Nearshoring has become a greater need at a time when the world is experiencing different problems that can somehow affect international trade, especially when cargoes must travel highly dangerous routes such as those of the Red Sea.
Given this, companies within the logistics sector seek to remain profitable by applying alternative strategies when formalizing commercial alliances with other countries, the being a great example, but what exactly is nearshoring and what other points should be considered when we talk about this type of logistics?
What is nearshoring?
Nearshoring is the logistics practice that consists of installing production centers in very close countries and with similar schedules to reduce operating costs and look for really viable alternatives that serve to increase the company’s revenues. A clear example of these strategies can be seen in the growing trade between the United States and Mexico with the aim of becoming less dependent on China, a country that currently maintains an ideological conflict with what is still the world’s leading power.
With respect to the latter, Mexico’s position is even enviable when we talk about logistics of this type, since, according to recent data, just over 45% of imports in that country come from the United States, but of course, it is also important to consider other decisive factors because of the good relationship that both nations currently have in terms of trade such as:
- The similarity of schedules between the two countries in addition to the proximity they have, being only divided by a barrier in the middle of the ground.
- The great professional competition that many of the qualified labor in Mexico have, making it extremely attractive when it comes to being hired by North American companies.
- The operating costs involved by many contractors located in Mexico are even cheaper than those offered by companies in other countries precisely because of the proximity in terms of being right next to the United States.
The positivism can be seen reflected in the words of Luis Manuel Hernández, president of the National Council of the Maquiladora and Export Manufacturing Industry, who comments that: “It is to bring assets to Mexico, to have the highest capacity, the greatest production capacity so that the orders fall to Mexico instead of in Asia.”
Benefits in this type of logistics for the supply chain
Among the benefits or advantages that nearshoring represents for supply chains are some with significant impact, such as: an increase in the number of suppliers, notable reductions in transit times and transportation costs, better communication with suppliers and customers, fewer complications regarding logistics and schedules for both parties, and a lower risk of physical damage during the mobilization of your products.
As complementary recommendations, the hiring of flexible cargo insurance that offers the best protection for your customers and brand reputation will always be an intelligent decision when it comes to nearshoring.
Sources:
Nearshoring: La solución actual para el comercio exterior. Thomson Reuters
El Nearshoring: Un pilar fundamental para fortalecer las cadenas de suministro. Industrial Insider
Nearshoring: qué es, ventajas y ejemplos. UNIR
