How to use Technology to Evaluate Opportunities in Reshoring
Supply chain experts have long favoured offshoring their manufacturing operations to inexpensive, international suppliers. However, due to circumstances and events such as country-wide closures, shipping delays, container shortages, the rise of fuel costs, geopolitical conditions, and pressures to reduce carbon output, many companies are starting to rethink this strategy. There has been a trend towards ‘reshoring’, or at the very least ‘nearshoring’ or ‘friendshoring’ (bringing supply chains geographically closer or with friendly nations, respectively).
What is reshoring?
Reshoring is the process of bringing manufacturing and other jobs back to a country, typically one that had previously outsourced those jobs to other countries in search of lower labour costs.
Reshoring your suppliers can be a very profitable process, but it’s crucial to be able to accurately evaluate its risks and benefits. As companies are seeking to reduce supply chain risk and improve competitiveness, technology can play a critical role in evaluating opportunities in reshoring.
With the right technology, you can accurately evaluate the overall cost of your existing supply chain, simulate a potential switch to another supply chain, and review “What-If” scenarios as new issues arise. With predictive analytics tools, you can analyze trends, patterns, and correlations in your data. This will help you identify potential issues and opportunities in reshoring and make informed decisions.
By using technology to evaluate opportunities in reshoring, companies can make informed decisions and optimize their supply chains for improved competitiveness and reduced supply chain risk.
Right now is the perfect time to invest in the right technology for this task and improve your overall business performance. This is because the Canadian Government has recently launched its Canadian Digital Adoption Program.
The Canadian Digital Adoption Program (CDAP) is a government-funded initiative aimed at supporting small and medium-sized businesses in Canada in their digital transformation efforts. It provides eligible businesses with up to $15,000 in funding for the creation of a digital adoption plan and access to an interest-free loan of up to $100,000 to implement the plan. The program also includes wage subsidies for the short-term employment of a student or recent graduate to assist with digitizing the business. The purpose of the program is to help businesses stay competitive in the market by boosting their technology and improving their understanding of their consumers, employees, and business.
The Answer Company is certified as a digital advisor and can help you create a detailed digital adoption plan to meet your transformation goals. If you want to learn more about this opportunity or get started with the CDAP, click here.
Watch our on-demand recording about reshoring with The Answer Company’s Director of Pre-Sales and Solution Design, Darren Redies, as he dives more into the real impact of these global challenges and how it affects organizations across all industries and businesses. He’ll cover the functional requirements needed in order to address these issues and how to leverage the built-in power of your technology stack so you’re better equipped to face ongoing disruptions and complexities in an increasingly demanding environment.