The World Economic Forum (WEF) Annual Meeting 2024 will convene leaders from government, business, and civil society to address the state of the world and discuss priorities for the year ahead. 

The event is taking place at a moment of ‘polycrisis,’ a coming together of multiple crises:

1. Climate and biodiversity 
2. COVID-19 pandemic reset  
3. War in Ukraine 
4. War in Gaza 
5. Cost-of-living 

A little under two weeks the event will bring together over 2,500 heads of state and government, business CEOs, civil society representatives, global media and youth leaders from Africa, Asia, Europe, the Middle East, Latin America and North America to work together to rebuild trust and shape the principles, policies and partnerships needed to meet the challenges of 2024. 

Delivering the ambition of ‘Rebuilding Trust’ the agenda will have four core pillars 

1. Security and Co-operation in a fractured World  
2. Creating Growth and Jobs   
3. AI as a driving force for the Economy and Society 
4. Long term Strategy for Climate, Nature and Energy 

We look forward to an interesting series of meetings and progress in delivering these ambitious targets. 

The Annual Meeting will provide a platform to engage in constructive, forward-looking dialogues and help find solutions    through public-private cooperation. 

As the calendar flips and New Year’s celebrations begin, many of us in the world of Sourcing and Procurement can’t help but glance into the crystal ball. What challenges and opportunities will 2024 hold?

Revealing Insights: Sourcing and Procurement Trends 2024

At ET2C International, we believe in the power of collective insights, and we thought that a good way to tap into the wealth of knowledge is to conduct a poll within our network. On our LinkedIn profile, we asked our community what they expected to be the biggest challenges in managing their supply chains in 2024.

From the questions we posed, we’ve gained valuable insights that reflect the diversity of perspectives within our community. We are excited to share the results of this poll:

There was a degree of consistency in the topics that were of most concern to Procurement and Sourcing teams in the coming year.

1. Building supplier relationships(40%)
2. Increasing resiliencein supply chains (40%)
3. Assessing/Managing Risk(20%).

Let’s delve into these critical aspects shaping the heartbeat of our operations :

Supplier Relationships: Developing effective sourcing partnerships (40%)

At the heart of every successful supply chain lies a network of dependable suppliers. The relationships we forge with these partners extend far beyond transactions; they are the bedrock of our success. Nurturing strong supplier relationships involves clear communication, mutual understanding, and a commitment to shared goals. It’s about more than just products; it’s about creating a collaborative ecosystem where trust is the currency. When we invest time in understanding our suppliers’ capabilities, challenges, and aspirations, we lay the groundwork for enduring partnerships that stand the test of time.  Our suppliers are integral contributors to our shared success. The pandemic underscored the fragility of global supply chains. 2024 will be about nurturing deep, reliable partnerships with suppliers. This goes beyond mere price negotiations – it’s about transparency, collaboration, and building trust.

Consider diversifying your supplier base, investing in communication channels, and co-creating innovative solutions. Strong relationships will be the bedrock of resilience in the face of future disruptions. Nurturing these partnerships can lead to not only operational efficiency but also innovation and shared success.

Building Increased Resilience: Preparing for any Future Supply Chain or Trade Turmoil (40%)

Resilience has become synonymous with adaptability, and in the face of a rapidly evolving business landscape, the need for increased resilience in sourcing and procurement cannot be overstated.

In a world where uncertainties are the only constant, resilience is not just an asset; it’s a necessity. The ability to adapt, recover, and thrive in the face of disruptions is a hallmark of a resilient supply chain. To bolster our resilience, we must first identify vulnerabilities. Are there single points of failure? How can we diversify our sourcing strategies? By addressing these questions, we lay the foundation for a more resilient supply chain. Building resilience involves fortifying supply chains, diversifying sourcing strategies, and implementing robust contingency plans. The goal is not just to weather storms but to emerge stronger from them.

Assessing and Managing Risk:  Navigating potential global supply chain risks (20%)

In a dynamic and interconnected global market, the ability to assess and manage risks has become paramount. From material shortages to cyberattacks, risk is a constant companion in Procurement. In 2024, it’s imperative to develop sophisticated risk assessment and mitigation strategies. Procurement professionals must cultivate agility and resilience to navigate through uncertainties and proactively address potential disruptions in the supply chain.

