What Defence Buyers really need to achieve sovereign capability 

Executive Summary

Pressures from global conflicts, trade wars, and resource scarcity are forcing governments to re-assess: 

• What sovereign capability actually means 

• Which sovereign capabilities are critical 

• How local sourcing reduces risk – and where it falls short 

• What is needed to move beyond Tier 1 visibility

• How to reduce single points of failure

This paper offers straightforward guidance for Defence Buyers. It shows where blind spots exist, why reshoring alone isn't enough, and how to avoid relying on single source suppliers. Most importantly, it demonstrates how JOSCAR - a community built by buyers - helps you source and onboard local suppliers faster, with confidence.

Introduction 

Defence buyers are being asked to do more with less certainty. They’re expected to reduce risk, boost resilience, and ensure continuity - all while navigating a more dynamic external environment.  

But here’s the truth: old models of due diligence and supplier onboarding weren’t built for today’s pace or complexity.  

Sovereign sourcing is increasingly a board-level issue. But confusion remains for Procurement leaders:

• If reshoring isn’t enough, what is?

• If risk is hidden in lower tiers, how do I see it?

• I need to reduce single points of failure in my supply chain, but where do I start? 

This paper tackles these questions head-on, using real-world examples - not abstract theory. 

Key Finding 1: Reshoring alone won’t secure your supply chain 

Question: "Does sourcing locally actually reduce risk?” 
  
Reshoring feels like the safe answer. But in reality, ‘local’ can be misleading. Many suppliers with a domestic presence still depend on offshore entities, overseas components, or foreign-controlled parent companies.  

Examples include:

• A supplier owned by a foreign holding company

• Critical materials sourced from sanctioned countries 

• Local manufacturers with offshore control over IP or decision-making

The lesson? Don’t assume a local address equals local control.  

In short: Reshoring may look autonomous on paper, but without the right data, you're still in the dark. 

So, what can I do? 

You need validated primary supplier data that covers foreign ownership, control and influence. We understand that getting this from suppliers can be difficult – that's why we do this for you.    

JOSCAR collects information on ownership, ultimate parent company and revenue fields - not just business address. 

Key Finding 2: What you don’t see beyond Tier 1 can stop you cold 

Question: “How do I assess risks in the lower tiers?” 

You might know who your Tier 1 suppliers are and even their immediate partners. But strategic vulnerabilities often exist further upstream, in areas you’re not tracking at all. 

Take Rare Earth Elements (REEs). They’re essential for everything from radar systems to cockpit displays. Your approved supplier may appear local, but the REEs they rely on are often extracted in Africa and almost always processed in China. 

That means:

• Even 'sovereign' suppliers may depend entirely on non-sovereign processing infrastructure

• A single export control decision, like the one China imposed in Spring 2025, can block your ability to manufacture critical components

• You’ll face delays and added costs while scrambling to find viable alternatives

The lesson? Sovereignty isn’t just about where your supplier is - it’s about who and what they’re dependent on. 

You need visibility into upstream material risk and processing choke points, not just entity names on a spreadsheet. 

In short: Even a truly local Tier 1 can suffer from wider extraction and processing bottlenecks, and that’s the risk that will catch you off guard. 

So, what can I do? 

Build sourcing strategies that reduce single-region exposure, especially for critical inputs. 

JOSCAR gives you information on nearly 9,000 critical subcontractors across the UK and Australian Defence, Aerospace and Security industry. 

Case Study: Sovereignty tested in the Russia–Ukraine Conflict 

The importance of supplier visibility became painfully clear when conflict broke out in Ukraine. In response, we’ve seen a shift away from global supply chains and a desire to develop ‘true’ sovereign capabilities. 

Several organisations quickly discovered that many suppliers who appeared local had dependencies or raw materials in a conflict zone.   

New sanctions required urgent insight into suppliers with links with Russia and Ukraine. Traditional methods would have taken months. 

But the JOSCAR Governance Group, at the time made up of 15 Defence Buyers, moved at speed. Hellios launched a conflict-specific questionnaire in 9 days. Over 2,000 suppliers responded in under two weeks. 

This enabled Buyers to:

• Rapidly identify suppliers with Russian or Ukrainian ties

• Adjust sourcing and mitigate operational risk 

• Demonstrate compliance with new sanctions