Supplier Diversification

From China+1 to “friendshoring,” supplier diversification is hot. Tariff talk and geopolitical tensions are prompting plans for greater geographic supply diversification. Aiming to enhance supply base resilience and flexibility, our client partners are requesting our support in executing supplier diversification strategies:

• Establishing clear diversification goals: cost, agility, risk reduction, quality, visibility, regional stability, etc.
• Analyzing product and supplier performance data to identify the best diversification opportunities
• Developing cross-functional teams to pursue an expanded supply base/ footprint
• Researching and validating prospective suppliers’ capacity, workforce, equipment, and know-how
• Negotiating new relationships and contractual agreements that establish meaningful quality and performance expectations
• Executing project plans for component, supplier, and/or facility transitions
• Ensuring necessary engineering rigor for supplier and/or component transitions
• Improving product profitability with design-to-value VAVE, incorporating competitive, customer, and supply insights
• Identifying and mitigating transition-associated risks and costs
• Managing supplier performance and expectations for continuous improvement
• Developing formal supplier relationship management programs for collaborative improvements

We enjoy helping our client partners build secure, flexible, and adaptable supply chains suited for our increasingly complex global business environment.