Many companies are looking beyond China to less developed nations for sourcing, says Mark Michaels, chief commercial officer at Damco. Michaels discusses supply chain risks around the expansion into less developed areas and the pressure on providers to deliver service comparable to that in mature markets.
As the global economic landscape evolves and shifts, companies seek out new sourcing locations and growth opportunities in worldwide markets. Global expansion brings about new supply chain challenges and complexity that can vary by market and country. In North America, companies are looking for closer sourcing locations, greater efficiency, and opportunities to grow their export business. Latin America, due to its proximity, emerging market growth, and attractive free-trade agreements (FTA), as well as preferential agreements with the U.S. has made it a desirable trade region.
