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Top 10 Benefits of Nearshoring Blog Feature
Anna Young

By: Anna Young on June 30th, 2019

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Top 10 Benefits of Nearshoring

Logistics & Supply Chain | Managed TMS | International & Cross Border Logistics

Definition of Nearshoring

nearshoring - offshoringNearshoring is where a business moves its operations to a nearby country from one of greater distance.

Nearshoring is a term that came out of the practice of offshoring, which is when companies move their product manufactured to a lower landed cost region than that of their native country.

The practice of nearshoring has become a hot topic in today's politically charged world trade environment where countries are increasing tariffs on other countries, thus increasing the total landed cost, to encourage manufacturing out of that country back into the home country or another country for its national benefit.

nearshoring saves time & money with freight

An important note to consider when adapting nearshoring is to ensure that providers have the high-quality technological requirements to make communication the most efficient. 

Supply chains are quickly adapting nearshoring in some industries to meet customers' needs and keeping sustainable practices. 

McKinsey & Company reports manufacturers (specifically in the apparel industry) are investing in nearshoring and automation to increase profitability and compete with online start-ups. 

Outsourcing has been a staple for supply chains, but nearshoring is changing the game in terms of capitalizing in producing out of house. 

For more on how to improve your supply chain: 

Supplychain-coaching-consulting -services-intek

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About Anna Young

Anna - Marketing & Supply Chain Intern for InTek Freight & Logistics, a company focused on being the place where companies come when faced with a logistics problem.

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