Diversifying Suppliers in Uncertain Markets


"Every man lives by exchanging." - Adam Smith In an effort to restrict imports by increasing the price of goods and services purchased from China and now Mexico, President Trump has U.S. companies scrambling to diversify their supply chains. IMF researchers and others have noted, "tariff revenue collected has been borne almost entirely by U.S. importers." The ISM gauges 18 manufacturing industries, and many of the survey's respondents commented on tariff issues as being a factor for the slow down in their industry. "Ongoing tariffs [are] impacting costs and influencing supplier realignment on country of origin." Considerations for countries like India have been met with additional actions from the U.S. executive branch, as it was announced that India will be removed from a special trade program referred to as the Generalized System of Preferences. The program exempted Indian goods worth more than $6 billion from import duties in 2018 (Source: Congressional Research Services). The initial announcements of tariffs in China resulted in affected companies looking at other countries within SE Asia, Mexico, etc. The influx of sourcing activity has resulted in its own set of challenges, such as shortages in the labor market among countries of renewed interest. For this challenge, Pro QC is assisting in the recruitment of local quality and engineering professionals that can either be leveraged on a contracted basis and/or directly hired. As a partner to many companies affected by the unstable trade market, Pro QC has worked diligently in recent months with clients to identify new suppliers and assist in the process of development given narrow deadlines and uncertain economic policy. Pro QC and sister company EDS International have worked together to help with the identification of new suppliers in several countries outside of China. The goal is finding new options that have the capabilities, capacity, cost, etc. to meet expected volumes. Sourcing engineers on the regional teams can identify which items affected by current tariff activity would be recommended for which other regions. Recommendations for potential suppliers are supported by on-site visits by sourcing and quality professionals and cumulative qualitative and quantitative data. As the process of getting a new supplier up and running goes through its course, Pro QC has local resources capable of confirming activities and communicating through expected deadlines. The time between approval and the first shipment can be expedited when leveraging local expertise. As production starts, it's noted clients will want to assess quality from first article, through to pre-shipment. The expectations should be notably positive given involvement and oversight throughout the process. When issues do occur, Pro QC offers local expertise on-site. The teams identify root causes and develop/execute corrective actions where needed. While various countries continue to convene and assess ways to mitigate the risks to U.S. businesses, Pro QC remains a stable, experienced resource that can support short and long-term strategies. Learn more about EDS International here: https://eds-international.com

<< Back to List

Subscribe to Our Newsletter

Related Content

Medical Device Solutions

Case Study

Supplier Audit - Advantages of Supplier Audits and Case Study

Supplier Audit - Advantages of Supplier Audits and Case Study...

Read more

Medical Device Solutions

Feature Article

Quality Management in the Indian Textile Industry

India's textiles industry is not only one of world's largest, spanning a diverse range of raw materials and textiles manufacturing outputs, but it is also, fascinatingly, on...

Read more

Medical Device Solutions

Insider News

Pro QC's Global Team - A culture of excellence, exemplified by our people

A quality solutions provider is only as good as its team. Here at Pro QC, we are proud of our teams who work hard to solve the challenges faced by purchasing and quality d...

Read more

Back to top
Pro QC

Contact Your Local Office

North America

+1 813 252 4770

Latin America

+52 81 2721 0928

India & South Asia

+91 120 4291971

Europe, Middle East & Africa

+33 9 7303 6784

Germany, Eastern Europe

+49 172 38 759 50

Asia & Asia Pacific

+886 2 2832 2990

Contact Us by Email



Global Coverage experiencia local Local Expertise

© 2021 Pro QC International | Privacy | Terms of use | Terms of service