Diversifying away from single-country dependency has become standard board-level advice. Executing it without eroding cost, quality and speed is much harder.
Start with the right categories
Not every category needs a second source. Focus on those where disruption would stop revenue, and where alternative supply markets have genuine capability.
Model total landed cost — honestly
Labour arbitrage is only one line. Include tooling transfer, qualification, logistics, duty and the management time that new suppliers demand.
- Run pilot volumes before committing
- Keep incumbent suppliers engaged and competitive
- Build local quality presence early
The goal is optionality, not relocation for its own sake.
Done well, a Plus One strategy improves resilience and strengthens your negotiating position with existing suppliers.
