Localization strategy improving resilience of supply networks
Trinh, Phuong (2026)
Pro gradu -tutkielma
2026
School of Business and Management, Kauppatieteet
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi-fe20260903122761
https://urn.fi/URN:NBN:fi-fe20260903122761
Tiivistelmä
The recent supply chain disruptions and increasing frequency of uncertainty of the world prompted strategy makers on how their supply chain networks should be re-designed and managed to adapt and retain operation. Localization of supply chain has received strong interest as a potential strategy for more resilience, benefiting from proximity locations as opposed to that in a global supply chain. Such benefits include shorter supply chain, reduced lead time, cost and risks, improved responsiveness and control.
However, supply chain localization has its own trade-offs and limitations with cost competitiveness, supplier availability, and sourcing flexibility. This study examines the concept of supply chain localization in relation to other relevant location decisions as strategies to supply chain resilience from the strategic sourcing perspective.
Empirical findings of this study was collected and analyzed using semi-structure interviews and thematic analysis. The aim is to discover current understanding and practices in enhancing supply resilience of the case company. Special attention was paid to understanding the drivers and barriers of localization strategy, as well as the respondents' perceptions of localization as a response to supply chain risks and its role in improving supply resilience for the case company. In the end, the study found that localization by itself does not guarantee resilience. Although localization helps companies cope with the current uncertainties of the global supply chain, resilience comes from a holistic strategic approach that carefully balances cost, flexibility, and supply chain risks.
However, supply chain localization has its own trade-offs and limitations with cost competitiveness, supplier availability, and sourcing flexibility. This study examines the concept of supply chain localization in relation to other relevant location decisions as strategies to supply chain resilience from the strategic sourcing perspective.
Empirical findings of this study was collected and analyzed using semi-structure interviews and thematic analysis. The aim is to discover current understanding and practices in enhancing supply resilience of the case company. Special attention was paid to understanding the drivers and barriers of localization strategy, as well as the respondents' perceptions of localization as a response to supply chain risks and its role in improving supply resilience for the case company. In the end, the study found that localization by itself does not guarantee resilience. Although localization helps companies cope with the current uncertainties of the global supply chain, resilience comes from a holistic strategic approach that carefully balances cost, flexibility, and supply chain risks.