The effects of globalization on supply chain resilience: outsourcing techniques as interventionism, protectionism, and regionalization strategies

Abstract

Globalization may cause companies to broaden their customer bases, operate internationally, and serve more customers. However, it also entails dangers, including shifting circumstances, disruptions, and elevated prices. To address these issues, outsourcing has evolved, lowering outputs and service costs. To mitigate these risks, businesses employ strategies such as interventionism, protectionism, and regionalization. By investigating and simulating the interplay of outsourcing approaches to equip businesses with supply chain resilience (SCRES), this study aims to close the knowledge gap between the existing knowledge and global supply chain (GSC) risk management practices. To choose the best alternative for our case study company, we analyzed four distinct outsourcing techniques, namely offshoring, reshoring, nearshoring, and farshoring; furthermore, we investigated the outsourcing elements typically taken into account to achieve resilience. The results indicated that the reshoring method would be the most promising one for this company, under specific circumstances, in terms of attaining resilience in the manufacturing industry.