Consumer goods & FMCG

A U.S.-based Consumer goods company found itself highly dependent on China for manufacturing, a strategy once driven by low costs but now fraught with risk. When U.S. trade policy shifted, punitive import tariffs on Chinese goods suddenly threatened to erode the company’s margins overnight. What had been a routine low-cost sourcing model was turning into a profitability crisis. Facing this challenge, the company engaged Qwinn Partners to design a data-driven solution. Qwinn’s team deployed an AI-powered sourcing optimization approach that went far beyond traditional spreadsheet analysis. The goal: model and compare multiple sourcing scenarios—from maintaining the status quo in China to shifting various percentages of production to alternative countries—to identify an optimal mix that would restore margins while mitigating risk.