When did you last take a hard look at your suppliers?

I began my career in procurement at IBM—long enough ago that the global supply chain looked very different. Back then, high-tech innovation came from the US or Japan, and China wasn’t on our radar.

But the world has changed, hasn’t it?

🔹 In 2023, China filed 1.64 million patents globally, dwarfing the 518,000 filed by the US.

🔹 It also led international patent filings (PCT) with 69,610 applications, compared to 55,678 from the US.

🔹 Huawei, despite sanctions, was the top corporate filer, with nearly 6,500 patents.

So, is China just a manufacturing powerhouse, or are we fully recognising its status as an innovation leader?

Are we keeping pace with how our perceptions evolve? Or are we still viewing emerging economies like China through outdated lenses?

leadership means challenging assumptions

Leadership requires us to challenge assumptions—not just about our organisations, but about the partners and economies we rely on. Businesses that fail to adapt risk losing out on competitive advantages.

Consider Apple. Once entirely dependent on Chinese manufacturing, it has since diversified its supply chain to include India and Vietnam. This is not just about cost—it is about resilience, risk management and recognising shifting dynamics in global trade.

Tesla provides another example. While the US remains its largest market, its Shanghai Gigafactory now plays a central role in both production and innovation. Tesla’s strategy acknowledges that China is not merely a low-cost hub but a key player in the future of automotive technology.

adapting your procurement strategy

What does this mean for procurement leaders? It means re-evaluating our supplier relationships, not just in terms of cost but in terms of innovation potential.

🔹 Are we sourcing from the best, or just the most familiar?

🔹 Are we limiting our options due to legacy perceptions?

🔹 Are we prepared for geopolitical and economic shifts that could impact our supply chains?

In today’s landscape, agility matters more than ever. The companies that thrive will be those that recognise where true value lies—not where it was ten years ago, but where it is today and where it will be tomorrow.