Diversifying an Asian supply base without losing control
Adding countries to a sourcing footprint reduces one kind of risk and can introduce several others. A practical sequence for getting it right.
Many boards have asked the same question in recent years: how exposed are we to a single country, and how quickly could we move? Diversification is the obvious answer. Done in a hurry, it can trade a known risk for several unknown ones.
Start with what is truly critical
Not every part needs a second source. Segment the portfolio by margin impact, substitutability and lead time, and focus diversification effort where a disruption would genuinely hurt the business.
Qualify on the ground
Paper audits and video calls are a starting point, not a decision. Process capability, quality systems and management depth only become clear on the factory floor, ideally before a real production run.
Transfer knowledge deliberately
The incumbent supplier often holds years of undocumented process knowledge. Capture specifications, tolerances and inspection criteria before you move volume, and plan a structured ramp-up with clear quality gates.
Handled this way, diversification strengthens the supply base rather than diluting it, and gives leadership a footprint that can flex as markets change.
