As global supply chain uncertainty grows, procurement managers must rethink sourcing strategies. According to a Thomson Reuters 2024 report, supply chain disruptions and geopolitical conflicts remain top concerns for international trade professionals. Many clients are moving from a "China+1" approach to a more flexible "China+N" model: keeping Chinese production while also adding manufacturing or sourcing in ASEAN (e.g., Malaysia, Vietnam) or in North America and Europe. This diversification helps avoid the"all eggs in one basket" problem, enhancing resilience, lowering costs, and opening new markets.
Currently, the 139th Canton Fair is taking place in Guangzhou, offering a window into sourcing trends. The fair covers key categories like advanced manufacturing, home products, textiles, toys, and electronics. Procurement teams can use this platform to vet suppliers, understand lead times, and explore China+N opportunities. For example, discuss with suppliers who have plants both in China and Vietnam about capacity and quality control; look for certified "specialized and innovative" companies and use digital fair tools for exhibitor info.
Actionable tips: Assess risks for critical items (e.g. single-source dependency) and build a multi-source network. Negotiate clear contract terms on delivery lead times and quality. Conduct regular factory audits or third-party inspections, and maintain reasonable safety stock. Actionable tips: Assess risks for critical items (e.g. single-source dependency) and build a multi-source network. Negotiate clear contract terms on delivery lead times and quality. Conduct regular factory audits or third-party inspections, and maintain reasonable safety stock.
