Tech supply chain nearshoring interest spikes

Tech supply chain nearshoring interest spikes

Summary: A UPS-IDC survey found that 27 percent of technology logistics execs are eyeing near shore strategies to improve customer service

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TOPICS: CXO, Outsourcing
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Interest in the nearshoring technology supply chains has tripled since 2010, according to a recent survey by UPS and IDC.

The survey found that 27 percent of technology logistics execs are eyeing near shore strategies to improve customer service. The overall goal is to move supply chains closer to end demand.

According to the UPS Change in the Supply Chain survey, conducted by IDC, 77 percent of respondents said they want to improve service levels via near shoring. Nearly 55 percent of execs said protecting intellectual property and quality was driving near shore interest.

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However, nearshore strategies haven't hit a groundswell. Eighty two percent of high-tech execs in the U.S. say they will continue to use low-cost manufacturing countries like China to drive their supply chains.

Other points worth noting:

  • 41 percent of execs expect exports to grow faster over the next two years.
  • Two-thirds of respondents have either established operations in emerging markets or plan to.
  • 19 percent of execs say they have trouble understanding the appeal of products in new markets.
  • 71 percent say they were hoping to reduce lead times in their supply chains with 68 percent improving fulfillment.

 

Topics: CXO, Outsourcing

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