Many states are now taking steps to reopen, which allows businesses to return to their “normal” operating procedures. However, the pandemic is forcing companies to reevaluate their current supply chain management strategies. If another disruption of this magnitude were to hit, would their supply chain be able to survive another blow?
The conversations around nearshoring started when the tariffs imposed by the Trump Administration hit in late 2019. Despite the hit to their margins, many businesses continued to keep their supply chain based halfway across the globe with minimal consideration to options closer to their base operations. While keeping the supply chain primarily in one part of the world worked in the past, many decision-makers are now learning that this is no longer the case.
The businesses that have seen continued success throughout the pandemic were those that could pivot and adapt to the change in customer needs quickly.
With the marketplace still thriving in e-commerce, companies need a strategy to stay relevant to their consumers. How can businesses be responsive to current market trends if they’re reliant solely on partners halfway across the world? Shipping lead times alone derail the ability to stay ahead of competitors who can get their products to market in half the time.
Regardless of whether or not nearshoring becomes a new standard, a diversified network of vendors that includes nearshore partners is a strategic move for companies of all sizes. Not only does it improve speed-to-market and better margins over time across the entire supply chain, but it brings a new level of control and visibility into the production process for smarter forecasting and decision-making.