FEATURE Supply chains


LOCALISATION IS THE NEW BLUEPRINT


Here, Maggie Slowik and Andrew Burton, Global Industry Directors for Manufacturing at IFS, show how manufacturers can strengthen localised supply chains in four key business areas, with Industrial AI key to success


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n the wake of global disruptions such as geopolitical tensions, new trade  has become a key strategy to help


manufacturers reimagine supply chains and better prepare for emerging unknowns. But moving production closer to home is not just about where things are made. It now includes how products are designed, sourced, and managed.


Recent geopolitical tensions, such as the   on single-source supply chains. Manufacturing decisions are no longer made based on sourcing the cheapest product, but sourcing what is available. In response, there’s been a strong push for manufacturers to shift from ‘just-in-time’ to ‘just-in-case’ models and to diversify their supplier networks. Now, sustainability regulations mean manufacturers are having ownership over their carbon footprint and taking the necessary steps to decrease their output.   localisation as a top priority. But localisation   and increases in distribution costs along with pivoting to locally-sourced raw materials, made worse by gaps in connectivity and advanced technology that further hinder visibility, tracking, and coordination across new supply chains. Industrial AI is emerging as a key tool to help manufacturers overcome these hurdles


34 November/December 2025 | Automation


 certainly worth it. Even a small investment  chain performance improvements. A recent  to improve resiliency with localisation, and     1) Product design – start by making components easy to source


One of the most overlooked causes of supply chain vulnerability is product design. Highly customised components for instance,  them to single-source suppliers or long-lead-  supply chain disruptions. Manufacturers that simplify product designs by shifting from bespoke to standardised components can open themselves up to a wider pool of suppliers, including those closer to home. Agile automotive manufacturers led by  by making decisions to replace custom chips with more commonly used, multipurpose ones that are found in consumer electronics.  dip in revenue, which saw global car sales   become less dependent on certain critical resources and allowed companies to build more resilient and shorter supply chains.  


LOCALISATION IS THE NEW BLUEPRINT


 in mind and pivot to standardised, modular designs can support faster procurement, reduce lead times, and make it easier to manage inventory, all while enabling quicker responses to shifts in customer demand and raw material availability.


2) Remanufacture to close the loop and turn waste into value As remanufacturing reduces the need  distance transport, it can be a crucial strategy for manufacturers to reduce carbon footprints and supply risk. In fact, the Environmental Protection Agency (EPA) calls out remanufacturing as one of the  impact while conserving resources. Local dismantling and repair centres also bring production physically closer to the consumer, which creates regional loops that are more sustainable and responsive. Research estimates that the European


remanufacturing industry is on track to   to keep costs low. But this barely scratches the  manufacturing companies. When manufacturers add Industrial AI  remanufacturing processes becomes tenfold. Industrial AI can assess which components are reusable, match recovered parts to new production needs, predict failures to improve recovery planning, identify the shortest  can use one company’s waste as their raw material. When it comes to core forecasting, Industrial AI tools can even help s reduce 


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