If you sell goods, they have to come from somewhere. It doesn’t make sense for all companies to manufacture their goods in-house, which is why many will outsource their manufacturing to offshore manufacturing companies. While the offshore manufacturing alternative to in-house manufacturing works well for some, it’s still not the best option for everyone. Have you considered nearshoring your manufacturing?
When you outsource your manufacturing to an offshore company, you have minimal opportunities for oversight, given how far away offshore companies tend to be. Timezone differences are practically guaranteed, further compounding the difficulty of having adequate supply chain oversight.
Because nearshoring outsources your manufacturing to a nearby country, you have much better oversight. There are fewer timezone issues which make it easier to communicate effectively with your nearshore company. You’ll have greater decision-making power and may deal with fewer cultural differences as well.
Costs are always a big deal for businesses. Many businesses find that outsourcing their manufacturing outside of the United States is better for their bottom line. Offshoring still may not be the most cost-effective option though. Nearshoring could save you more money. Manufacturing products in Mexico requires less capital to invest and a faster startup time.
That can make it a great nearshoring option for companies based in closeby countries. How much you pay to have your products shipped to you may also be influenced by how far they have to go. Due to the closer proximity of nearshore manufacturers, shipping may be more affordable.
Not only is shipping often more affordable with a nearshore manufacturer than an offshore one, but it’s also likely to be faster. The sooner you can get your products, the faster you can get them shipped out to your customers. No customer has ever complained about getting their order too soon. If anything, finding ways to deliver products more effectively and more quickly has been something of a pain point for businesses since the beginning of business itself. If you notice customers complaining about how long it takes to get their products, look closely at your process to see if where you outsource your manufacturing is impacting your times at all and if nearshoring might help.
Nearshoring your manufacturing gives you a way to outsource your manufacturing without the hassle of offshore manufacturing. It can be a nice middle ground between in-house and offshore manufacturing. Weigh the pros and cons of nearshore manufacturing against the option you’re using currently to determine if it’s a better alternative for your company.
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