Over the last few years, some companies have adopted a “China Plus One” supply chain management strategy. Rather than relying solely on Chinese manufacturers to make their products, these companies established additional supplier relationships in different countries, typically in Asia. This can graduate into a Plus Two, Plus Three or even more, depending on the number of countries where the company sources.
The China Plus One movement was underway before the global COVID-19 pandemic emerged in 2020, but has since reemerged as a viable way for companies to lessen their reliance on China for production during this period of uncertainty. Add the ocean container shortage, congested US ports and ongoing supply chain interruptions to the equation, and diversifying into new manufacturing centers appears to be an increasingly good idea.
