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Strategic Sourcing and Footprint Analysis

Enabling predictable and profitable strategic, operational, and tactical sourcing decisions.

Specifically designed to support the identification of risks and opportunities in both current partners and potential locations, our strategic sourcing solution provides retailers and manufacturers with a custom index that aggregates data and risk scores specific to your exposures.

The breadth and variety of our proprietary datasets and analysis will enable sourcing professionals to evaluate the regional risks and economic landscapes within their strategic sourcing plan, including:

  • Understand the stability and reliability of your current strategic sourcing partner countries
    What are the odds of disruption? What are the greatest areas of risk? How are risks evolving over time?
  • Discover new strategic sourcing partner countries
    Where do economic, demographic, and risk conditions align? What origin markets already support a product or segment? What origin markets produce adjacent products or segments?
  • Set diversification rules around your sourcing strategy
    Is your current strategy resilient to local, regional, and global events? Are there hidden or underlying risks that exist across your current strategy that weaken your diversification?
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Sample deliverables

  • Proprietary index framework to compare and contrast countries
  • Access to underlying sub-index and driver data
  • Ability to customize indices and rankings
  • Interactive client portal

Methodology highlights

There are three levels of insight:

  • Index – A single score for each country, so that countries can be easily ranked against one another and examined over time.
  • Sub-Index – Thematic sub-scores for each country that provide additional detail (Demographics; Economic Performance; Employment and Labor Cost; Price, Inflation, and Resource Costs; Risk; Supply/Market Conditions)
  • Concepts – The raw data insights from across the multiple services that IHS Markit has introduced to the analysis.

Inputs are gathered from across Economics & Country Risk and the broader IHS Markit. Individual series (which we call “Concepts”) are tagged as good or bad (are increases or decreases in this concept considered a “good” for the purposes of sourcing decisions). Each Concept is then mapped to thematic groups (called Sub-Indices) with the requirement that there is at least one Concept in each group for each country. The methodology is flexible in allowing for mapping of any number of Concepts to each Sub-Index (so long as it is >0). Each Concept is also rescaled so that we can look across levels, changes, indices, diffusion indices in this holistic approach.

Why IHS Markit?

Underlying Data Assets and Intelligence

Built on unmatched data assets, including:

  • Risk ratings for 6 aggregate and 22 sub-aggregate risk categories
  • Comparable risk ratings between countries and regions
  • Independent credit risk assessments for 205 countries to evaluate the potential for default on sovereign debt
  • Forward-looking risk ratings of 46 emerging market banking sectors
  • Bottom-up construction spending forecasts for 74 countries and 20 structure types
  • Official import and export statistics from sources around the world
  • Timely survey insight from purchase managers and leaders in over 40 countries
Bespoke Solutions

In addition to our strategic sourcing solution we offer a number of additional services and bespoke solutions. Contact us to learn more.

  • Product and Index Customization – Our economic consultants can customize the product classifications and index concepts to reflect the unique demands of individual clients
  • Counterparty Risk Assessments – Our risk consultants deliver comprehensive assessments of default probability against contractual obligations
  • Economic Impact Assessments Our economic consultants deliver comprehensive assessments of jobs and economic activity due to ongoing business operations or changes in market environments, policies, or infrastructure investments
  • Supplier Assessments Our Pricing & Purchasing group has a strong track record of assembling objective analysis and due diligence tools on individual supplier partners
  • Maritime Shipping Extensions – Our Maritime & Trade group can track vessels around the world in real time, providing early warning around congestion at ports and major chokepoints like canals and straits
  • Inland Transportation Extensions Our Transearch solution can forecast freight demand, and therefore volume and congestion, at a detailed geographic level for the United States, Canada, and Mexico
IHS Markit has over 1,200 world class experts and researchers and 1,400 industry analysts. Our Economics & Country Risk team alone has over 200 economists, country risk analysts, and consultants. We have extensive experience working in the revenue forecasting space, serving numerous countries, states, cities and counties.
IHS Markit is consistently recognized as the most accurate forecaster of economies and industries around the world. Inaccurate forecasting costs you money and causes misappropriation. You can’t afford to be wrong.
Country and Industry Intelligence
By leveraging expert analysis across IHS Markit, we can assess industry events and trends and provide our clients with a clearer view of how the ripple effects will be felt throughout the United States.

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