Nearshoring is a strategy to accomplish what goal?

• A. Moving production closer to home country to reduce lead times
• B. Moving production to far-away low-cost regions
• C. Exporting goods to nearby markets
• D. Building plants in distant continents

Answer: (A)

Nearshoring focuses on locating production closer to the market it serves to speed up delivery and make the supply chain more responsive. By shortening the distance goods must travel, lead times decrease and the ability to adjust to demand changes improves. That’s why the option describing moving production closer to the home country to reduce lead times captures the essence of nearshoring. Shifting production to far-away, low-cost regions describes offshoring for cost, exporting to nearby markets doesn’t change where things are made, and building plants in distant continents is another form of offshoring. The proximity to the market to speed delivery is the key idea.