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Nearshoring and Reshoring Mitigating Global Supply Chain Risks

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  • Lawrence, Alice

Abstract

The fragility of global supply chains has become increasingly evident in recent years, driven by factors such as the COVID-19 pandemic, trade wars, and geopolitical instability. In response, companies are reevaluating traditional sourcing models and turning toward nearshoring and reshoring as strategic tools for mitigating risk and enhancing resilience. Nearshoring refers to relocating production closer to consumption markets, often within the same region, while reshoring brings operations back to a company's home country. This study examines the motivations, challenges, and implications of these shifts, drawing on empirical data, industry case studies, and recent supply chain analytics. The analysis highlights how proximity can improve responsiveness, reduce transportation vulnerabilities, and align supply chains with shifting consumer and regulatory expectations. However, it also considers the limitations, including labor shortages, infrastructure readiness, and potential cost increases. Ultimately, the paper contributes to a broader understanding of how firms can balance global efficiency with localized control in an increasingly uncertain economic landscape. Keywords: Nearshoring, Reshoring, Supply Chain Management, Risk Mitigation, Global Disruptions, Strategic Relocation, Manufacturing Resilience, Localization, Trade Policy

Suggested Citation

  • Lawrence, Alice, 2024. "Nearshoring and Reshoring Mitigating Global Supply Chain Risks," OSF Preprints 5atfw_v1, Center for Open Science.
    • Handle: RePEc:osf:osfxxx:5atfw_v1
    DOI: 10.31219/osf.io/5atfw_v1
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    References listed on IDEAS

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    1. Md Maruf Hossan Chowdhury & Priyabrata Chowdhury & Mohammed Quaddus & Kazi Waziur Rahman & Sakib Shahriar, 2024. "Flexibility in Enhancing Supply Chain Resilience: Developing a Resilience Capability Portfolio in the Event of Severe Disruption," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 25(2), pages 395-417, June.
    2. Krishna Chaitanya Raja Hajarath & Jayapal Reddy Vummadi, 2024. "Enhancing Supply Chain Resilience: Proactive Strategies for Disruptive Events," International Journal of Supply Chain Management, IPRJB, vol. 9(3), pages 1-11.
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