From the past few years, procurement focused on low costs and lean operations, leading companies to rely on a few large partners. Recent global shocks including pandemics and geopolitical tensions have exposed the dangerous fragility of this concentrated approach.<\/p>\n
A research by The Institute of Strategic & International Studies (ISIS) Malaysia<\/a> underscores this urgency, warning that a major disruption to the semiconductor supply chain alone could set the global economy back at least 20 years. As a result, the concept of ‘supplier diversification’ has transitioned from a secondary consideration to a primary strategic imperative for executive leadership.<\/p>\n Supplier diversification involves sourcing from multiple vendors instead of a single source. This builds redundancy, letting a business switch to alternatives if a partner fails due to financial or logistical issues. In this article you will understand the concepts, the risk, and how to find the right solution<\/a> for it.<\/p>\n