Regional vs Global Sourcing: Which is the Logistics of the Future?
An outlook with Dr. Stefan Frings
Interview by Despina Borelidis
February 3, 2022
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Casting from China, assembly in Eastern Europe: German industry has long sought international business relationships in the course of globalization. Factor cost differences had to be exploited for this, while on the other hand local sourcing, seemed to be on the decline. In fact, it was even pushed aside as stuffy or "old school".
This was all before pandemics and lockdowns cut supply chains, a hurricane hit Texas and a freighter got itself stuck in the Suez Canal. It suddenly became very clear how vulnerable - and also dependent - German industry is on certain basic materials.
What's more: ESG requirements and climate targets are currently forcing industry to rethink its supply chains more than ever. Long transport routes and international business relationships with "best cost countries" are increasingly being questioned.
What will the logistics of the future look like – and what’s more have to look like? How can the German economy circumvent raw material shortages and fragile supply chains? Where is the innovation potential of the future? And: Will steeple sourcing become a trend again?
An outlook with Dr. Stefan Frings, Partner at enomyc.
Dr. Frings, how dependent is Germany on raw materials from abroad?