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  • Writer's pictureLetyant Butrón

Nearshoring & the relevance for supply chain technology.


Importancia del nearshoring en méxico

Nearshoring emerges as a strategic and efficient solution to current challenges in supply chain technology. Offering significant benefits in terms of cost reduction, transit time, and uncertainty mitigation, this trend is reshaping how North American companies approach manufacturing and professional services. Near manufacturing operations and the availability of skilled professional services in the near region not only optimize logistical processes but also provide a viable alternative to the current complexities of the global market. Simultaneously, collaboration with robust and experienced technology partners like Körber Supply Chain is crucial to ensure effective and tailored solutions in supply chain management. 


Qué tan fácil es hacer negocios con los países Latinoamericanos

From manufacturing to professional services, nearshoring offers U.S. and Canadian businesses a range of advantages, including lower labor costs, reduced transit times, and reduced geopolitical risks. In the realm of manufacturing, near operations to the U.S. and Canada are producing high-quality goods while maintaining cost efficiencies and meeting stringent delivery standards. On the other hand, the availability of cost-effective, skilled IT professionals in Latin America provides North American companies an attractive opportunity to outsource professional services, especially in a context of local talent shortage. Additionally, the USMCA free trade agreement reinforces these opportunities by establishing clear rules that benefit trilateral trade. Supply chain execution solutions, such as those offered by Körber Supply Chain, are essential to fully leverage the advantages of nearshoring.


 

Five key advantages of nearshoring in supply chain technology


The increasing importance of nearshoring in supply chain technology, particularly for companies in the United States and Canada. Nearshoring, which involves relocating operations to nearby countries such as Mexico, Central America, and the Caribbean, offers several key advantages:


  1. Improvement in Manufacturing: Manufacturing operations in these nearby regions are producing high-quality goods for the U.S. and Canadian markets. These operations are crucial for maintaining cost efficiencies and meeting strict quality standards and delivery times.

  2. Cost and Transit Time Reduction: Nearshoring provides access to skilled labor at lower costs and significantly reduces transit times and costs, which are vital for effective supply chain management.

  3. Risk and Uncertainty Mitigation: By nearshoring, companies can avoid some of the risks and uncertainties associated with manufacturing and professional services in more distant regions, such as geopolitical issues and disruptions in the global supply chain.

  4. Professional Services and IT Technology: Nearshoring also encompasses the outsourcing of professional services, particularly in IT. Latin America, in particular, stands out for its growing pool of skilled IT professionals, offering a cost-effective option for North American companies.

  5. Benefits of the USMCA: The USMCA trade agreement between the U.S., Mexico, and Canada further boosts nearshoring by establishing clear rules for trade, further facilitating these operations.


 

To gain a more in-depth understanding of how nearshoring can revolutionize your supply chain strategy and to explore customized solutions that fit your specific needs, we invite you to read the full article and download the e-book.

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