- Near- and Reshoring are not a temporary phenomena, but are both very relevant approachesto restructure supply chains in the future. Regional diversification is becoming more important.
- Increasing efficiency, improving flexibility and shortening delivery times are the main reasons for relocating operations to nearby countries – with cost reduction remaining relevant.
- Geopolitical tensions have a significant influence on supply chain decisions as a multipolar world with block formations is expected.
- Eastern Europe remains the focus region for Nearshoring activities of participating companies, while regions close to Europe, e.g., Northern Africa have a very low relevance among respondents.
Nearshoring Study Results 2023
The stabilization of global supply chains is making progress. But what are current priorities of companies in optimizing the resilience of their supply chains. Are companies considering fundamental restructuring such as nearshoring or friendshoring? In its latest survey KGM Strategy analysis to what extent these trends really influence the procurement and location strategies of companies.
Around 95 corporate and procurement decision-makers shared their views on supply chain trends in procurement with us and agree: Nearshoring and reshoring are not temporary phenomena.
Our structured Nearshoring approach supports the conversion of categories to alternative markets and increases supply chain resilience
Network transparency
- Creation of full transparency of current sourcing network and material flows
- Detection of previous supply chain disruptions at incumbents
- Identification of potential supply chain disruptions at incumbents
Criteria based evaluation
- Analysis of current status & potential scenarios to evaluate network based on different criteria e.g., risk, resilience, sustainability
- Comprehensive impact assessment of nearshoring measures including TCO with follow-up costs e.g., sales market, market share, certificates, etc.
Measure derivation
- Derivation of concrete measures and overall Nearshoring strategy
- Prioritization of derived measures and implementation planning
- Category and supplier selection considering defined criteria and expected impact versus effort
Implementation
- Identification of nearby alternative suppliers via market research
- Conduction of sourcing activities such as RfQ, negotiations, etc.
- Evaluation of quality and risk of alternative suppliers via audits
- Build-up of new supplier relations and intercultural competences
Here you can download the study free of charge:
To receive the results presentation, fill out the contact form. You will then receive the entire study by mail.
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