Impact of Local-Sourcing versus Global-Sourcing on Supply Chain Resilience during Geopolitical Crises

The study explored the effect of local sourcing and global sourcing on supply chain resilience during geopolitical crises and assessed how sourcing strategies affect operational continuity, procurement stability, transportation efficiency, supplier reliability, and organizational adaptability under geopolitical uncertainties. According to the study's results, geopolitical events like trade wars, economic sanctions, wars and conflicts, border closures, and political instability have a significant influence on the modern supply chain system and pose most serious operational problems to organizations that rely on globally distributed procurement networks. This study found that local-sourcing positively affects supply chain resilience in terms of dependency on transportation, coordination of suppliers, flexibility of operations and exposure to supply chain disruption in uncertain geopolitical situations. There was a strong sense that regional procurement systems are more stable and responsive during crisis situations, as local suppliers allow for quick communication, short lead times and continuity of operations. At that same time, the study also highlighted that global-sourcing offers valuable benefits including access to a wider supply base, better market competitiveness and lower procurement costs. In spite of all these advantages, world sourcing makes the organization weaker to disruptions in the international, customs delays, transportation interruptions and geopolitical instability. This indicates that excessive reliance on sourcing in any one country should be avoided and a more diversified or hybrid sourcing framework that features a balance of resilience, flexibility and cost-effectiveness should be selected. In addition, the study finds that supply chain resilience is no longer just an operational issue, but a proactive strategic organizational one that must be addressed with risk management, supplier diversification, and flexible sourcing practices. Future research may extend analysis to discuss larger populations, international comparisons, and industry-specific analyses in sectors like automotive production, electronics, pharmaceuticals, and retail supply chains. Potential further research could include a deeper analysis into how new technologies like artificial intelligence, blockchain systems, predictive analytics, and real-time supply chain monitoring can contribute to resilience during geopolitical crises. Overall, the results emphasize the need for resilience-focused sourcing strategies to ensure long-term business stability and operational sustainability in today's unpredictable global landscape.

[1]     Asadollah, O., Emirmahmutoglu, F., & Soytas, U. (2024). Geopolitical risk, supply chains, and global inflation. FIU Economics Working Paper, 2406. [2]     Bednarski, L. (2025). Geopolitical rivalry over strategically important industries and supply chain location choices. Production Planning and Control, 36(12), 1510-1527. [3]     Boston Consulting Group. (2023). Building supply chain resilience through regionalization and sourcing redesign. BCG. [4]     Chang, X., Song, Z., & Zhou, T. (2025). Geopolitical risk and global supply chain resilience. Finance Research Letters, 86, 108551. [5]     Council of Supply Chain Management Professionals. (2024). State of logistics report 2024. CSCMP. [6]     Deloitte. (2024). Global supply chain resilience amid disruption. Deloitte Insights. [7]     Digehsara, A. A., Rezaei, J., & Tavasszy, L. (2025). Geopolitical disruptions in global supply chains: The role of network redesign. Transportation Research Part E, 198, 104038. [8]     Gartner. (2024). Supply chain risk and resilience priorities for chief supply chain officers. Gartner Research. [9]     Ivanov, D. (2021). Introduction to supply chain resilience: Management, modelling, technology. Springer. [10]   McDougall, N., & Davis, M. (2024). The local supply chain during disruption: Establishing resilient networks for the future. Journal of Cleaner Production, 468, 143088.