How Nearshoring Can Positively Impact Your Business

What is Nearshoring?

Nearshoring is a cost-effective strategy for OEMs to bring operations closer to their corporate HQ or bring things back into the regional or local marketplace. For example, An OEM based out of the US manufactures their devices in Singapore. When those devices need to be serviced or fixed, the OEM sends the device back to the manufacturer’s HQ, taking upwards of several weeks to be received, evaluated or repaired, and returned, yielding a very high turnaround time.

The difference between nearshoring and offshoring is that a nearshoring partnership is in the base country or a nearby country, whereas offshoring partnerships are typically executed overseas (i.e., the OEM using the Singapore for manufacturing and servicing).

The Benefits of Nearshoring

Reduce Costs

OEMs who rely on sending products back to an overseas manufacturer face high freight costs due to increased prices and the availability of shipping containers, which have become scarce.

Nearshoring offers OEMs the capability to save on shipping costs by sending products closer to the end-user instead.

Better Turnaround Time

Due to proximity, nearshoring offers OEMs access to quick turnaround time. A ship sailing from Los Angeles to Singapore can take about 32 days. Meanwhile, ground transport within the domestic US can complete the trip within a couple of days, depending on the shipment method selected. With nearshoring, the product is sent, repaired, and returned in a matter of days. This faster turnaround time also leads to leaner inventories that may be used for loaners or exchanges to customers creating additional cost efficiencies.

Additionally, a nearshoring partner lives in a time zone only a few hours ahead or behind. This reduces communication lapses to streamline the process and collaborate in real-time.

Increased Customer Service

A nearshoring partner helps OEMs increase customer service and customer satisfaction. This quick turnaround time allows the OEM product to be sent, repaired, and promptly returned.

Effective service helps the OEM build credibility and trust with clients.

Reduced Carbon Footprint

Shipping products via plane, train, or shipping container emits a sizable carbon footprint. For OEMs that ship devices, choosing a nearshoring partnership can reduce gas emissions, waste, biocides, and more.

It helps your business take strides towards being more environmentally sustainable.

White-Glove Nearshoring Partner

Quest has far-reaching locations worldwide to serve our customer's needs. Quest can coordinate logistics and repair services at any number of sites worldwide, creating a consistent nearshore strategy across almost any region.

Our global locations allow OEMs to strategize which of our regional service hubs can serve as the best nearshore partner. With multiple locations to choose from, we can prevent long turnaround times and high costs so OEMs can provide improved customer service.

To learn more about how Quest provides White Glove Service, read our article here.

MAR-915 REV 1.0