Onshoring — My Observations: Advantages and Threats

Hello! Today, I would like to discuss a topic that has been gaining popularity in the business world lately — onshoring. In brief, it is a strategy where a company relocates its processes, services, and business operations from abroad back to its home country. Why is this so important? What are the pros and cons of onshoring? Could it be a solution for our company? I will share some of my thoughts on this matter.

Advantages of onshoring:

• Cost Reduction: It’s quite surprising, but onshoring can lead to greater savings. Less expensive transportation and logistics and domestic employees are often cheaper than those in foreign branches. That’s always tempting, isn’t it?

• Greater Control over Key Operations: Moving operations back to the home country gives the company control over the entire process. We can respond more quickly to issues and changes, which improves the quality of products and services. It feels like greater peace of mind.

• Shorter Delivery Times: International transport takes time, meaning customers have to wait longer for deliveries. Shifting production to the home country shortens delivery times, increasing customer satisfaction. Satisfied customers usually translate to business success.

• Support for the Local Economy: Onshoring contributes to the development of the local economy by creating new jobs and increasing demand for local products and services. It gives us a sense of satisfaction.

Comparison of Onshoring and Offshoring
Offshoring involves moving operations abroad, and the difference between offshoring and onshoring lies in the fact that onshoring brings processes back to the home country. The advantages and disadvantages of both solutions are clear. Offshoring can provide savings but may be challenging to control remotely. Onshoring offers control and shorter delivery times but may come with higher costs. It needs to be balanced wisely.

Examples of Companies and Their Experiences
It’s worth mentioning that many well-known companies, such as Apple, Nike, and GE Appliances, have relocated their operations to their home countries and benefited from it. Greater Control over Production Processes — Bringing production back to the home country allowed these companies to have better control over the manufacturing process, leading to higher quality products and services. I think this could be highly beneficial. Shorter Delivery Times — Customers received products more quickly, resulting in greater satisfaction and loyalty. That sounds like something we all need in business. Support for the Local Economy — Onshoring contributed to the growth of the local economy by creating jobs and increasing demand for local goods and services, which is beneficial for every community.

When Is Onshoring Worth Considering?
If we want to increase control over processes and shorten delivery times, onshoring is worth considering. We also need to assess whether costs in the home country are competitive or lower than production costs abroad.

What to Consider When Making the Decision?
When choosing onshoring, it’s important to consider costs, process control, delivery times, the local job market, resource availability, and employee qualifications. This requires careful consideration.

Summary
Onshoring is an intriguing business strategy that can provide us with greater control, shorter delivery times, and support for the local economy. However, the decision to onshore must be carefully thought out and tailored to our needs and capabilities. Thank you for taking the time to read this post. I hope it has provided valuable insights into onshoring. Take care and be ready for new challenges in the business world!