Strategic Shift in Asian Procurement – Focus on Resilience and Future Markets

At the 59th Symposium for Procurement and Logistics hosted by the Federal Association for Materials Management, Procurement, and Logistics (BME), Mathias Alt, Managing Partner and Founder of GetAhead, partnered with Jürgen Matthes from IW Cologne to present:

“Strategic Shift in Asian Procurement: Understanding the New Trade System, Unlocking Future Markets, Implementing Resilience.”

Presented in the Executive Forum, the topic resonated strongly with a distinguished audience. The session highlighted the significant challenges procurement and logistics will face in 2025 regarding risk prevention and supply chain resilience.

De-Risking in Procurement: Challenges and Solutions

Six years after the first trade conflicts began, de-risking efforts have stagnated. The Executive Forum at GetAhead identified the core issues and proposed actionable solutions:

Hidden Risks in Global Supply Chains

Research by Jürgen Matthes revealed that risks extend beyond direct imports from China, which account for only 2.2% of Germany’s intermediate goods.

The real vulnerabilities lie deeper within the multi-tier supply chains.

Lack of Government and Corporate Collaboration

To date, systematic cooperation between governments and businesses to advance de-risking has been minimal. However, companies urgently need:

Targeted government support

Collaborative initiatives to establish resilient and stable supply chains.

Strategic Realignment: Beyond De-Risking

A paradigm shift in supplier network structures is necessary, moving beyond traditional de-risking. After 30 years of global free trade, realignment along geopolitical boundaries is becoming essential.

Key factors include:

Erosion of WTO influence: The WTO, once a symbol of free trade, is increasingly sidelined.

Secondary sanctions risks: Companies face penalties for certain trade relationships, making strategic procurement adjustments critical.

Key Factors for Building Resilient Supply Chains

Resilience is not achieved overnight. It requires a multi-step approach:

Supply Chain Mapping: Creating transparency across all supply chain tiers.

Prioritization: Identifying the most significant areas of potential loss.

Targeted Realignment: Optimizing procurement strategies for long-term stability.

Developing Local Suppliers: Investing in regional supplier networks.

Government Support: Leveraging subsidies and state programs based on company data.

These factors stem from GetAhead’s extensive project experience and research conducted by the German Economic Institute.

 

Specific requirements?

We look forward to assisting you in sourcing and qualifying new suppliers in Southeast Asia, India, and Japan.