GlossaryEN1 min readUpdated: Jun 13, 2026
Diversification strategy
Rather than a cost-cutting exercise, diversification strategy focuses on deliberately spreading dependencies: a company sources goods from multiple suppliers, serves different customer segments, or uses various transportation routes and modes.
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Source: https://www.supplychaindive.com/news/how-diversification-improves-supply-chain-resilience/585778/
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Logistics Concept
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Definition & Explanation
Rather than a cost-cutting exercise, diversification strategy focuses on deliberately spreading dependencies: a company sources goods from multiple suppliers, serves different customer segments, or uses various transportation routes and modes. The aim is to minimize supply bottlenecks, failure risks, and market volatility. In practice, this means avoiding reliance on a single Asian component supplier by geographically distributing production sources or engaging multiple logistics providers in parallel. While adding operational complexity, effective diversification builds more resilient supply chains—particularly valuable following disruptions such as pandemics or natural disasters.
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