How to switch factories without stock gaps

Start after qualification, with a product-level map

This guide starts with a qualified replacement. Use the supplier qualification guide for the approval process. Qualification permits commercial ordering; it does not establish dependable receipt dates. Assign an owner to the transition schedule and agree who can release orders, accept batches and authorise the old source to stop.

Government supply-chain guidance identifies a clear supply-chain picture as the starting point for finding vulnerabilities. Apply that to each product and variant: record demand dates, usable stock, incoming batches, acceptance conditions and outstanding commitments. Switch products separately where their replacement readiness differs.

Schedule usable receipts, not sailing dates

Count stock that can actually fulfil the relevant customer demand. Exclude rejected or quarantined goods, incompatible revisions, expired goods and stock reserved for other customers. Either subtract reservations from stock or include them in scheduled demand, but never do both. Keep stock awaiting release separate from usable stock.

For every incoming batch, show dispatch, expected arrival, warehouse receipt and acceptance into usable stock. Allow for clearance, delivery, receiving checks and any planned correction work using current evidence from the parties involved. In each planning period, carry forward usable stock, add accepted receipts and subtract demand. Use the reorder-point guide for ongoing replenishment.

Size the final order and control the overlap

Work backwards from the replacement's usable receipt window. Add demand through that window and your agreed contingency, then deduct opening usable stock and old-source receipts already committed. The remaining requirement is the bridge-order starting point. Check the factory's MOQ, pack quantities, remaining materials and latest order-release date before agreeing the final quantity.

Schedule the replacement's initial commercial orders against confirmed capacity and acceptance gates. Where practicable, use the received batch's findings before releasing further volume. Check the combined stock peak, warehouse space and payment dates: overlapping receipts can prevent a shortage while creating excess stock and cash pressure. Use the overlapping-order cash-flow guide for the funding check.

Recalculate with a later replacement release and a rejected replacement batch. Agree what triggers an extra old-source order, expedited transport or revised customer allocations, and who approves the cost. Record when the old factory's production slot or material availability expires. A bridge plan is weak if the fallback cannot still be ordered when needed.

Close commitments before calling the order final

Reconcile open purchase orders, call-offs, deposits, unpaid balances, work in progress, dedicated materials, packaging and finished goods. Give each item an agreed outcome: complete and ship, transfer, hold, reduce or cancel. Record quantities, costs, ownership evidence, responsible people and written supplier confirmation. Do not assume that removing a forecast closes an accepted order.

Separate forecast demand from committed purchases using the forecast and call-off guide. Confirm access to tooling, drawings, retained samples and spare parts before losing the old factory's cooperation. Keep credits, defect claims and warranty support on the closure list even after routine purchasing ends.

Use a stop gate, then reconcile the actual handover

Approve the old-source stop only when replacement commercial goods have been received and accepted, the next required receipts have credible capacity and shipment plans, and the stock schedule covers demand through replenishment with the agreed contingency. Outstanding commitments need documented outcomes. A successful pilot or a booking confirmation alone does not satisfy this practical gate.

Record separate decisions for stopping new orders, completing old production, accepting the final receipt and closing the account. Keep batches identifiable by source and revision during the overlap. Update the schedule from actual receipts, defects and demand; reopen the bridge decision if cover deteriorates. Cambridge China Bridge's staff in China can help reconcile factory progress and handover evidence for the buyer's approval.