This shift in value proposition requires new approaches to quantifying benefits.
“ That value, while sometimes challenging to calculate, is the case for nearshoring,” says Mary.“ Cutting out lead time reduces risk in the supply chain.”
Beyond the business case, implementation challenges abound. Operations leaders identify the tax environment and a lack of local skills as the most significant challenges when shifting supply chains within the US or the wider region.
“ Taxes and tariffs certainly are more variable and regulations continue to be unpredictable,” emphasises Mary.
Sustainability considerations As is the case with a growing proportion of modern-day business decisions, sustainability is having a big influence on supply chain configuration.
On the plus side, strategic shoring can help reduce an organisation’ s carbon footprint by minimising the environmental impact of their products, with some regions offering particular advantages in this regard.
“ Latin America looks attractive due to its abundant natural resources and developed hydropower, which provide about two-thirds of its electricity from clean sources,” continues Mary.
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