A decentralized supply chain may be the best model for you…

A decentralized supply chain may be the best model for you…

As global brands continue seeking to expand their footprints into new markets and distant geographies, the localization industry struggles to tweak its’ supply chains to support the language operations needs of their customers. Likewise, the acceleration of digitization and the rapid entry into new territories require more diverse expertise and knowledge to support the adaptation of products and services that appeal to local buyers. To sustain growth, larger Language Service Providers (LSP’s) often have to resort to hiring local localization providers to meet the needs and expectations of their customers for specific skills sets, languages and other business requirements. 

As a result, most localization projects nowadays tend to be farmed out to teams that are external to the supplier initially selected, leading to an increase in the decentralization of operations; miscommunication between the various production teams involved in any given engagement; and mostly financial inefficiencies due to margin stacking at the various level of the supply chain. In reality, very few LSP’s truly possess the distributed teams and staff required to support expansive global language operations. This is simply due to extremely high overhead costs of maintaining such an organization on the one hand, and pricing pressure driven by customers on the other. And while this trend undoubtedly contributes to the development of global and super agencies, it represents a major disadvantage for smaller regional or local LSP’s who then find themselves in the position of “back office” for larger players. 

Recent technology advances have led to eliminating communication barriers between economic actors in most industries. The birth of a our “global village” has made it possible for buyers to interact with suppliers directly, wherever they are. Likewise, the development of project management and communication platforms has given all stakeholders of this global trade ecosystem access to abundant data that helps lead daily production and support educated decision making. In other words, there is no reason why your continuous localization cycle cannot be supported by a decentralized supply chain, and the benefits may be worth exploring. 

And while decentralizing your localization supply chain may contribute to building a bigger, stronger global brand and increasing your overall content ROI, there are many components of your strategy that will require careful planning and consideration. Smaller local players usually don’t have the resources available to their competitors, they are also more prone to disruption caused by economic, social and financial factors. It is therefore crucial that you seek the support of the right partner to guide your selection. 

Loquell is a data and content consultancy company. With over 75 years of combined experience in content methodology optimization, technology and data powered customer engagement, data management and artificial intelligence, Loquell delivers integrated technology driven content and data strategies to drive measurable business results and support world-class customer engagement through digital content. From best practices to proven methodologies and implementation of technology infrastructure aligned with your corporate goals, our global experts are here to guide you. 

Our teams of dedicated solution architects and experienced consultants can provide you with the best practices, solid processes, technology know-how and workflow management you need to optimize your localization efforts. Whatever the expertise you need to fuel your global expansion, our cross-functional team will deliver!