Justifying the Added Cost of Secondary Manufacturing Sourcing to the COO
Single-sourcing saves 5% on unit costs until a geopolitical crisis halts production. Here is how to pitch dual-sourcing resilience as operational insurance.
Amit KasliwalCEO & Founder, Dehurdle
April 22, 20244 min read
The Supply Chain Insurance Metric
Recommended Spoken Script
"Qualifying a secondary manufacturing partner in Mexico costs $60k in upfront tooling and increases blended unit costs by 3%. However, it completely eliminates our $12M single-point-of-failure risk in the event of East Asia port lockdowns, providing guaranteed operational continuity."
The 2-Minute Practice Drill
2-Minute Spoken Drill
The 2-Minute Practice Drill
Practice dual-sourcing executive pitches in Dehurdle.