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2020 taught us significant lessons as crucial comprehending of Global Supply Chains (SC) volatility. Offshoring manufacturing comes to a standstill worldwide, pressing organisation to uncover different approaches to meet demands and explore possible Reshoring potential.

Organisations looking for ways to save margins in-shore sourcing and mitigate risks in SC must count on predictable transportation.  They can get to the bottom of both issues by using a modern Transportation Management System (TMS) whilst taking control of the SC and making users more competent and cost-saving for local transportation operations.

Trends headed for Reshoring

As the COVID-19 pandemic persists, numerous organisations made a great effort to close gaps on their supply-side since trade stakeholders worldwide interrupted manufacturing processes. Even when manufacturing recovered, global transportation suppliers still were not ready to transport products at the same speed.  The shortage of lorries drivers in numerous countries, or overloaded ports on countries shores, and bringing in shipments from other countries evidenced critical challenges.

Even with the offshoring issues caused by COVID, Reshoring was not ready to make a pre-pandemic renewal. We still have not recovered from the previous recession -offshoring slows as wages rise in some emerging economies; even Chinese manufacturers began offshoring. Increasing labour and costs in countries like China have elicited questions around how much savings offshoring delivers.

Supply Chain factors to weigh up when Reshoring

Re-assessing sourcing is complex; we must consider the multitude of factors before making any decision. However, incredible amounts of organisations assume this modification and variables beforehand, as reshoring circumstances prove invaluable benefits when applied.

The question here is if suppliers could produce goods quality to meet customer’s expectations.   Can higher manufacturing costs moderate the global trade risk? Is it right to bring in the whole lot back to reinforce near-shoring or generate a corresponding SC for an extra safety net?  A modern TMS can enhance your outcomes and streamline your new domestic transportation requirements.

Questions around building competencies and saving money

·       Is your manufacturing abroad located at the same port?

·       Do you have a domestic TMS?

·       Are you building competencies and saving money for your new domestic transportation?

·       Does your domestic TMS produce advanced automation, shipper rating, and involve freight options to maximise cost savings?

·       Is it pandemic resilient and cloud-based so your workers can operate it everywhere?

·       Are you managing your new volumes?

·       Have you checked the TMS market in the past five years?

·       Do you have technology improvements, especially around usage, making the process simpler to meet challenges?

·       Is it scalable enough to manage raised domestic volumes with your existing staff?

A domestic transportation system offers many tools to bring manufacturing back home, such as raw materials and finished goods.

.       Boosting Purchasing Transportation – It is a priority to save money on raw materials, so it is advisable to buy low prices. Route planning will automatically generate the most well-organised and cost-effective lanes to transport your buys to your manufacturing centres.

·       Real-time complex Carrier Rating – This tool affords and locks up real-time carrier ratings, so you get the market rate on freight transportation, letting you select the most reasonably priced way to transfer your freight.

·       Load Consolidation Automation – Save money by automatically maximising trailer capacity with load consolidation, giving you the most benefits on each move without seizing up your worker’s valuable time.

·       Dynamic Freight options  Obtain the most economical opportunity to move your freight, whether through Truckload (TL,) Less-than-Truckload (LTL) parcel, multi-stops, dynamic pooling, to put together a scalable transportation-strategy web in complex conditions, like different routes, transporters, loading types, delivery services, and other variables.

Further comments: Taking advantage of advanced technology can boost your Reshoring projects whilst diminish issues related to your new domestic transportation requirements.  To support Reshoring attempts, automation and supporting software are essential for a successful project that delivers visibility and optimisation, crucial for monitoring costs, decision-making support, and customer service, linked to Supply Chain Management.

Are you taking advantage of the Reshoring approach to protect your domestic TMS?

Dave Food

Prophetic Technology

M: +44 7775 861863


Photo credit: pxfuel.com

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