What are the Benefits of Nearshoring in the Current Climate?

We have looked at the difference between Nearshoring and Offshoring (link to Blog 1) as a form of outsourcing, but now we want to outline the benefits of Nearshoring for your business in the current climate. 

For the most part 2020 has been a fairly uncertain time for many individuals, and the apprehension has been no different for organisations. The process of conducting business with partnerships, suppliers and others within a close knit environment is increasingly becoming the norm. Travelling by plane and staying further afield has become more complex with the risk of quarantine and self-isolation becoming commonplace. This could mean that business dealings and the circles they move in could become smaller and smaller in a bid to keep things moving within the current circumstances.

As we know, Nearshoring is a type of outsourcing which allows businesses to appoint certain processes to companies or individuals in outside organisations, in order to be more efficient and reduce costs. When companies are deciding which kind of outsourcing to implement they can often overlook the proximity of the organisation, but this should be an important part of the decision making process. So how is nearshoring particularly beneficial at this time?

Travel distance:

The further apart companies are from their off or near shoring suppliers, the more expensive it can be to delivery shipments which, of course, includes the cost of time. Companies based geographical nearer to each other will share similar working hours meaning problems can be fixed in real time without having to wait long periods of time for responses, this is critical when timely decision making is key. 

This is a clear advantage at this time when travel between countries is unstable, unreliable, and office hours are not what they once were with many staff working from remote locations.

Cultural Similarities:

Some of the key benefits to nearshoring are similar time zones and cultural practices as well as better communications as language barriers tend to be less of an issue. This has a huge knock on effect as a language barrier can all too often slow down communications and hinder processes that should otherwise be more efficient.

With organisations operating in close proximity it offers a somewhat more secure environment whilst it is unclear when and where the next peak of COVID-19 will occur. This kind of risk would be better managed with partners, suppliers and associates who are all located within the same country or close proximity with each other. 

Lowering Costs:

During uncertain times cost is a big focus, cutting unnecessary spending and focusing on running efficiently and cost effectively. Near shoring outsourcing means certain processes can be delegated to a lower cost organisation which is better prepared to deal with the requirements.

Companies who have survived the pandemic thus far have adapted and learnt better, more efficient ways to compete under increased pressure. How and where you outsource depends largely on the goals and objectives of your organisation, however with the combined uncertainties of Brexit and the current pandemic, keeping outsourced operations close to home has evident advantages. 

As an international freight management Group and with operations across Europe, Xpediator is well positioned to support businesses with their offshoring and/or near shoring logistics and distribution requirements.

Contact us today to see how we can help your business.

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03 11 2020
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