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62 DESIGN007 MAGAZINE I SEPTEMBER 2023 Providing Multiple Procurement Channels Sourcing diversification encompasses the practice of establishing and nurturing rela- tionships with multiple suppliers and vendors across various geographic locations, industries, and specialties. By expanding procurement channels, organizations gain access to a wider pool of resources and expertise, fostering healthy competition, and enabling negotiation power for better pricing and contract terms. Navigate Sales Increases Sudden surges in demand can be a double- edged sword for businesses. While increased sales present growth opportunities, they can strain a single supplier's capacity to meet the heightened demand promptly. By diversifying sourcing channels, companies can distribute their procurement needs across multiple sup- pliers, ensuring smoother sales growth and preventing potential disruptions or delays. Smoother Deliveries Overreliance on a single supplier exposes businesses to various risks, including produc- tion bottlenecks, logistical constraints, and unexpected disruptions. By sourcing from multiple suppliers, companies can reduce the impact of any supply chain disruptions and maintain smoother deliveries, enabling them to fulfill customer orders reliably and maintain a positive brand reputation. Domestic vs. Global Producers Sourcing diversification provides organiza- tions with the flexibility to choose between domestic and global producers. While domes- tic sourcing ensures shorter lead times, reduced transportation costs, and supports local econo- mies, global sourcing can offer access to lower- cost materials, specialized expertise, and a broader range of products. Striking the right balance between domestic and global sourcing can optimize cost efficiency and enhance sup- ply chain resilience. Nearshoring Nearshoring, the practice of sourcing sup- pliers from neighboring or nearby countries, offers several compelling benefits that can sig- nificantly improve a company's supply strategy and operations. • De-risking the supply strategy: Near- shoring allows businesses to reduce their dependence on a single supplier or region. By diversifying their supplier base across different regions, companies can minimize the impact of potential disruptions caused by political instability, natural disasters, or other unforeseen events, thereby ensuring a more resilient supply chain. • Same time-zone advantage: One of the key advantages of nearshoring is the shared or overlapping time zones between the company and its suppliers. is synchronicity facilitates real-time communication, quick decision-making, and smoother collaboration, leading to increased efficiency and reduced delays in the supply chain. • Reduced lead times: With suppliers located nearby, nearshoring enables shorter transportation distances and faster delivery times. e reduced lead times enhance the company's ability to respond promptly to changing market demands and minimize inventory holding costs,