A sourcing organization supporting a leading Nordic retail group sought to re-evaluate its international procurement strategy amid rapid shifts in global trade dynamics. The client faced growing uncertainty driven by geopolitical tensions, evolving EU regulatory requirements, and heightened sustainability scrutiny across its non-food supply chain.

To safeguard long-term competitiveness, the client partnered with ARC Group’s management consulting division to develop a forward-looking sourcing strategy designed to strengthen supply-chain resilience, improve cost efficiency, and position the organization for diverging EU–China–U.S. trade scenarios.



The opportunity

While sourcing from China remained attractive due to pricing and capacity advantages, trade tensions and regulatory tightening posed emerging risks. At the same time, purchasing alliances and joint sourcing models were gaining traction among European retailers, offering new avenues for supplier leverage.  This environment created a strategic window to rebalance risk and opportunity, allowing the client to diversify sourcing across Asia and Europe, evaluate the value of joining sourcing alliances, and future-proof its supply base under multiple trade evolution scenarios.

Our Approach

ARC Group’s management consulting division conducted a scenario-based geopolitical and risk analysis, modeling potential EU–China policy shifts, tariff developments, and evolving sustainability mandates.

The team benchmarked sourcing trends across Asia and Europe, identified priority product categories for diversification, and assessed supplier availability across alternative markets.

In parallel, the engagement evaluated the strategic implications of purchasing alliances, weighing the benefits of scale against potential trade-offs related to autonomy and operational flexibility.

The Impact

ARC Group’s management consulting division delivered a strategic sourcing roadmap aligned to evolving market realities, enabling more resilient procurement decisions under uncertainty. The client gained a clearer view of sourcing risk exposure and actionable pathways to reduce dependency on single markets. Our recommendations supported cost-effective supplier diversification, strengthened positioning in Asia, and provided the insights needed to assess alliance participation based on long-term goals.

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