WHY NEARSHORING IS A GAME CHANGER WHEN IT COMES TO CREATING SUPPLY CHAIN RESILIENCE

If the global pandemic has taught businesses anything, it’s that supply chain resilience is critical to future-proofing brand and business operations. Global sourcing and manufacturing are increasingly critical to meeting evolving consumer demands and sustainability requirements. And at the epicenter of that evolution is nearshoring.

But wait, what exactly is nearshoring?

Prior to the pandemic, the fashion industry in particular had already started to examine updating its antiquated sourcing models because they were notorious for long lead times, low flexibility and required large minimums to justify production. This in turn was a vicious cycle that led to overproduction and, eventually, discounts that drove revenue down. 

With increasing trade tariffs, longer manufacturing times, environmental concerns, and rising shipping costs, nearshoring has emerged as a solution, encouraging manufacturers to take production back home to its native country or as close to home as possible. 

When companies nearshore their manufacturing, they see lower environmental impacts and quicker turnarounds. They’re also far less susceptible to global supply chain concerns.

Why nearshoring should be a strategic imperative vs a reactive one. 

When pandemic brought global sourcing issues to a boiling point, brands learned that putting all of their eggs in one basket doesn’t work so well — especially when that basket is on the other side of the world.  

Supply chain disruptions can pop out of nowhere and, as a result, brands should expect the unexpected. Examining and evaluating vulnerabilities like material shortages and manufacturing location spread should be part of routine operations and forecasting procedure. 

Moving production closer to markets sometimes requires brands to foster multiple supplier relationships with the right location, but this supplier spread drives down the risk of supply chain delays. While preventative measures like supplier adjustments can feel tedious, they put you in a great position to handle unexpected disasters.

The good news: Defining a path forward is easier than you think

By now, companies have been able to regroup and analyze how COVID-19 has affected their businesses — giving them a much better picture of what to prioritize, when. If supply chain delays were one of the major issues you faced, it’s time to start thinking about nearshoring.

At Charming, we’ve realized the importance of a global presence in aiding our customers and, as a result, have responded by opening new locations around the world. Just this year, we’ve opened additional manufacturing locations in Mexico and Guatemala and are further updating our factories in Turkey, India, and Sri Lanka.

2024 Update: Check out our current list of global locations here.

Whether you’re a current customer looking to adjust your manufacturing location or a new prospect considering whether or not Charming is the right fit for you, don’t hesitate to get in touch with our team. We’ll help you bring a secure, reliable, and sustainable supply chain to life.