Onshore, Nearshore, Offshore:
Optimizing Your Supply Chain Configuration
How to Optimize Across Onshore, Nearshore, and Offshore Locations to Diversify Risk, Increase Speed & Resiliency, and Minimize Future Disruptions
July 2020
Intended White Paper Audience
This paper is intended for the following decision-makers or companies:
that have encountered a major supply chain disruption (due to Covid-19 or other reason)
that are looking to improve the resiliency (reduced disruption risks) of their supply chain
that are looking to take advantage of incentives offered by the Defense Production Act or USMCA (to move supply chains to US, Mexico, Canada)
that wish to take advantage of greater speed to market through a shorter, faster supply chain (reduced lead times)
that wish to take advantage of cash-flow benefits and shortened cash-flow cycles (through shorter lead times for purchasing and delivery).
that wish to take advantage of lower customs/duty charges enabled by nearshoring/onshoring.
that wish to take advantage of improved communications within their supply chains (by placing facilities and home markets into similar time zones)
Introduction
As the world begins to emerge from the disruptions caused by COVID-19 and looks towards a “new paradigm,” many leaders are starting to shift from a short-term focus on execution and beginning to plan for the evolution of their businesses over the medium- and long-term. For decision makers at many companies, this will include critical strategic decisions of whether and how to reconfigure their supply chains.
Many companies will choose to double down on their existing structure and focus on improvements within their current operating model. Other companies, whether by choice or necessity, will begin to re-evaluate the processes, partners, and locations that make up their global supply chains, and in some cases to reconfigure how their supply chains are distributed across offshore, nearshore, and onshore locations.
This paper is intended to provide a guide for decision-makers at companies that are considering a shift in how their supply chain is distributed among offshore, nearshore, and onshore locations. The ultimate goal is to help companies diversify risk, increase speed & resiliency, and minimize future disruptions to their supply chains.
