Recent supply chain disruptions (from health crises to geopolitical conflicts to rising shipping costs) have highlighted the vulnerability of traditional logistics models based on distant offshoring.
In this new scenario, many companies are rethinking their sourcing and production strategy, seeking closer, more stable and sustainable solutions.
Near-shoring is an effective alternative for reducing risks, shortening delivery times and gaining control over logistics operations. By moving part of the production or distribution to countries close to the destination market, companies can optimize their competitiveness without sacrificing global efficiency.
For logistics operators such as Across Logistics this trend represents a key opportunity: to accompany companies that are reconfiguring their supply chain with flexible services, international coverage and in-depth knowledge of local markets.
What is nearshoring and why is it gaining prominence?
Near-shoring is a business strategy that consists of relocating part of the production, assembly or distribution to countries close to the main consumer market.
Unlike offshoring, which seeks to reduce costs by moving operations to distant regions (such as Asia), nearshoring focuses on geographic proximity and operational efficiency, allowing companies to remain competitive without relying on such extensive supply chains.
This approach not only responds to an economic shift, but also to an evolution in the way companies manage their logistics. Today, speed of delivery, flexibility in the face of demand and sustainability are as important as production costs. As a result, more and more companies are choosing to move their production closer to neighboring regions, prioritizing resilience and logistics control.
Nearshoring vs. offshoring: main differences
While offshoring seeks to maximize profitability by using the cheapest possible labor or resources, nearshoring focuses on optimizing the balance between cost, time and reliability.
By producing closer to the target market, companies reduce their exposure to external factors such as delays in maritime transport, port congestion, or fluctuations in fuel costs.
In addition, communication with suppliers and logistics partners is significantly improved, as the time, cultural and regulatory overlap facilitates operational coordination and decision making.
Nearshoring vs. reshoring: when is each strategy appropriate?
Reshoring involves completely repatriating production to the country of origin, which offers full control, but often at high costs.
On the other hand, nearshoring makes it possible to maintain an international production structure, but with less distance and greater logistical agility.
This alternative is particularly interesting for companies seeking to maintain a certain level of outsourcing, but within more predictable commercial and regulatory environments, such as those offered by neighboring regions within the same economic zone (e.g. Europe or Latin America).
Global factors driving nearshoring
The rise of nearshoring is closely linked to recent transformations in international trade:
Geopolitical and tariff tensions, which have encouraged companies to diversify their production centers.
🚢 Increased transportation costs and port congestion, making distant production less profitable.
♻️ Pressure for more sustainable models, which drive the reduction of the carbon footprint in logistics.
⚙️ Digitization and automation, enabling productivity to be maintained even in locations with higher labor costs.
Together, these factors have made nearshoring a strategic option for strengthening supply chain resilience and competitiveness.
Advantages of nearshoring in the logistics chain
Adopting a nearshoring strategy can significantly transform a company’s supply chain. By bringing production or distribution to the target markets, both operational and financial benefits are gained, as well as greater control over each stage of the logistics process.
In the current context, characterized by global volatility and the need to respond quickly to market changes, nearshoring represents an opportunity to increase the efficiency, traceability and sustainability of logistics operations.
Optimization of costs and delivery times
One of the main reasons why companies adopt nearshoring is to reduce logistics costs associated with distance. Transporting goods from nearby locations makes it possible:
🚚 Decrease shipping and intermediate storage costs.
📦 Reduce in-transit inventory and improve stock rotation.
⚡ Accelerate delivery times to the end customer.
In addition, shorter routes minimize dependence on long-haul shipping, which reduces the effects of price fluctuations or port saturation.
Increased operational control and traceability
Geographic proximity also improves coordination between production, logistics and distribution areas. By working with suppliers and logistics centers within the same time zone and regulatory environment, communication is more agile and potential problems are resolved quickly.
This translates into greater visibility of the entire supply chain, facilitating product traceability, real-time tracking and the implementation of continuous improvements.
Reduction of logistical and geopolitical risks
Nearshoring allows diversification of the supply chain, reducing exposure to external factors such as international crises, border closures or tariff variations.
By relying on more stable and closer regions, companies gain operational resilience and capacity to respond to contingencies. This is especially relevant in sectors where the continuity of the flow of goods is critical to maintaining competitiveness.
Commitment to sustainability and lower environmental impact
More and more companies are prioritizing logistics strategies aligned with their ESG (Environmental, Social and Governance) objectives. In this sense, nearshoring contributes directly to reducing the carbon footprint by minimizing transportation distances and optimizing the use of resources.
