“After years of ‘Made in China,’ supply chains consider alternatives”
Let’s take a closer look at factors to consider when evaluating the possibility of shifting your supply chain away from China:
When to consider moving your supply chain
- Tariffs and Cost-Efficiency: Evaluate whether tariffs are currently impacting or are expected to affect your product significantly. Additionally, if other countries offer lower labor costs and evidence suggests that the product can be produced at an equivalent quality level for less, it’s worth considering a move.
- Shorter, Competitive Supply Chains: If shorter, more competitive supply chains, like those in the USA or Mexico, this can be a strong motivation to relocate your supply chain.
When not to move your supply chain
- Your product relies on a complex, highly specialized supply chain.
- Moving your supply chain would be a lengthy, capital-intensive endeavor without guaranteed long-term cost benefits.
- Quality standards and expectations are not met.
- Overall costs increase due to lower productivity in alternative countries.
- You still rely on raw materials and resources imported from China.
- Tariffs could potentially affect your chosen alternative.
- China remains the best sourcing choice for your products.
While the allure of China sourcing alternatives is strong, careful consideration and thorough analysis are essential before taking the leap.
I would love to know your thoughts in the comments below. 👇🤝
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