India Emerges as Strategic Hub for De-Risking Global Supply Chains

What if 30% of current China-sourced volume transitions to India suppliers?

Model the impact of gradually shifting 30% of procurement volume from China-based suppliers to India-based alternatives over a 12-month period. Simulate changes to lead times (typically 2-4 weeks longer for India air freight, potentially similar for ocean routes), cost structure adjustments (labor arbitrage gains offset by transition costs and logistics), supplier capacity constraints during ramp-up, and inventory buffer requirements during transition. Evaluate total landed cost changes and service level impacts.

What if India supplier lead times increase by 3-4 weeks due to capacity constraints?

Simulate supply disruption scenario where India suppliers experience 3-4 week lead time extensions due to capacity bottlenecks during transition influx. Model impact on safety stock levels, inventory carrying costs, service level targets, and demand fulfillment. Evaluate whether expediting options (air freight premiums) or demand-side adjustments (demand smoothing, demand sensing) are more cost-effective responses.

What if total landed costs from India remain 8-12% higher than China despite labor savings?

Evaluate economic viability of India sourcing if cost premiums persist due to smaller economies of scale, higher logistics costs, supplier overhead, and transition expenses. Simulate different volume scenarios and time horizons to identify when cost parity or advantage is achieved. Model sensitivity to freight rates, exchange rates, and supplier learning curve improvements.