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Practice paper

What is all the fuss about the shores? Sensible and practical reshoring and nearsourcing strategies

Hitendra Chaturvedi and Jeffrey Garza Walker
Journal of Supply Chain Management, Logistics and Procurement, 5 (4), 346-355 (2023)
https://doi.org/10.69554/DRSY2704

Abstract

Since the COVID-19 pandemic there has been a resurgence of conversation around reshoring. Rising protectionism has added fuel to the fire. This paper looks at reasons for the rise of this movement and analyses if this has strong legs, or just a knee-jerk reaction due to the global supply chain collapse arising post-pandemic. It also analyses business sentiments around the reshoring movement to bring to the readers reality on the ground. Furthermore, the paper proposes looking at the reshoring phenomenon as a true risk management process across the global supply chain rather than a reactive approach to reshoring. The paper puts forth a data-driven argument on how the post-pandemic supply chain fiasco has given the US and Europe a window of opportunity to balance its supply chain risk of complete manufacturing dependence on China. Post-pandemic, and for purely economic and strategic reasons, businesses in North America and Europe should be aggressively looking to create a viable regional alternative to China’s manufacturing monopoly to hedge risk, and to do that we have proposed a three-pillar strategy. The paper is not proposing that business move all their operations lock, stock and barrel to Latin America, as that is not a viable strategy.

Keywords: reshoring; nearshoring; outsourcing; China; Mexico; Latin America; manufacturing; supply chain; pandemic; risk; strategy; ESG; sustainability; suppliers; ecosystem

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Author's Biography

Hitendra Chaturvedi is a Professor of Practice in the Supply Chain Management department at the W. P. Carey School of Business at Arizona State University where he teaches supply chain management, sustainability, entrepreneurship and innovation. Before joining ASU, Hitendra had extensive experience as a global business professional with EY, A. T. Kearney and Microsoft, and subsequently as a successful entrepreneur where he built a sustainable reverse logistics company. Hitendra now sits on advisory committees of many start-ups, is co-chair of the Southwest Valley Chamber Logistics & Supply Chain Committee in Phoenix, Vice President, Global Manufacturing Research Group, Faculty Affiliate at the Walton Sustainability Program and an active speaker at various conferences. A celebrated author, Hitendra is considered an expert in supply chain strategy, global logistics, entrepreneurship, sustainable supply chains and digital supply chains, and widely covered by TV, radio and print media including CNBC, Associated Press, CNN, NPR, ABC, CBS, PBS, Fox, Washington Post, Washington Examiner, Yahoo, Inc. Magazine and many more.

Jeffrey Garza Walker MREDS, MBA, Executive Vice President, focuses on expanding NAI Horizon’s capabilities in global portfolio services through key industrial clients with requirements in North and Latin America. Additionally, he assists companies in Mexico seeking to place operations within North America. His background as a Senior Director of Corporate Real Estate in North/Latin America with a top-tier 4PL logistics company provides a capable skill set and 15 years of experience in commercial real estate brokerage/development. His professional client experience includes Footprint, Reyma Group, Sigma, WESCO, Chicanos Por La Causa, Scientific Games (now Light and Wonder), 3M and Emerson, among others. Jeffrey currently serves on the ASU MRED Real Estate Council, the ASU W. P. Carey Business School Mentor Program, as Chair of the Southwest Valley Chamber of Commerce, the US Green Building Council Arizona, the Phoenix Sister Cities Business Relations Committee, the ZoomInfo Customer Advisory Board, and as the MBEIC Vice Chair for the Pacific Southwest Minority Development Council. Additionally, Jeffrey is a US Armed Forces Veteran and Phoenix Business Journal ‘40 under 40’ recipient.

Citation

Chaturvedi, Hitendra and Walker, Jeffrey Garza (2023, June 1). What is all the fuss about the shores? Sensible and practical reshoring and nearsourcing strategies. In the Journal of Supply Chain Management, Logistics and Procurement, Volume 5, Issue 4. https://doi.org/10.69554/DRSY2704.

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cover image, Journal of Supply Chain Management, Logistics and Procurement
Journal of Supply Chain Management, Logistics and Procurement
Volume 5 / Issue 4
© Henry Stewart
Publications LLP

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