sales, effective immediately. Cordano will succeed Mike Bokan, who announced a few months ago his intention to retire from Micron in fiscal 2025 after more than twenty-eight years with the company.
MicroCare Welcomes Greg Gascon as Strategic Account Executive
01/06/2025 | MicroCare, LLCMicroCare, LLC, a global leader in critical cleaning solutions, is excited to announce that Greg Gascon has joined the team as a Strategic Account Executive.
It’s Only Common Sense: Making 2025 the Best Sales Year Ever
01/06/2025 | Dan Beaulieu -- Column: It's Only Common SenseAs we start another year, it’s time to reflect on where we’ve been and, more importantly, where we’re going. The world of sales is not for the faint of heart. It’s high stakes, high energy, and high-pressure situations. However, if you approach it with the right mindset and strategies, 2025 can be the year you shatter records, exceed your wildest expectations, and make a name for yourself.
SCHMID Group Reports H1 2024 Financial Results and Guidance Update
01/03/2025 | SCHMID GroupSCHMID Group N.V., a global leader in providing solutions to the high-tech electronics, photovoltaics, glass, and energy systems industries, reports its unaudited financial results for the first half of 2024, covering the period ended June 30, 2024 and updates its full-year 2024 guidance.