Skip to main content

McKinsey’s Perfect Storm: Building the Sourcing Model of the Future

The economic benefits of investing in nearshoring and onshoring are clear, but are many of these markets ready to take on this increased production?

The short answer is: no.

In order for these regions to scale up, a cluster-based approach is best suited to help those capacities come alive; unfortunately, there’s no clear answer as to who should be investing in those clusters.

As trade and tariff uncertainty continues to roil the supply chain, McKinsey & Company’s Saskia Hedrich and Karl-Hendrik Magnus shared a window into the nearshoring and onshoring decisions sourcing executives are grappling with—and some of the solutions.

Listen to the podcast to learn:

  • What you should be looking at instead of landed cost
  • Where you can find some of these viable clusters, and where more work is needed
  • Why complexity doesn’t have to be a dirty word
  • How the apparel industry can make itself more attractive to private equity
  • Which postponement strategies aren’t being properly leveraged
  • How to avoid having your timelines disrupted while waiting for raw materials
  • Which new technologies are driving development and competitive advantages
  • How sustainability plays into all of this

Magnus will present the first look at the findings of McKinsey’s & Company’s upcoming sustainability report at Sourcing Journal Summit New York on Oct. 17. Register to attend.