A commitment to closer production and logistics models not only improves environmental sustainability, but also the perception of the brand in the eyes of customers and investors who value responsible practices.
Challenges of nearshoring: key aspects before implementing nearshoring
Although nearshoring offers obvious advantages, its success depends on rigorous strategic planning. It is not enough to move production or distribution to a nearby country: it is necessary to analyze in detail the capacity of the environment, the logistical conditions and the associated costs.
Implementing this model without prior assessment can lead to inefficiencies or even new risks. Therefore, a number of factors should be taken into account before starting any transition to nearshoring.
Capacity and reliability of nearby suppliers
Not all neighboring countries have the industrial or logistical infrastructure to absorb demand. Before relocating processes, it is essential to assess the maturity of the local ecosystem, production capacity, quality standards and supplier response times.
In many cases, it will be necessary to invest in developing long-term relationships with new partners or to adapt internal processes to maintain product quality and consistency.
Redesign of logistics routes and transport flows
Nearshoring involves restructuring the logistics network. New production points require different routes, intermediate warehouses and operators specialized in regional or multimodal transport.
This redesign should consider factors such as infrastructure availability, land or maritime connectivity, and the ability to integrate with existing logistics systems.
A bad dimensioning of the routes can neutralize part of the expected advantages.
Contractual, legal and operational adaptation
Moving operations to a different country, even a nearby one, requires adjusting contracts, insurance and customs documentation as well as understanding the regulatory particularities of the new environment.
Aspects such as bilateral trade agreements, free trade agreements or tax differences can have a direct impact on the costs and viability of the project. Specialized logistical and legal advice is essential to ensure a smooth transition.
Hidden costs and regulatory barriers
Often, nearshoring projects are planned considering only the visible costs of transportation and labor. However, there may be hidden costs related to regulatory compliance, staff training, technology adaptation or investment in local infrastructure.
Likewise, regulatory or customs barriers can delay operations if not proactively managed.
A comprehensive financial and logistical analysis makes it possible to anticipate these factors and avoid budget deviations.
How to evaluate if nearshoring is the right choice for your company
Before committing to nearshoring, it is essential to conduct a thorough analysis of the current situation of the company and its supply chain. Not all operations or sectors benefit equally from this model; therefore, it is important to objectively assess the costs, operational capacity and associated risks.
The goal is not only to bring production closer together, but to ensure that the change brings real value in terms of efficiency, control and sustainability.
Logistic and financial indicators to be analyzed
A nearshoring decision should be based on concrete metrics that allow comparing scenarios. Some key indicators are:
📦 Total transportation cost (including routing, insurance, duties and warehousing).
⏱️ Average transit and delivery times, both in export and domestic distribution.
📊 Level of on-time performance (OTIF) and service reliability.
💰 Inventory cost and stock rotation at each logistics point.
🔄 Operational flexibility in the face of variations in demand.
Analyzing this data makes it possible to identify whether the savings and efficiency improvements offset the initial investments required for the change.
Assessment of actual risks and benefits
Nearshoring should not be understood solely as cost reduction, but as an integral optimization of the supply chain.
Therefore, the analysis should include both expected benefits (such as reduced exposure to global risks or improved sustainability) and potential risks (dependence on new suppliers, capacity constraints or regulatory barriers).
A useful tool in this process is the logistics decision matrix, which weighs financial, operational and strategic variables to determine the feasibility of relocation.
Situations in which nearshoring is not advisable
Although nearshoring is gaining popularity, it is not always the most appropriate option. Some scenarios where it may be less efficient are:
🏭 Sectors with highly specialized or automated production processes, difficult to replicate in new countries.
📈 C ompanies with consolidated economies of scale that would lose competitiveness by fragmenting their production.
💰 B usiness models where labor cost remains the dominant factor and distances do not significantly affect profitability.
In these cases, it may be more convenient to optimize existing logistics or to partially diversify production without complete relocation.
Across Logistics: your international logistics partner
In a global environment where agility and reliability make the difference, having a comprehensive logistics partner is key to ensuring the success of any operation.
Across Logistics combines its own international network with a close and flexible management, offering solutions adapted to the needs of each client.
With a presence in Europe, Asia, the Middle East and the Americas, the company manages sea, air and land transport, as well as warehousing, customs and distribution services. This structure makes it possible to offer complete, transparent and results-oriented logistics.
At Across Logistics, we work as an extension of your team, providing visibility, efficiency and confidence at every stage of the supply chain.
If you are looking for a partner capable of accompanying you in your international growth, contact us and find out how we can and find out how we can optimize your global logistics.
