DHL Global Forwarding’s latest whitepaper explores how businesses can build more resilient supply chains by diversifying production and sourcing across multiple locations. With rising geopolitical risks and trade disruptions, multi-shoring is becoming a strategic imperative.
Reassessing Supply Chain Vulnerabilities
Global supply chains have undergone profound disruption in recent years, with trade tensions, regulatory shifts, and pandemic-driven shocks exposing critical weaknesses. In response, many companies have explored alternatives to the long-standing “China Plus One” model, which encourages manufacturers to expand sourcing beyond China while still maintaining a presence there.
A new whitepaper from DHL Global Forwarding, China Plus X: The New Global Supply Chain, argues that true resilience requires a broader approach—one that spreads production across multiple locations rather than relying on a single backup. This multi-shoring strategy helps mitigate risk, improve operational flexibility, and future-proof supply chains against the next wave of economic or geopolitical upheavals.
Strategic Expansion Beyond Asia
While Southeast Asia has emerged as a leading alternative to China, DHL’s research highlights a growing interest in other regions, including Southern and Eastern Europe, the Middle East, and South America. Countries such as Mexico and Vietnam are rapidly expanding their logistics infrastructure, positioning themselves as viable manufacturing hubs for global supply chains.
Vietnam has invested heavily in port capacity and road networks to facilitate exports, while Mexico’s proximity to the U.S. makes it a natural alternative for nearshoring strategies. In Europe, nations such as Poland and Romania are attracting investment with their skilled labor pools and improving industrial infrastructure. Meanwhile, the Middle East is leveraging its strategic trade position, and South America is emerging as a low-cost alternative for select industries.
Key Factors Driving Location Decisions
According to DHL’s analysis, companies weighing multi-shoring strategies must evaluate five critical factors before selecting new production sites.
Transportation infrastructure is a top priority, as efficient logistics networks can determine the success of a location. Countries that continue to invest in ports, rail, and road connectivity—such as Vietnam and Mexico—are becoming increasingly attractive.
Cost considerations extend beyond labor expenses, requiring businesses to assess logistics costs, supply chain efficiencies, and overall return on investment. A favorable cost structure can offset potential trade barriers and compliance challenges.
Digital and physical infrastructure also play a crucial role in determining supply chain efficiency. Reliable broadband access, well-developed transportation hubs, and ongoing infrastructure investments are key indicators of a location’s long-term viability.
A skilled workforce is essential for industries requiring specialized labor, such as semiconductor manufacturing. India’s recent investments in education and workforce development reflect a growing effort to position itself as a global hub for high-tech manufacturing.
Regulatory frameworks can make or break a supply chain strategy. Companies must factor in trade agreements, tariffs, and customs policies to ensure smooth operations. Locations with trade-friendly regulations will have a competitive advantage in attracting global investment.
The Future of Multi-Shoring Strategies
DHL’s whitepaper underscores a major shift in global supply chain thinking. While China remains an essential part of many supply networks, companies are increasingly looking for a diversified approach to balance risk and optimize costs. The expansion of trade-friendly manufacturing hubs across Asia, Europe, and the Americas signals the beginning of a more flexible, resilient supply chain era—one where businesses are no longer bound by a single dominant sourcing strategy.
For companies navigating this transition, success will depend on careful site selection, investment in digital infrastructure, and the ability to integrate new supply chain networks efficiently. As geopolitical uncertainty continues to shape global trade, multi-shoring is quickly evolving from an emerging strategy to a necessary competitive advantage.
