# China Sourcing Supply Chain Risk Assessment > Source: https://netray.co/tools/china-sourcing-supply-chain-risk-assessment > Publisher: Netray (netray.co), AI and integration engineering for ERP and manufacturing systems. > Section: Free Tools ## Short answer Ten questions that show how exposed your supply base is to disruption, tariffs and IP loss when you source from China, with suggested next steps. ## Category supply-chain ## Region China ## Audience - Supply chain manager - Sourcing manager - COO - Procurement director ## Tool **Kind:** assessment **Questions:** #### What share of your spend on critical parts comes from China? **Help:** Include indirect supply through distributors or sub-tier. **Options:** ##### Over 70 percent **Score:** 0 ##### 40 to 70 percent **Score:** 1 ##### 15 to 40 percent **Score:** 2 ##### Under 15 percent **Score:** 3 #### How many of your critical parts are single source? **Options:** ##### Most of them **Score:** 0 ##### Many **Score:** 1 ##### A few, with qualified alternates in progress **Score:** 2 ##### None, or all have a qualified second source **Score:** 3 #### Do you know where your suppliers' sub-tier suppliers and key raw materials come from? **Options:** ##### No visibility beyond tier 1 **Score:** 0 ##### Partial for a few suppliers **Score:** 1 ##### Mapped for critical parts **Score:** 2 ##### Mapped and reviewed regularly **Score:** 3 #### How would a tariff increase of 25 percent change your margin? **Options:** ##### Not modelled **Score:** 0 ##### Modelled once, not maintained **Score:** 1 ##### Modelled by product line **Score:** 2 ##### Modelled, with pricing and sourcing triggers agreed **Score:** 3 #### How much safety stock do you hold for China-sourced critical parts? **Options:** ##### None or under two weeks **Score:** 0 ##### Two to four weeks **Score:** 1 ##### Four to eight weeks by risk class **Score:** 2 ##### Set by calculated lead time variability and reviewed **Score:** 3 #### How is your tooling, mold and design IP protected at Chinese suppliers? **Options:** ##### No written agreement **Score:** 0 ##### Basic NDA only **Score:** 1 ##### NNN or equivalent plus tooling ownership terms **Score:** 2 ##### Agreements plus split manufacturing, marking and audits **Score:** 3 #### How do you monitor supplier financial health and operations? **Options:** ##### We do not **Score:** 0 ##### Only after problems **Score:** 1 ##### Annual review of credit and audit data **Score:** 2 ##### Ongoing monitoring with triggers and site visits **Score:** 3 #### Could you move a critical part to another country within six months? **Options:** ##### No, qualification takes longer than a year **Score:** 0 ##### Possible only with major disruption **Score:** 1 ##### Yes for some parts, plans exist **Score:** 2 ##### Yes, alternate sources are already qualified **Score:** 3 #### How well do your contracts handle price, currency and force majeure? **Options:** ##### Open PO terms only **Score:** 0 ##### Fixed price, no adjustment rules **Score:** 1 ##### Currency and material index clauses on some contracts **Score:** 2 ##### Defined clauses, reviewed with local counsel **Score:** 3 #### How quickly can you see open POs, in-transit stock and supplier status in your ERP? **Options:** ##### Manual spreadsheets **Score:** 0 ##### ERP data but weekly manual updates **Score:** 1 ##### ERP shows PO and ship status daily **Score:** 2 ##### Live view with exception alerts **Score:** 3 **Bands:** #### High exposure **Min:** 0 **Max:** 34 **Verdict:** A single disruption, tariff change or IP issue could hit revenue hard. **Recommendations:** - List critical parts and mark which are single source and China only - Start qualifying second sources for the top ten by revenue impact - Put written IP and tooling ownership terms in place before the next PO - Build safety stock for the highest-risk parts while alternates are qualified #### Moderate exposure **Min:** 35 **Max:** 59 **Verdict:** You have some protections but gaps remain in visibility and alternates. **Recommendations:** - Map sub-tier suppliers for critical parts - Model tariff and currency scenarios by product line and agree triggers - Set safety stock from lead time variability, not a flat rule - Schedule audits for the highest-risk suppliers this year #### Managed risk **Min:** 60 **Max:** 79 **Verdict:** Controls are in place for most areas. Focus on closing remaining gaps. **Recommendations:** - Qualify alternates for the remaining single-source parts - Automate exception alerts from the ERP for late or at-risk POs - Review contracts for currency, index and force majeure clauses with counsel #### Resilient **Min:** 80 **Max:** 100 **Verdict:** Your supply base shows strong controls and options. **Recommendations:** - Keep reviewing supplier health and sub-tier maps on a schedule - Run an annual disruption drill for a critical part - Check that alternates are still qualified and priced ## Content **Intro:** Sourcing from China can be cost effective, but concentration, tariffs, lead time variability and IP exposure add up. This ten-question assessment turns those factors into a score so you can decide where to act first. **Sections:** #### How to use the assessment **Body:** Answer for your critical parts, meaning those that stop a customer shipment if they are missing, not for the whole bill of materials. Each answer scores zero to three, and the result is shown as a percentage of the maximum. Do it with procurement, quality and finance in the room, since each function sees different gaps. Export the result to PDF and use it as the opening page of a supplier risk review. #### What the questions measure **Body:** The questions cover five areas: concentration (share of spend, single source), visibility (sub-tier and ERP data), financial exposure (tariffs, currency, contract terms), buffers (safety stock, alternates and time to switch), and protection (IP, tooling ownership, supplier monitoring). Concentration and switching time carry the most real-world weight, because they determine how long a disruption lasts once it starts. #### Turning the score into actions **Body:** A low score is not a reason to leave China. It is a reason to rank parts by revenue at risk and act on the top few. China-plus-one programs usually start with the most exposed single-source parts and the tooling that is hardest to move. Whatever you decide, record the owner, the date and the measure of success in the ERP or your risk register so the plan survives personnel changes. **Bullets:** - Rank parts by revenue at risk - Qualify alternates before you need them - Agree tariff triggers in advance - Review the assessment every six to twelve months **Cta:** If you want live dashboards for supplier concentration and open PO risk from ERP data, Netray can help build them on a private, read-only connection to your system. **Faq:** #### What is a China plus one strategy? **Answer:** It means keeping China as a source while adding at least one other country for the same or similar parts, to reduce concentration risk. The second source may be a different supplier or a different region owned by the same supplier. #### How often should I repeat this assessment? **Answer:** At least once a year, and after major changes such as a tariff announcement, a new product launch, a supplier ownership change or a disruption event. Track the score over time rather than looking at one result. #### Is a high score a guarantee of resilience? **Answer:** No. It is a self-assessment and depends on honest answers. Test it with a disruption drill, such as asking what happens if one critical supplier is down for eight weeks, and see whether the plan works in practice. #### Does this cover legal or regulatory advice? **Answer:** No. It is a screening tool for operations and sourcing. Consult trade counsel for tariff classification, export controls, sanctions and contract questions. ## Search terms China sourcing risk assessment, supplier concentration risk, China plus one strategy assessment, supply chain resilience score, single source China supplier risk, tariff exposure assessment, supply chain risk self assessment, dual sourcing readiness --- Talk to an engineer: https://netray.co/contact?intent=erp_ai | Machine catalog: https://netray.co/agent/catalog.json