Whether it be a move forced by the U.S.-China tariff turmoil, or a sourcing strategy long in the works, the exodus from China is a reality for a host of businesses, from small to medium-sized enterprises to multinationals.

While the departure is widespread, it isn’t universal—some major players, Nike and Intel among them, openly announce they have no intention to pull out of China, in a large part due to its importance as a consumer market. However, for businesses in pursuit of low-cost outsourcing, China is becoming an increasingly less feasible choice. With Vietnam—arguably the biggest beneficiary from the trade war fallout—almost at capacity, global supply chains in price-sensitive consumer goods segments are exploring new sourcing horizons.

That said, shifting one’s supply chain into a new country is never a trouble-free process. In the classic project management triangle of quality vs. speed vs. cost, only two facets out of three are available at any given time. The latest data collected by quality and compliance solution provider QIMA indicate that as buyers move into new sourcing regions, the quality dimension is the most likely to suffer.

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