How to Find the Right Suppliers in New Regions

Diversifying Your Supply Base is Challenging. The Right Plan Can Help.

A supplier selection strategy that begins with a solid business case with well-defined requirements can help a company find partners that support and advance their business goals. Manufacturers are increasingly moving production away from Asian suppliers and into other regions of the world. Whether you are setting up shop in Mexico or another low cost country alternative, it is important to understand that finding the right suppliers is a complex process.

4 steps to new supplier selection and tips for creating a successful transition.

Defining requirements
Exploring suppliers and developing the shortlist
Initiating the RFP process and selecting a supplier
Building a project plan for the transition

Companies must invest time and effort in the supplier discovery phase as well as be clear to the team on the most critical business and product requirements before initiating an RFP.

Complete the form to download the article and ensure that you have a plan to handle the challenges that can and will arise, and resist the temptation to skip steps that will make the difference.

Frequently Asked Questions

Why is finding the right suppliers in new regions more complex than expected?

Finding the right suppliers in new regions is complex because cost, capability, and reliability are not always visible upfront. The article explains that manufacturers often focus on price or proximity while underestimating execution risk, quality maturity, and cultural differences. Without a structured supplier management approach, companies risk onboarding suppliers that look attractive initially but struggle to meet performance expectations over time.

What risks do manufacturers face when sourcing from unfamiliar regions?

Manufacturers face risks such as inconsistent quality, longer lead times, communication barriers, and weak problem‑solving capability. The article highlights that suppliers in new regions may lack experience with required standards, volumes, or variability. These gaps can lead to rework, expediting, and margin erosion if supplier selection is based on assumptions rather than operational capability.

How can manufacturers improve supplier selection when entering new regions?

Manufacturers can improve supplier selection by evaluating suppliers through an execution‑focused lens rather than cost alone. The article emphasizes assessing process discipline, management systems, scalability, and responsiveness before committing. By investing upfront in supplier qualification, alignment, and ongoing management, companies build more resilient supply chains and reduce risk when expanding into new sourcing regions.