Near shoring refers to the practice of moving production or sourcing of goods and services closer to the end market. In a world full of supply chain uncertainties, near shoring is important for several reasons:
1. Reduced supply chain disruptions: Near shoring can reduce the risks associated with long and complex supply chains that can be disrupted due to factors such as natural disasters, political instability, and trade restrictions.
2. Faster delivery times: Moving production or sourcing closer to the end market can reduce delivery times, which can improve customer satisfaction and reduce the risk of stockouts.
3. Lower transportation costs: Near shoring can reduce transportation costs, which can make products more affordable for customers.
4. Improved quality control: When production or sourcing is closer to the end market, it is easier to monitor and ensure the quality of the goods and services.
Overall, near shoring can help companies reduce risks, improve efficiency, and increase competitiveness in an uncertain world.
However, nearshoring has also it’s set of risks. Amongst others are the risk of political and labour stability in the host country which may result in higher cost and product availability. Other risks include quality control and dependencies on single region.
Why not consider Malaysia for manufacturing?
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