ARC10TANNIVERSARYGROUP2015-20252025SourcingSurveyDigitalization andSmart Supplv Chainwww.arc-group.com
ARCIo"ANNIVERSARY12025SourcingSurvey|AboutUsARcGROUPARCCroup isaClobalInvestmentBank and Management Consultancy firmdeeply rooted inAsiawithaalobalreachWithapresence acrossAsia,Europe,NorthAmerica, and the MiddleEast, weprovide comprehensivesupport to companies navigating international arowth, operational scale-up, andcomplextransitions.Our intearated services cover strateav consultina. market intelligence, legal and complianceadvisorv.M&Aexecution.capital raisina.and restructurina. We workwith orivate and publicsectorclientsfromSMEs tomultinational leaders.helpina them exoand.invest. and operateeffectivelvAt ARC Group, we pride ourselves on delivering actionable insights and hands-on execution. Ourmultidisciplinary teams combine alobal expertise with local understanding to ensure practicalhigh-impact outcomes. With decades ofexperience in Asia and bevond,. we are atrusted partnerfororganizations aimingtosucceedindynamic andcompetitivemarketsContactdetails1515 Naniina West.OfficeTower2Floor43Jina'an Kerrv Centre Jina'an.Shangha+86-(01-21-340-106-10 I consultina@arc-aroup.comI https://arc-group.com/ourexpertiseCapitalManagementMergers&AssetMarketsConsultancyAcquisitionsManagementTrademarKsCopright @2025. Allightsreserved. ARC Group and the ARCGrouplogo areregistered trademarks ofARCGroupltd.
ARCI0.ANNIVERSARY12025SourcingSurveyIExecutiveSummary2025 Sourcing Reset: Navigating Volatility with Resilient and Reaionally BalancedIn2025,globalsourcingisnolongerdrivenprimarilyby cost eficiency.Companies arefundamentallyreshapingtheir supplychains to manage ongoingdisruption, geopoliticalfraamentation, and rising operational risk. Managing risk and building diversified, regionallybalanced sourcing networks have become core strategic priorities. What began as a reactiveresponse to pandemic-era shocks has matured into a proactive approach focused on resilience,flexibility. and lona-term competitivenessThis year'ssourcinglandscape isshaped byoverlapping pressures.The prolonged conflictin Ukraineand renewed instabilitv in the Red Sea region. including attacks on commercial vessels anddisruptionsto the SuezCanal continueto destabilize trade corridors. Expanded US tariffs. sustainedinflation in energy, labor, and raw materials, and shifting trade policies are driving permanentchanges in cost structures and supply stability. These are now seen as enduring operatingconditions, reauiring distributed and adaptive sourcing models rather than short-term fixesAs a result, companies are shifting away from reliance onany single-countrysourcingmodel. WhileChina remains a global manufacturing anchor due to its unmatched industrial scale, technicaldepth, and integrated supply chains, most are now adopting "China Plus Multiple" strategiesover"ChinaPlusOne"to manace concentration risk while retaining access to China's strengthsSoutheast Asia (Vietnam, Thailand, Malaysia, Indonesia), South Asia led by India), Eastern Europea...