ET2C International is an Expert in Sourcing and Supply Chain

ET2C International has for over twenty years played a crucial role connecting global brands and companies with sourcing partners. Our expertise in global sourcing and supply chain can make sure you get all the benefits of sourcing from China and Asia without any of the risks.

Our 250 colleagues are based in offices in seven key Asian sourcing markets to make your global sourcing simpler. Where language, time zone or business communication practices can make things difficult, our team will be your bridge to your suppliers.

Our team of experts can help you navigate through these challenges. Giving you independent feet on the ground and confidence with fast responses, removing time zone and language challenges.

Embarking on a New Chapter: Preparing for the Future of Supply Chain 2024

As we gaze into the future, these challenges will shape the narrative of sourcing and procurement. let’s remember that challenges are opportunities in disguise. The resilience to adapt, the foresight to manage risks, and the commitment to ethical supplier relationships will undoubtedly define success in the evolving landscape. As procurement professionals, embracing these challenges is not just a necessity but an opportunity to drive positive change and innovation in the sourcing arena.

These are not just business imperatives; they are the cornerstones of enduring success. By working together, sharing insights, and embracing continuous improvement, we can build a supply chain that not only weathers the storms but emerges stronger on the other side. Here’s to stronger partnerships and a future-ready supply chain! By nurturing strong supplier relationships, bolstering our resilience, and proactively managing risks, we can navigate the uncertainties of 2024 and emerge stronger, more sustainable, and ultimately, more successful.

We all hope to the fellow Procurement professionals a year of collaboration, agility, and building supply chains that are not only efficient but also resilient, mindful, and ready for whatever the crystal ball reveals.

If you would like to explore any of these topics in more detail or see how you could manage these challenges more effectively please don’t hesitate to contact us at :  contact@et2cint.com

Note: The percentages represent the poll results indicating the perceived significance of each challenge.

The agricultural industry is undergoing a technological revolution, driven by the increasing adoption of drones and Unmanned Aerial Vehicles (UAVs). These versatile tools are transforming the way farmers monitor, manage, and optimize their crops, offering a range of benefits that enhance productivity, profitability, and sustainability.

Revolutionizing Crop Monitoring and Management

Drones equipped with high-resolution cameras and sensors provide farmers with an unparalleled view of their fields, capturing detailed data on crop health, nutrient deficiencies, irrigation needs, and pest infestations. This real-time information enables early detection of problems, allowing for timely intervention and corrective measures.

One of the most significant applications of drones in agriculture is precision agriculture, a data-driven approach that optimizes resource allocation and minimizes environmental impact. By analysing drone-collected data, farmers can create precise maps of their fields, tailoring fertilizer and pesticide applications to specific areas, reducing waste and minimizing harm to non-target organisms.

Enhancing Productivity and Profitability

The adoption of drones is leading to a significant increase in agricultural productivity. By enabling early identification of problems and targeted interventions, drones help farmers reduce crop losses due to pests, diseases, and nutrient deficiencies. This translates into higher yields and improved profitability.

Moreover, drones contribute to cost savings by streamlining various agricultural tasks, such as field inspections, irrigation monitoring, and inventory management. The efficiency gains resulting from drone usage allow farmers to focus on more strategic aspects of their operations.

Early Adopters: Pioneers of Drone Technology in Agriculture

Several forward-thinking farmers are at the forefront of adopting drone technology, reaping the benefits of improved crop health, increased productivity, and reduced costs. These early adopters are paving the way for wider adoption across the agricultural industry.

One notable example is the use of drones for precision spraying. By targeting pest infestations with pinpoint accuracy, drones reduce pesticide use by up to 90%, minimizing environmental impact and protecting beneficial insects. This approach has been particularly successful in organic farming, where strict regulations limit the use of synthetic chemicals.

ET2C International Sourcing Experts for twenty years

ET2C International has for over twenty years played a crucial role connecting global brands and companies with sourcing partners. Our expertise in global sourcing can make sure you get all the benefits of sourcing Robotics, Industrial and Agricultural products from China and Asia without any of the risks.

Our 250 colleagues are based in offices in seven key Asian sourcing markets including to make your global sourcing simpler. Where language, time zone or business communication practices can make things difficult, out team will be your bridge to your suppliers.

