Supply chain diversification is crucial for several reasons:
1. Risk Management: Diversifying suppliers can reduce the impact of disruptions such as natural disasters, political instability, or economic downturns in a particular region. 2. Cost Efficiency: By sourcing from multiple suppliers, businesses can negotiate better prices and terms, potentially reducing costs. 3. Innovation and Flexibility: Working with diverse suppliers can introduce new technologies and methods, enhancing innovation and flexibility in production processes.