Lecture 11

Question 1

What is the ‘China + 1’ strategy, and why is it important?

Answer 1

• The ‘China + 1’ strategy involves reducing dependency on China by expanding sourcing and production to other regions (e.g., Southeast Asia, India).
• Importance: Mitigates risks from geopolitical tensions and rising costs in China. Enhances supply chain resilience by diversifying locations.

Question 2

What are the four dimensions of supply chain diversification according to DHL?

Answer 2

1. Multi-shoring: Redundant manufacturing capacities in multiple regions.
2. Multi-sourcing: Using multiple suppliers for critical goods.
3. Modes of Transportation: Diversifying between air, sea, rail, and road.
4. Logistics Operations: Expanding hubs and warehouses for resilience.

Question 3

How does supply chain diversification improve agility?

Answer 3

• Enhances flexibility in sourcing and logistics.
• Mitigates risks from disruptions through redundant operations.
• Supports sustainability and customer responsiveness.

Question 4

What is the reshoring framework by Gray et al. (2013)?

Answer 4

1. In-house Reshoring: Domestic production within the company.
2. Reshoring for Outsourcing: Partnering with domestic suppliers.
3. Outsourced Reshoring: External providers manage reshored operations.
4. Reshoring for Insourcing: Bringing previously outsourced activities in-house.

Question 5

How does diversification differ from reshoring?

Answer 5

• Diversification: Focuses on expanding capabilities across multiple regions while maintaining global operations.
• Reshoring: Focuses on bringing production closer to demand markets.

Question 6

What are the benefits of supply chain diversification from an ecosystem perspective?

Answer 6

1. Encourages collaboration among stakeholders.
2. Integrates local sourcing with global operations for resilience.
3. Aligns with sustainability and innovation goals (e.g., Maersk’s green shipping ecosystem).

Question 7

What is Maersk’s green transition, and how does it use ecosystems?

Answer 7

• Maersk focuses on green methanol production through partnerships with producers, engine designers, and shipyards.
• The ecosystem ensures sustainability and alignment with environmental goals.

Question 8

How is Apple applying multi-shoring in its supply chain strategy?

Answer 8

• Apple is shifting production to countries like Vietnam and India while maintaining some operations in China.
• This reduces geopolitical risks and enhances resilience.

Question 9

What role does logistics diversification play in supply chain resilience?

Answer 9

• Expands infrastructure with redundant hubs and warehouses.
• Enhances flexibility with diverse transportation modes to adapt during disruptions.

Question 10

What did Dohrmann et al. (2024) conclude about supply chain diversification?

Answer 10

• Diversification improves resilience, agility, and customer centricity.
• The four-dimensional framework (multi-shoring, multi-sourcing, transportation, logistics) provides structured strategies for reconfiguring supply chains.
• Collaboration and technology are essential for effective implementation.

Question 11

What were the findings of Hansen and Palvig (2024) on the ‘China + 1’ strategy?

Answer 11

• 21% of surveyed Danish companies actively adopt the strategy.
• Southeast Asia and India are top alternatives due to geopolitical risks and cost considerations.
• Challenges include lack of infrastructure and skilled workforce in alternative regions.