The report discusses the benefits of right-shoring, which aims to address the complexities of today's supply chain. China has been a major source of low-cost manufacturing labor for 25 years, but other countries such as Mexico, Brazil, Turkey, and Southeastern Europe have also emerged as additional labor hubs. However, the report notes that low labor costs are only one part of the equation and that procurement organizations should also consider the costs of freight, additional inventory, and tariffs. The report also highlights the challenges of Asia's remoteness, which can lead to slow response times and forced sales of inventory. Right-shoring can help address these challenges by locating factories closer to customers, improving responsiveness, and reducing transportation costs.
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