How Should We Diversify Our Supply Chain? (HBR Case Study)

In the wake of Covid-19's disruptions, Kshore, a Chinese appliance maker, is thinking of realigning its supply chain. Like many other global manufacturers, it's being pressured by its customers, which include Walmart and other large retailers, to reduce the time, expense, and environmental impact of shipping goods between countries. On a trip to Monterrey, Mexico, Kshore's CEO and COO tour factories that are closer to North American markets-and are impressed by their professionalism. But questions about transportation and staffing give the executives pause. Should Kshore start production in Mexico or consider other countries? Two experts weigh in. For teaching purposes, this is the case-only version of the HBR case study. The commentary-only version is reprint R2306Z. The complete case study and commentary is reprint R2306M.