Manufacturers and businesses have learned the hard way that it’s dangerous to put their eggs in one global supply-chain basket. The massive supplier disruptions of the recent past compelled them to diversify their value chains instead of relying entirely on offshore providers in places such as China and India.  

 

Companies that can afford to are pulling manufacturing back to their own shores. As an alternative to reshoring, businesses found suppliers nearshore or “friendshore,” meaning countries considered allies by the U.S. and other democracies. Of these three strategies, nearshoring is catching on fast, with 88% of supply chain professionals at small and midsize businesses switching some of their suppliers to ones closer to home, according to a new survey. 

 

If you’re thinking of pivoting your supply chain strategy, you must navigate two levels of challenges in choosing new suppliers: economic efficiencies and ESG compliance. Download this e-book to learn about the advantages and disadvantages of nearshoring, friendshoring, and reshoring. Find out how to conduct supplier due diligence faster and better. Amid current geopolitical instability due to the Russia-Ukraine war, inflationary pressures, and a looming recession, take the necessary steps to boost your agility.