doing the legwork to understand the new regions we can source from , and what measures and arrangements we need in place to do so .”
The key challenges of a nearshoring strategy Resnick believed that : “ Inevitably introducing multiple sourcing locations , can result in increased inventory levels , and a resultant working capital challenge .
“ Organisations need to be comfortable that they have supply chain partners they can trust , and who will prove reliable in the new chosen markets which they may not have had much experience in previously .”
While Draper held a different opinion , adding : “ The main concerns for nearshoring are availability of consistent quality products and pricing . If near shore had always been an option , then availability of the product volumes would typically not be a significant issue as that supplier would be an established part of the supply chain in a given industry .
“ Pricing is an age-old near shore challenge and increased pricing in the supply chain means higher sales prices , with the knock on effect of not being as competitive as your rivals .”
David Ziller , Vice President , Brookfield Properties believes : “ In Europe , we ’ re already experiencing a shortage of warehousing space due to the increasing
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