At ET2C our history of delivering the benefits of global sourcing to our clients enables businesses to quickly and easily connect with factory partners who can deliver your product requirements and importantly your quality and compliance requirements.

Latest Advances and Expected Innovations in Agri Drones and UAV’s

Drone technology is rapidly evolving, with new advancements and innovations constantly emerging. One of the most promising areas of development is the integration of artificial intelligence (AI) and machine learning (ML) into drone systems. AI-powered drones can analyse and interpret data in real-time, providing farmers with actionable insights and enabling automated decision-making.

Another exciting development is the use of drones for autonomous tasks, such as crop dusting and irrigation. Autonomous drones can operate independently, freeing up farmers’ time and allowing for continuous monitoring and intervention. This technology has the potential to revolutionize agricultural practices, particularly in large-scale operations.

Conclusion: The Future of Agriculture with Drones

Drones and UAVs are poised to play an increasingly transformative role in the future of agriculture. Their ability to provide real-time data, enable precision agriculture, and automate tasks will significantly enhance productivity, profitability, and sustainability across the industry. As drone technology continues to evolve, farmers can expect even more innovative and effective applications that will revolutionize the way they manage their crops and feed the world.

If you would like to learn more about global sourcing of drones and UAV’s for agriculture please drop us a line at contact@et2cint.com

China and Asia sourcing, building competitive advantage. Learn how working with a global sourcing specialist can help your startup or e-commerce business gain a competitive advantage in the global marketplace

China and Asia sourcing, building competitive advantage

There is no doubt that China has become the manufacturing hub for the world. With its vast labour pool and manufacturing capabilities, China has been able to offer lower prices and higher quality products to businesses all over the world. For many categories not dealing with China can put your company or brand at a distinctive disadvantage versus your competitors.

Many companies have spent time looking to build a China+1 sourcing strategiy or remove China entirely from their supply chains. However, this is proving very difficult to achieve as many alternative sourcing destinations are either much more costly or have a factory base with high levels of Chinese investment.

China and Asian sourcing markets are the only solution for many companies but the complexity of dealing with supply partners in a distant time zone are many and varied and can create huge supply risk.

The challenge of sourcing from Asia-finding a balance of Risk v Reward

For smaller companies or start ups, working directly with Chinese factories can be a daunting task. Whilst the competitive benefits of Global sourcing especially from China are well known and recognised There are many challenges that smaller companies face when dealing directly with Chinese factories, such as language barriers, cultural differences, and complex legal and regulatory requirements, time zones and business communication expectations.

These can sometimes prove insurmountable in their complexity and leave companies without product or with product that does not meet their quality and compliance standards.

Global Sourcing companies adding value to your business

Sourcing companies can help businesses overcome these challenges and ensure that their procurement process is efficient, effective and compliant. A sourcing company can act as a middleman between a business and a Chinese factory, and can provide a range of services, such as:

• Identifying and vetting a range of potential suppliers
• Negotiating pricing and terms
• Managing the supply chain
• Ensuring product quality
• Handling logistics and shipping
• Ensuring transparent and smooth communication between client and chosen factory partner

By working with a sourcing company, smaller businesses can free up their time and resources to focus on other areas of their business.  Particularly the brand focusing on consumers, clients and demand generation. They can also benefit from the expertise and experience of a sourcing company, which can help them to avoid costly mistakes navigating the Asian supply markets.

Quality and Compliance Issues a major sourcing and supply issue

One of the biggest challenges that smaller companies face when working directly with Chinese factories is ensuring product quality and compliance. It also the area that will damage sales and brand reputation if it goes wrong in your sourcing.

Chinese factories are notorious for their copycat products and poor-quality control. A sourcing company can help to mitigate these risks by conducting audits of Chinese factories and ensuring that they meet your quality, ethical and social standards.

In addition to quality concerns, smaller companies also need to be aware of the complex legal and regulatory requirements for doing business in China. A sourcing company can help to ensure that businesses comply with all applicable laws and regulations, including those related to product safety, labour practices, and environmental protection.

ET2C International Global Sourcing and Procurement specialists

ET2C are a leading Global Sourcing company with over twenty years’ experience working with our clients. Our team of 250 colleagues are based in seven offices in key sourcing markets across Asia Including three offices in China in key provinces.

We work with our clients to make their global sourcing simple, becoming their bridge to their supply partners. Where time zones, language, business communication expectations or QC can become challenging.

