While the notion of having a China exit strategy isn’t new for apparel and footwear supply chains, the intense political uncertainty enveloping the industries certainly is. But going elsewhere might not always be the best solution.
“People have been diversifying their supply chains but country hopping is not the answer,” Ed Gribbin, Impactiva’s chief engagement officer, told Sourcing Journal’s president and founder Edward Hertzman. “If you go to another country you have to deal with a lack of tier 2 suppliers, lack of fabric or trims, logistics and infrastructure issues and in many cases, political risk.”
Gribbin said by working smarter, brands and retailers can make China work, at least for the products that make the most sense to stay there.
Watch the video to see how lean techniques can cut costs, improve quality and mitigate future tariffs.