Securing the Supply Chain: Diversification Strategies for a Global LED Brand
How we helped a market-leading LED manufacturer navigate supply chain risks and create opportunities for strategic differentiation.
The challenge: mitigating risk and rethinking sourcing
A globally recognised LED brand, known for delivering high-performance visual solutions, found itself increasingly vulnerable to geopolitical tensions. Its core components, including cabinets and control systems, were sourced primarily from China.
With rising concerns around supply chain instability, tariff exposure and market access disruption, it needed a reassessment of sourcing strategies. At the same time, the brand sought to enhance product differentiation and reduce potential sales channel conflicts associated with vertically integrated suppliers.
The objective: explore alternatives and build resilience
To support the strategic shakeup, the brand engaged our Consulting and Advisory team to conduct a full-spectrum review of LED supply chain alternatives. Our brief was clear:
- Identify viable Out of China (OOC) and Out of Taiwan (OOT) supply chain options
- Assess LED manufacturing capabilities across North America, Europe and Rest of Asia-Pacific (RoAPAC)
- Recommend contract manufacturers that could align with the brand’s go-to-market strategy and avoid direct channel competition
Our approach: Supply chain mapping meets strategic sourcing
We began by characterising the global LED supply chain landscape and outlining the key macro challenges. These ranged from trade volatility and shifting tariffs, to growing regional manufacturing nationalism. We also included a detailed review of sourcing risks and strategic mitigation approaches employed across the broader electronics ecosystem.
Our analysis then turned to vendor identification and capability profiling. We mapped 36 primary suppliers across the value chain, including LED chip makers, driver IC vendors, controller manufacturers and power supply providers. This ecosystem was further segmented into three core categories:
- 20 China-based branded suppliers
- 21 international suppliers operating outside of China and Taiwan
- 15 qualified contract manufacturers offering end-to-end or modular capabilities
From there, for each manufacturer, we captured the geographic footprint, technology specialisations, integration flexibility and relationship models. We also flagged suppliers with a proven track record of operating without downstream channel conflict, which is critical for protecting the integrity of the client’s customer relationships and competitive positioning.
The result: Pure supply chain resilience in action
With this comprehensive dossier of strategic intelligence in hand, the client is now actively executing a diversification strategy to expand its manufacturing footprint beyond traditional strongholds. Our insights have not only provided a blueprint for reducing geopolitical risk. They have also identified partners that could support faster customisation, lower minimum order volumes and differentiated service models.
By realigning its supply chain with evolving global realities, the brand is now far better positioned to compete. It is more agile, more resilient and more strategically independent than ever before.
To find out more about how our Consulting and Advisory team can help you, visit our Consulting and Advisory solution page here, or talk to us today to find out more..