DIGITAL ECOSYSTEM
With tariffs , sustainability concerns , geopolitical challenges and lingering concerns from COVID-19 , what are the challenges facing procurement and sourcing teams to adopt nearshoring strategies ?
With more businesses around the world looking to bring production closer to home , there is a mood from many procurement teams to move things closer to their end consumers . This move is to try and reduce costs , improve sustainability reporting and reduce the risks involved in their supply chain .
Why are so many companies considering nearshoring strategies ? “ The disruption caused by the pandemic led to a lot of businesses reviewing the structure and stability of their supply chains ,” explains Saul Resnick , CEO of DHL Supply Chain UK & Ireland . “ This highlighted the advantages of nearshoring , as well as multi-shoring and using different geographical sources , which allows for more flexibility and resilience through unexpected peaks and troughs .”
Dean Alms , CPO of Aravo , added : “ The product shortages we experienced during the pandemic have forced business leaders to confront the fragility of global supply chains . The reliability of critical markets , such as China and Ukraine , and the availability of significant trade routes , namely the Red Sea , Suez Canal , and Panama Canal , have been seriously undermined over the last four years . procurementmag . com 97