China Plus One Sourcing Strategy
Diversify manufacturing beyond China without abandoning it — the practical guide to multi-country sourcing
- China Plus One Sourcing Strategy
- Evaluating Alternative Manufacturing Countries
- Managing the Transition Without Disrupting Supply
China Plus One Sourcing Strategy#
China Plus One means maintaining Chinese suppliers while developing alternative sources in Vietnam, India, Thailand, or Mexico. It's not about leaving China — it's about reducing concentration risk. Most companies target 30-50% non-China sourcing within 3 years. The key challenge: finding suppliers who match Chinese quality and scale.
Evaluating Alternative Manufacturing Countries#
Vietnam: strong in textiles, electronics assembly. Lead time from Vietnam is similar to China. India: strong in pharmaceuticals, chemicals, IT. Quality inconsistency is the main challenge. Mexico: ideal for nearshoring — 2-day truck delivery vs 30-day ocean freight. Higher labor costs offset by lower logistics costs and USMCA duty benefits.
Don't switch overnight.
Managing the Transition Without Disrupting Supply#
Don't switch overnight. Run parallel production for 6-12 months. Start with 10-20% of volume at the new supplier, increase as quality stabilizes. Keep Chinese supplier engaged — they'll price more competitively when they know you have alternatives. The goal is optionality, not abandonment.
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- Diversify manufacturing beyond China without abandoning it — the practical guide to multi-country sourcing
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What is the business impact of china plus one sourcing strategy?
Diversify manufacturing beyond China without abandoning it — the practical guide to multi-country sourcing
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