• Advertise
  • Contact Us
  • Supplier Directory
  • SCB YouTube
  • About Us
  • Login
  • Subscribe
  • Logout
  • My Profile
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Parcel & Express
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management (Big Data/IoT/Blockchain)
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Robotics
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Customer Relationship Management
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • Green Energy
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • Sourcing/Procurement/SRM
    • SC Security & Risk Mgmt
    • Supply Chains in Crisis
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Management & Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Warehouse Automation
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • THINK TANK
  • WEBINARS
    • On-Demand Webinars
    • Upcoming Webinars
    • Webinar Library
  • PODCASTS
  • WHITEPAPERS
  • VIDEOS
Home » Blogs » Think Tank » Localizing Your Supply Chain? Consider These Four Tips

Think Tank
Think Tank RSS FeedRSS

Localizing Your Supply Chain? Consider These Four Tips

Fleet Management
A fleet of cargo vans sits in a parking lot. Photo: Shutterstock.
November 28, 2021
Vamshi Rachakonda, SCB Contributor

Over the past year and a half, organizations across industries have had to deal with unprecedented change and interruptions through numerous, massively impactful supply chain events. The Suez Canal blockage in March forced companies worldwide to find alternative routes. The semiconductor chip shortage is still creating substantial delays in the production of cars, as well as smartphones and other high-tech devices. The pandemic continues to create challenges for global shipping, with a geopolitical component that has been difficult for businesses to navigate.

In response, organizations have made supply chain resilience a priority. Many are shifting to localized sourcing. By reducing the time needed for materials to reach their destination, they’re overcoming many of the delays and barriers that have emerged during the pandemic.

The model comes with significant challenges. The transition will take time; companies will need to secure support from key stakeholders, implement the right personnel to handle the shift, and locate the required funding. It’s a major step to take, but for those willing to localize their operations for improved supply chain resilience, here are four actions to consider.

Adopt do-it-yourself manufacturing. Among the first options is to begin manufacturing products in a regionalized capacity. The efficiency and potential cost advantages of a global manufacturing footprint might not outweigh the potential impact of another supply chain disruption. Having products ready to distribute at shorter distances reduces one’s exposure to a crisis. It also decreases the chances that a problem affecting one partner could have negative consequences on the entire supply chain.

This approach comes with added responsibility. Localization means taking on certain responsibilities and resources that were previously borne by a global parts provider. It’s crucial to have support when tackling new responsibilities. Companies should prepare by seeking new partnerships, financial subsidies and specialized training for their teams to gain the necessary skills.

Identify alternative material-sourcing strategies. Companies can also boost supply chain resilience and shorten lead times by identifying local sources for materials. It’s important to note, however, that not all vital products and assets can be sourced locally, and the ones that are available might come at an increased cost. Before committing to an alternative material-sourcing strategy, leaders will have to perform detailed research on the availability, quality and price of local materials, while also identifying potential new partners and suppliers. Ultimately, they must weigh the potential costs and risks before making any decision to change sourcing strategies.

Extend supply chain visibility with real-time market intelligence. Increased supply chain visibility will also be paramount in localization efforts. As companies take on more demanding roles and responsibilities throughout regionalized supply chains, they will require strong market intelligence to optimize operations. By utilizing real-time control towers, equipped with performance data and metrics-gathering capabilities, they can gain valuable insights and protect against future disruptions.

Build your own fleet. Companies can create their own distribution fleets to assert full control over the shipping process. With the ability to transport their own products to customers, they gain supply chain visibility, improve route optimization and decrease lopsided shortages and surpluses. Major U.S. retailers grappling with the recent bottlenecks at America’s largest ports are doing just that, by chartering their own cargo ships. For organizations thinking about creating their own distribution networks, it’s vital to secure both the necessary funding and expert guidance to execute the model correctly.

None of these answers are perfect, and every solution is exposed to the unpredictability of disruptions that come in every form, from localized weather events to economic crashes. But in today’s world of uncertainty, companies can’t just sit back and assume that things will resolve themselves. By taking an active stance and seeking innovative ways to build in supply chain resilience, they can protect themselves from the effects of the next major crisis.

Vamshi Rachakonda is vice president of sales and GTM lead for manufacturing, auto, A&D and life sciences at Capgemini Americas.

Global Supply Chain Management Sourcing/Procurement/SRM Supply Chain Security & Risk Mgmt

RELATED CONTENT

RELATED VIDEOS

Subscribe to our Daily Newsletter!

Timely, incisive articles delivered directly to your inbox.

Featured Product

Popular Stories

  • A LARGE CYLINDRICAL OBJECT SHRINK-WRAPPED IN WHITE PLASTIC IS LOWERED BY CRANE ONTO A FLAT BED TRUCK ON A DOCK

    AI Boom Has European Buyers Paying Extra to Secure Gas Turbines

    Technology
  • 021_what_is_ai_in_warehousing_and_the_supply_chain- (540p).png

    Watch: What Is AI in Warehousing and the Supply Chain?

    Artificial Intelligence
  • TWO WORKERS IN A WAREHOUSE PUSH ROLLING CARTS LOADED WITH BRIGHT BLUE BINS

    Walmart Caps Usage of an AI Tool for Employees After High Demand

    Artificial Intelligence
  • Close-up hands of unrecognizable man holding and using smartphone standing on city street.

    Five Supply Chain Security Risks Hiding Inside Your Mobile Apps

    Supply Chain Visibility
  • Businessman using AI agent system on laptop computer.

    AI in Supply Chain Can’t Succeed Without Foundational Systems

    Artificial Intelligence

Digital Edition

2026 esg cover main scb q2 2026 cover

SupplyChainBrain 2026 ESG Guide: ESG — The Supply Chain’s Biggest Secret

VIEW THE LATEST ISSUE

Case Studies

  • Recycled Tagging Fasteners: Small Changes Make a Big Impact

  • A GRAPHIC SHOWING MULTIPLE FORMS OF SHIPPING, WITH A HUMAN STANDING AT THE CENTER, TOUCHING A SYMBOLIC MAP OF THE WORLD

    Enhancing High-Value Electronics Shipment Security with Tive's Real-Time Tracking

  • A GRAPHIC OF INTERLACING HONEYCOMBED ELEMENTS REPRESENTING GLOBAL BUSINESS TRANSACTIONS

    Moving Robots Site-to-Site

  • JLL Finds Perfect Warehouse Location, Leading to $15M Grant for Startup

  • Robots Speed Fulfillment to Help Apparel Company Scale for Growth

Visit Our Sponsors

4flow Arkieva Blue Yonder
Carton Cloud CoEnterprise Dassault
Duravant E2Open General Logistics Systems
Hy-Tek iGPS Korber
Lyngsoe Procurability Quinyx
SAP Sikick Systech
S&P Global Mobility TADA TransImpact
US Bank Werner Enterprises WSI
  • More From SCB
    • Featured Content
    • Video Library
    • Think Tank Blog
    • SupplyChainBrain Podcast
    • Whitepapers
    • On-Demand Webinars
    • Upcoming Webinars
  • Digital Offerings
    • Digital Issue
    • Subscribe
    • Manage Email Preferences
    • Newsletters
  • Resources
    • Events Calendar
    • 2026 Event Coverage
    • SCB's Great Supply Chain Partners
    • Supplier Directory
    • Case Study Showcase
    • Supply Chain Innovation Awards
    • 100 Great Partners Form
  • SCB Corporate
    • Advertise on SCB.COM
    • About Us
    • Privacy Policy
    • Contact Us
    • Data Sharing Opt-Out

All content copyright ©2026 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

Design, CMS, Hosting & Web Development :: ePublishing