Sourcing Market Trends and ESG Compliance Strategies
Summary
➤ Companies experience a more stable supply chain, with less delays and less pronounced cost pressure
➤ China remains a key sourcing market, yet about 30% of respondents indicated plans to relocate at least parts
of their sourcing within the upcoming year. Nevertheless, few other markets offer the same competitiveness,
Southeast Asia and Europe are expected to be increasingly important sourcing locations., and companies
express wish to nearshore to Europe
➤ The key reasons companies are looking at alternative sourcing markets include cost savings, improved
logistics, distribution capabilities, and risk mitigation. The main barriers companies face when entering new
markets include quality risks, insufficient knowledge, and production capability risks.
➤ Companies are more likely to attain and assess data regarding fair labor carbon footprint, pointing to a
with a marked increase in Carbon data collection, less focus on Corporate integrity data and governance
➤ Companies much rely on own factory visits to assess the suppliers' sustainability performance.
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