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Back to Case StudiesThe client, a leading European industrial equipment company specializing in material handling solutions, sought to diversify its supplier base to reduce overreliance on China and strengthen overall supply chain resilience.
With rising geopolitical uncertainties and increasing sourcing risks, the company engaged ARC Group to assess the sourcing potential of selected product categories in Vietnam and Malaysia.
The project aimed to evaluate supply market characteristics, resilience, cost competitiveness, supplier capabilities and export compliance readiness across both markets.
The opportunity
Vietnam and Malaysia offered growing manufacturing ecosystems and potential alternatives to China, but the degree of suitability varied significantly by product category, supplier maturity and regulatory environment. This created a timely opportunity for the client to obtain a structured, category-specific assessment of sourcing feasibility, risk exposure and long-term supply potential in Southeast Asia.
By gaining clarity on strengths, limitations and cross-market differences, the client could make informed decisions on diversification pathways that align with its long-term supply chain strategy.
Our Approach
ARC Group began by conducting a comprehensive market study covering sourcing feasibility, cost competitiveness, lead times, trade exposure and regulatory factors. We assessed raw-material dependence on China, category-level risks, and external factors shaping the sourcing environment.
In the next phase, we performed detailed category evaluations supported by supplier RFIs to assess production capacity, compliance standards, export readiness and resilience indicators.
Finally, ARC mapped potential suppliers across both Vietnam and Malaysia, highlighting strengths and weaknesses while delivering a structured sourcing viability assessment and actionable recommendations for each category.
The Impact
ARC Group delivered a data-driven sourcing viability assessment that enabled the client to make informed decisions on diversification options.
We identified supplier strengths and limitations across key categories, strengthening the client’s supplier-engagement and onboarding strategy.
ARC also provided a structured framework for evaluating category-specific sourcing risks, ensuring alignment with the client’s long-term supply chain resilience objectives.
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