Nearshoring
According to “El Economista”: nearshoring consists of moving factories from the country of origin to a nearby one where everything is cheaper: the salary of the workers, the electricity and fuel, the inputs? and even taxes.
What is “Nearshoring” in Logistics?
Nearshoring in logistics refers to the strategy of moving logistics and production operations to locations geographically close to the company's home country.
Types of Nearshoring
Nearshoring can be classified into several types depending on the geographical location and the nature of the relocated operations. Some of the common types include:
- Regional: It refers to moving operations to countries or regions geographically close to the country of origin. For example, a company in Europe moving activities to neighboring countries.
Proximity: It involves moving operations to geographically close locations within the same country. This can apply at the state or regional level.
Vertical: It focuses on outsourcing specific activities in the supply chain, such as component manufacturing, to nearby locations.
Features
Terrestrial Control, as a logistics company, can use nearshoring in various ways:
Regional Logistics Centers: Establish logistics centers in strategic locations close to target markets to expedite the distribution of goods.
Efficient Land Routes: Plan shorter, more direct land routes to reduce transportation costs and improve delivery times.
Local Inventory Management: Adapt inventory management to regional demands, optimizing product availability in a localized manner.