Our team of experts can help you build and deliver your sourcing strategy and ensure you are working with the right factory partners. Giving you independent feet on the ground and confidence with fast responses, removing time zone and language challenges. If you would like to explore sourcing opportunities within China or any Asian market or to discuss your future supply chain challenges. Please contact@et2cint.com

Benefits of Working with Global Sourcing Companies

There are many benefits to working with a sourcing company, including:

• Increased efficiency: Sourcing companies can manage the supply chain and handle logistics and shipping, freeing up businesses to focus on other areas of their operations.
• Improved quality control: Sourcing companies can conduct audits of Chinese factories and ensure that they meet quality standards.
• Reduced risk: Sourcing companies can help businesses to avoid costly mistakes and comply with all applicable laws and regulations.
• Cost savings: Sourcing companies can often negotiate lower prices with Chinese factories than businesses can on their own.

How to Choose the right Global Sourcing Company to partner with

When choosing a sourcing company, it is important to do your research and choose a company that has a proven track record and that you can trust. You should also make sure that the company has experience in your industry and that they are familiar with the Chinese market.

Conclusion : Sourcing companies can be a valuable asset to smaller businesses that are looking to procure products from China. By working with a sourcing company, businesses can save money, improve efficiency, and reduce their risk.

Here are some additional tips for smaller companies that are working with sourcing companies:

• Be clear about your needs and expectations.
• Communicate regularly with your sourcing company.
• Monitor your sourcing company’s performance.
• Be prepared to negotiate.
• Don’t be afraid to change sourcing companies if you are not satisfied.

By following these tips, smaller companies can ensure that they are getting the most out of their relationship with a sourcing company and that their procurement process is efficient, effective and compliant.

Summary the value of sourcing companies to grow your business

Many start up companies and emerging brands source products and components from China and other Asian markets. In many cases not sourcing from China can put you at a severe competitive disadvantage.

Whilst the benefits are very clear what can be challenging is the complexity, language and time zone barriers and ways of working that are part of a global sourcing strategy.

Using a sourcing specialist company can ensure you mitigate any potential risk, build supplier relationships and have total visibility on supply chain.

Enabling you to concentrate on growing demand in your home markets

If you would like to know more about global sourcing or managing and mitigating risk in your supply chain please drop us a a line at contact@et2cint.com we will be happy to talk you through our experience and case studies.

There are several factors driving this trend. Consumers are more aware than ever of the social and environmental impact of their purchasing decisions, and they are demanding more from the companies they do business with. Businesses are also facing increasing pressure from investors and regulators to adopt more sustainable practices. This is reflected in their need for their strategic sourcing plans to be grounded in a clear understanding of the environmental impact of their supply chain decisions. For many sourcing and procurement teams this additional complex workload is creating both pressure on time to deliver but also stretching skills sets into a new and complex area. Companies both large and small are reaching out to Global Sourcing specialists to support their journey towards more ethical sourcing.

In response to these pressures, and the need to deliver corporate sustainability and environmental commitments many B2B companies are adopting ethical and environmental sourcing policies. These policies can cover a wide range of issues, such as labour rights, environmental sustainability, and human rights. As

Challenges to overcome in delivering an Ethical sourcing strategy

However, there are also some challenges that B2B companies must overcome in order to successfully implement ethical and environmental sourcing strategies. These challenges include:

• Identifying and vetting suppliers. It can be difficult to find suppliers that meet the company’s ethical and environmental standards. Especially when your supply chain can be spread over several countries and thousands of miles
• Measuring and tracking progress. It can be difficult to measure the impact of ethical and environmental sourcing initiatives. Over reliance on questionnaires can lead to frustration across your supply chain and “form fatigue”
• Gaining buy-in from stakeholders. You will inevitably encounter a range of levels of support to your ambitions in ethical and environmental sourcing initiatives.
• Managing costs. Ethical and environmental sourcing practices can sometimes be more expensive than traditional sourcing practices.
• Communicating effectively. It is important to communicate the company’s ethical and environmental sourcing policies to both internal and external stakeholders.

Despite these challenges, the benefits of ethical and environmental sourcing are clear. B2B companies that can overcome these hurdles will be well-positioned for long-term success.

ET2C International Sourcing Strategy Experts for twenty years

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