Global Sourcing 2026 Another year of volatility and change ?
In 2025 we wrote about the challenges that companies will face in their global sourcing strategies, and the mitigation plans they can put in place to ensure their sourcing strategies are working effectively. As we approach the turn of the year the list of challenges has got bigger rather than reducing.
Trade policies, tariff volatility and wider geo-political tensions have continued to put a spotlight on developing a range of new capabilities within wider sourcing strategies.
- Greater emphasis on regionalisation and nearshoring of supply partners
- Adaptive or modular supply chains configurations with multi-market supply partners and regional buffer capabilities
- Active supplier management
- Full supply chain transparency and ESG credentials
Many of the issues facing companies are continuing to stop the smooth flow of global trade and international sourcing. In today’s interconnected world, many businesses are turning to global sourcing to reduce costs and improve efficiency. However, global sourcing also comes with its own set of challenges, such as supplier risk, quality and compliance control, active supplier management and logistical complexities. Navigating these challenges of global sourcing and building a resilient yet agile supply chain by identifying key risk areas, strategies for supplier evaluation and diversification, and best practices for quality control.
Evolving Global Sourcing 2026 Market Landscape
The benefits to business of strategic sourcing globally are huge and have been a foundation for many companies and brands to successfully develop their business. The cost and quality of products in markets remain strong, and not sourcing globally can put companies at a serious competitive disadvantage. Markets such as Apparel and Shoes where China and Vietnam are the dominant manufacturing countries, not manufacturing in these markets can make product prime cost uncompetitive in many markets.
The rolling impacts that once disrupted the smooth flow of global trade — from geopolitical tensions and trade disputes to tariff policies, sanctions, and protectionism — have highlighted the importance of strong, resilient supply chains. Companies must now ensure their supply networks can consistently deliver quality products despite constant external pressures.
The volatile and evolving nature of these challenges has also redefined what resilience means. It’s no longer enough to rely on buzz phrases such as China + 1, nearshoring, or friend-shoring.
Today, a truly effective sourcing strategy requires an adaptive program of regionalization. Modern resilience must address a wide range of internal and external factors — rising inflation, demand volatility, and increasing regulatory scrutiny, especially around Environmental, Social, and Governance (ESG) compliance.
These forces are further shaped by shifting government trade policies and political tensions, making adaptability and strategic foresight more crucial than ever.
Social and environmental risks are now core concerns for procurement teams, with regulations such as the EU’s Corporate Sustainability Due Diligence Directive and US forced labor laws increasing supplier vetting requirements. These factors are consistent across nearshore and offshore sourcing but are often harder to manage when value chains stretch across many miles, time zones, and languages.
ET2C International Strategic Sourcing Specialists
ET2C International are A British owned Global Sourcing company with over twenty four years’ experience partnering with clients to make their sourcing simple. Our team of over 200 colleagues operates from seven offices in key international sourcing markets (China, Vietnam, India and Turkey). Our teams on the ground enable effective strategy execution and active supplier management which is unachievable from thousands of miles away.
We make global sourcing simple, becoming your bridge to supply partners where time zones, language, business communication expectations, or quality control can be challenging.
- Rapidly building margin
- Quality and Compliance control
- Supplier search Validation and Active supplier management
- Risk Management (Reputational and Supply)
- Buying Office model operation
If you want to explore how we can work with you and your teams to secure your supply chain and message us at
Measuring and Managing Reputational and Supply Chain Risk
Effectively managing risk means understanding the diverse elements within your sourcing strategy. Complexity rises as supply chains extend across markets and time zones, with this widening and deepening of supply chains the need to have transparency with your supply partners get harder to achieve. Breaking down risk into core categories helps organisations identify and mitigate them:
- Supplier Evaluation and Selection: Conduct thorough due diligence, assessing track record, reputation, financial stability, production capabilities, quality control measures, and compliance with evolving regulations.
- Supplier Relationship Management: Build trust-based relationships with open communication to foster shared growth vision.
- Diversification of Suppliers: Avoid over-reliance on a single supplier or region, incorporating tri- or quad-sourcing, nearshoring, and regional hubs to mitigate disruptions from geopolitical tensions or natural disasters.
- Risk Assessment and Contingency Planning: Include alternative sourcing plans, backup suppliers, and scenario planning for climate-related and geopolitical disruptions.
- Quality Control and Product Testing: Implement robust processes with regular audits and product testing to ensure compliance and minimize substandard deliveries.
- Intellectual Property Protection: Enforce IP rights via legal agreements and select suppliers who comply with IP policies.
- Compliance and Ethical Standards: Verify adherence to labor laws, environmental regulations, and international standards such as the International Labour Organization conventions.
- Continuous Monitoring and Performance Evaluation: Use digital tools powered by AI and analytics for near real-time supplier performance tracking and proactive risk management.
- Supply Chain Transparency: Map entire supply chains leveraging blockchain and digital platforms to promote ethical sourcing and traceability.
- Stay Informed and Engage Experts: Monitor global market trends, regulatory changes, and geopolitical developments while partnering with industry experts.
Releasing Value and Managing Risk in Global Sourcing 2026
The benefits of a strong global sourcing strategy are clear, but fully realising them with consistency requires planning, skill, and focus. Procurement teams face huge and increasing pressure, making partnerships with trusted sourcing experts critical to avoiding pitfalls while delivering competitive advantages. Managing supply partners effectively cannot be done successfully with a reliance on questionnaires, emails and limited contact. Ensuring that key suppliers are actively managed is crucial to avoid the cost and reputational damage of a supplier failure. The warning signs of an issues can be small and hard to detect without teams on the ground to act as your eyes. Active supplier management can turn transactional suppliers into strategic assets within your international sourcing plan.
Delivering the Benefits of Global Sourcing 2026 and Procurement
Building and executing a global sourcing strategy in 2025 is more critical than ever for building competitive advantage and defending margin. A well-constructed strategy can enable:
- Incremental operating profit
- Short-term capacity build
- Fast product innovation delivery
- Increased market competitiveness
Sustainable results will only be delivered if companies have an effective plan to manage risk. A proactive risk approach secures long term supply and the potential cost or reputational impact of supplier failures.
ET2C International brings over twenty years of expertise, working with our international clients to manage risk and deliver in market execution for sourcing strategies.
For more information or to discuss how we can help you overcome your sourcing challenges and secure your supply chain, please contact us at contact@et2cint.com.
David Young
Position: Group Marketing Director
David W. Young is a recognised thought leader in global sourcing and procurement, sharing expert insights on navigating inflation, managing overheads, and building resilient supply chains. He champions strategic solutions for maximising business value in a volatile world. LinkedIn or david.y@et2c.com.LinkedIn or david.y@et2c.com.
