In a recent article, my colleague Henry To provided valuable insights into the transformative shifts occurring in product sourcing. In this blog we explore the evolving landscape of global product procurement, focusing on key trends in both sourcing and supply chain that are steering this revolution.

Trends: Sourcing and Shipment Collaboration

One significant trend emerging from years of observation and industry tracking is the increasing collaboration between sourcing and shipment management processes. Historically siloed, these functions are now converging to unlock upstream and downstream visibility through unified processes and systems. The realisation of increased synergies and cooperation is prompting retailers to seek more cohesive supply chain management solutions.

Trends: Supply Chain Diversification

Supply Chain Diversification has become a focal point of discussions within the industry. Retailers are expanding and diversifying their supply chains, driven by considerations such as risk mitigation, ethical standards, cost and proximity to markets. This shift is drawing attention away from China and bringing other origin countries into sharper focus, increasingly around the Southeast Asia region. Dual sourcing strategies are being implemented, prompting retailers to continually evaluate and procure the best products globally.

Trends: Supplier Relationship Management

Supplier Relationships, historically managed by disparate teams, are now seen as integral extensions of the supply chain. Global brands increasingly view suppliers as partners, emphasising shared values, sustainability goals, transparent pricing and service levels. The shift towards pricing visibility begins at the sourcing stage, where retailers must evaluate suppliers based on true end-to-end landed costs across different markets and shipping scenarios. Apples-to-apples comparisons then enable the selection of the most cost-effective suppliers globally.

Performance management of suppliers is another key aspect of the procurement process. Holistic visibility into supplier performance, spanning both sourcing and purchase order management, is crucial. Now more than ever, retailers demand transparency in areas such as managing estimated vs. actual landed costs and ensuring production and shipping lead times align with targets to support speed-to-market strategies.

How Supply Chain Technology Can Support

Closing the fragmented visibility gap and leveraging collaboration and analytical tools are critical for driving efficiencies in the product procurement process. Emerging technologies like Artificial Intelligence (AI) and Machine Learning (ML) play a pivotal role in harnessing rich data from sourcing and supply chain activities and then transforming it into data-driven insights for effective decision-making.

Why Choose EV Cargo as your Supply Chain Technology Partner of Choice?

At EV Cargo, we stand uniquely positioned to support global brands on this transformative journey. With years of experience in developing sourcing and supply chain technology, we manage supply chains for the world’s leading brands. Under our vision of transforming logistics into a technology-driven industry, we’ve introduced EV Source, a single platform digitalising all retail sourcing processes.

As part of our EV Source offering, the Brief & Quote module equips global brands with the latest technology, facilitating efficient product procurement and collaboration with suppliers worldwide. With EV Cargo as your supply chain technology partner, embark on a journey where innovation meets efficiency, reshaping the future of product procurement.

In summary, our examination of the trends in global product procurement highlights a landscape defined by collaboration, diversification and strengthened supplier relationships. Choosing to embark on a journey with EV Cargo and our technology enabled sourcing solutions, where innovation seamlessly integrates with efficiency, enables global brands to continually enhance all elements of the product procurement process.