European companies expanding across borders inherit new suppliers, sourcing models and geographic exposures. In this Expert Insight Video, Giovanni Giacchetti and Tim Figures discuss how this changes procurement, from managing concentration and resilience to accounting for carbon, regulation and country of origin when evaluating suppliers.
This Expert Insight Video discusses:
- How international expansion and acquisitions change supplier networks and geographic exposure
- Why lowest-cost sourcing can create concentration risk, and why resilience has a price
- How carbon costs, local-content rules and country of origin affect supplier evaluation
- What a broader sourcing equation means for procurement and CPO decision-making
Video
Geopolitical Risks in Procurement: Building Resilient Global Supply Chains
When companies expand through acquisitions, they inherit new suppliers, procurement arrangements and geographic exposures. Integration therefore goes beyond rationalizing the existing supplier base. It also raises questions around diversification, concentration and resilience.
Sourcing decisions based on the lowest price can create dependency on a limited number of suppliers, locations or trade routes. Procurement leaders increasingly need to understand where concentration creates exposure and what additional cost the business may be prepared to accept in exchange for greater resilience.
The economics of a sourcing decision can change once carbon-related costs, regulatory requirements and local-content rules are considered. In some categories, evaluating suppliers increasingly means looking beyond the unit price to understand where a product comes from and what that choice means for the wider business.
Procurement is becoming more closely involved in decisions that shape how companies grow and integrate their supply networks. For CPOs and procurement teams, this means bringing a sourcing and supplier perspective into acquisition integration, category strategy and supplier-base design from the outset.
Who are the speakers?
Giovanni Giacchetti is Managing Director at Inverto Italy. Tim Figures is Partner and Associate Director at BCG. In the conversation, Giovanni brings the procurement and European business perspective, while Tim focuses on how geopolitics, trade and regulation are changing the environment in which sourcing decisions are made.
Giovanni Giacchetti
Managing Director
Milan
Tim Figures
Partner and Associate Director at BCG
London
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