Onshoring or nearshoring production could provide more localized control of your supply chain. But how?
Onshoring or nearshoring production, which has increased since the pandemic, could give you more localized control of your supply chain in the event of disruptions and help you manage your cost base by decreasing the need for stored inventory. A shorter model could also allow you to react more quickly to shifting aspects like demand spikes, trends and changes impacting customer preferences.
When looking to reduce risks and optimize supply chains, your organization should avoid onshoring everything and carefully consider the next steps. Instead of focusing on onshoring or offshoring, you could aim to “right shore”, by structuring your supply chain to deliver improvements in areas like demand, cost, efficiency and margin.
Why is supply chain mapping important?
Defining supply chain mapping
Supply chain mapping is the method of documenting information across companies, suppliers and individuals involved in your supply chain, to create a map of your supply network. This map can help you identify opportunities and mitigate risks throughout your supply chain.
Why is mapping important?
Mapping allows you to implement strategies to swiftly react to supply chain issues, such as supply shortages, a lost order, a surge in demand or something unexpected.
Your organization can also develop a better understanding of surrounding costs, timeframes and risks, which provides an advantage over competitors that lack this information.
What are the benefits?
Mapping can help you:
- Strengthen your entire supply chain
- Identify where value is added or lost
- Mitigate the impact of risks before they happen
- Streamline and speed up processes
- Discover the elements that most impact cashflow
How we can help
Our technology and global managed service enable you to discover, analyze and monitor all suppliers, components and facilities across your supply chain. We use real-time data to reduce risks, identify component origins and ensure compliance.
Using cutting-edge, cloud-based technology and our global experience in product testing and certification, we allow you to:
- Check supplier certification and identify vulnerabilities
- Proactively reduce risks to your brand
- Enable quick and efficient responses to potential crises
- Provide customers with up-to-date information
- Gain consumer loyalty and trust
We offer supply chain mapping, visibility, product compliance and safety, from source to store, so you can minimize risks, such as fraud, unsafe facilities and unknown sources.
Our experts can also identify potential risks, helping you maintain production levels and guarantee product safety. Using risk-based analysis, we can advise you on the best strategies for risk mitigation.
With real-time data, we can plan, implement and monitor the effectiveness of intervention strategies, allowing you to respond efficiently to events as they happen. Transparent, up-to-date information leads to enhanced production and stronger consumer trust.
This is but an extract from our new Supply chain internationalization, risks and legislation – how experts, technology and customized audits are key white paper.
Contact us for more information.
About SGS
We are SGS – the world’s leading testing, inspection and certification company. We are recognized as the global benchmark for sustainability, quality and integrity. Our 99,600 employees operate a network of 2,600 offices and laboratories around the world.
