Factory Supply Chain: Single Supplier in Vietnam = Risk (Diversify to Thailand)
Electronics manufacturer SGD 2M COGS from Vietnam supplier. Single source = risk: supplier disruption (1 month lost), inventory spike (overstocks before disruption), quality variance (no alternative). Diversify: 50% Vietnam + 30% Thailand + 20% domestic = supply stable. Competitive pressure: 15% cost reduction vs single supplier. Setup: 2-3 months vetting and MOQ negotiation. ROI: SGD 300K annual savings, 6-month payback.
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