Are our Chinese suppliers really independent?
Different supplier names do not prove independent supply. Check whether the same parent company, component maker, tooling, utility or transport bottleneck could stop both factories. Record what is verified, shared or unknown, then test the alternative against the disruption you want to withstand. Checks in China can be coordinated by Cambridge China Bridge.
Define the disruption you need to withstand
Start with the product and a specific failure: the incumbent site closes, a component maker stops supplying, or a transport route becomes unavailable. Ask whether the alternative could still deliver the approved product under that condition. Independence is specific to the disruption; separate factories can protect against a site failure while remaining exposed to the same regional interruption.
DBT's resilience framework places data and visibility beneath resilience decisions and treats diversification as an option for reducing dependencies. Apply that approach by mapping shared dependencies before choosing another supplier. The wider de-risking guide covers overall priorities; this check establishes which failures your supplier pair could withstand.
Compare ownership and operational control
Ask each supplier for its registered Chinese company name, registration identifier, production address, parent company and ownership structure. Match these against current registration records and the entities on quotations and orders. Different trading names, sales teams or addresses are reasons to investigate, not evidence of separate ownership. For these information requests, see writing clear supplier emails.
Ask who controls purchasing, production allocation and financial decisions across related factories. A shared parent may redirect capacity during a shortage even when sites have separate equipment. Record common ownership separately from shared operations, and mark unclear control as unknown. Request supporting records rather than accepting an assurance that the factories are independent.
Trace critical inputs and tooling to their source
For each input or process whose absence stops shipment, identify the actual maker and production site behind each supplier. Compare names and addresses, not just distributors. Ask to see relevant purchase records, material labels or subcontracting records, with unrelated commercial details concealed. If access is refused, retain the dependency as unknown.
Check where tooling is physically held and whether the alternative can produce without moving equipment from the incumbent. Include fixtures, programmes, specialist maintenance and outsourced processes. A duplicate mould is insufficient if both factories still depend on the same unavailable process or technician.
| Dependency | Evidence to request | Question to resolve |
|---|---|---|
| Critical component or material | Actual maker, site and recent purchase or batch records | Do both factories depend on the same source? |
| Outsourced process | Subcontractor name, address and production records | Could the same subcontractor failure stop both? |
| Tooling and fixtures | Location records, photographs and production trial evidence | Can the alternative operate without transferring shared equipment? |
Check utilities and the complete transport route
Ask about electricity, water, gas and other services needed for the actual process. Establish whether the factories share an industrial estate or utility infrastructure. For backup arrangements, request maintenance and operating evidence and check which production stages they support. A generator that keeps offices running does not establish that production can continue.
Map collection roads, bridges, warehouses, inland terminals, ports and shipping routes. Different forwarders may still use the same bottleneck. Ask each supplier and logistics provider to describe an executable alternative, including cargo handling and booking availability. Check that the proposed route avoids the disruption rather than merely changing the transport provider.
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Turn the findings into a purchasing decision
Keep a product-specific register showing each dependency, the evidence source and date, whether it is shared, separate or unknown, and the action owner. Work through the chosen disruption with both suppliers: what stops, what stock remains usable, and what enables restart? Describe the result precisely, such as separate assembly sites with a shared component source.
Resolve critical unknowns before relying on the alternative. Options include another component maker, separate tooling, a workable route or stock held outside the affected location. Test the changed arrangement using the second-supplier qualification guide. For country diversification, use China Plus One. Cambridge China Bridge's staff in China can support agreed factory and upstream checks; refresh the register after relevant changes.
Frequently asked questions
Can factories with the same parent be backup suppliers?
They may protect against a failure at a particular site. Check shared purchasing, capacity allocation and financial control before relying on them for protection against a group-wide interruption.
How do I find shared sub-suppliers?
Request the actual makers and sites for critical inputs and outsourced processes. Compare purchase, batch and subcontracting records. Different distributors do not prove different upstream sources.
What if a supplier will not name its component maker?
Offer confidential review of supporting records with unrelated details concealed. If the source cannot be verified, mark it unknown and avoid claiming that the supply routes are independent.
Does using factories in different provinces reduce risk?
It can reduce exposure to a local interruption, but factories may still share components, tooling or transport bottlenecks. Check the specific disruption and the complete supply route.