Case Study: SIG Sourcing’s China+1 strategy delivers savings, continuity & lower risk

When a long-time customer, a lighting OEM, approached SIG Sourcing’s Managing Partner Chris Shaw about the possibility of pursuing a China Plus One (C+1) strategy, Shaw didn’t need to think twice.

“Supply chain disruption is no longer viewed as a temporary crisis. It is a fundamental, ongoing business reality that requires a reliable solution. Fortunately, we had already started laying the groundwork.” he said.

SIG established a C+1 approach that provides exactly what this long-time customer sought: an enduring solution that delivers supply chain strength and resilience while reducing risk, providing a true competitive advantage for SIG customers.

THE CHALLENGE: Pervasive supply chain disruption

This lighting OEM, like many manufacturers, had been wrestling with a variety of issues that made supply chain volatility a pervasive business problem, including:

• Unpredictable tariffs and trade policies that drove up costs and forced them to rethink where they sourced their products.

• Geopolitical anxiety and disruptions that restricted key shipping routes, resulting in delays and higher freight costs.

• Labor shortages and rising costs, especially for skilled workers in manufacturing and transportation.

The world’s largest firms, such as Apple and Honda, have leveraged C+1 for years, expanding production in India, Vietnam, Malaysia and other cost-competitive countries while retaining operations in China. But for other manufacturers, even multi-billion-dollar companies such as this lighting OEM, finding, vetting and forging relationships with new partners globally is simply too large of an undertaking, especially for small or mid-volume product lines.

SIG is in a strong position to help in these cases; as a turnkey EMS provider, they can develop a C+1 approach for their customers with minimal costs or external resources required.

THE SIG SOLUTION: C+1 Plus more: Integrated Global Contract Manufacturing

For this lighting OEM, SIG manufactured a niche product line. The customer wanted to achieve C+1 without losing the high level of support that SIG provides.

“They wanted us to support them with manufacturing from multiple regions without having to go out and qualify a factory themselves. They did not want to lose the USA-based support, our institutional knowledge and 25-year track record on this product line.” Shaw said.

SIG worked with its China-based factory to develop a dual-sourcing strategy. The Chinese team shifted a portion of the manufacturing process to its sister plant in Malaysia. It was a highly collaborative process, with the two teams working closely to maintain the integrity of the production process.

SIG facilitated the cross-team training, and Shaw himself flew to China to lead the joint training sessions of the Chinese and Malaysian teams.

THE VALUE: Resilient supply chain + lower costs + reduced costs = competitive advantage

“We knew the dual-sourcing model would reduce risk and give our client a resilient supply chain. What we didn’t anticipate was the ancillary benefit of the trust and teambuilding that was created between the two factory teams as they gained a shared understanding of the full manufacturing flow. That was quite special to experience.”

The SIG solution has been online since spring 2026, and the client has been delighted.

“With SIG Sourcing, we saved months of our own time and research and ended up with global dual-sourcing solution that is poised to deliver all of the expected savings while removing virtually all of the risk,” said the client’s Sourcing Manager.