What is nearshoring and why is it good for your business

If you own a fashion business or you’re planning to start one, you are most likely familiar with the complex process of sourcing clothing for manufacturing. It is essential to find a supplier who can provide high-quality products while also meeting your specific needs. Since the pandemic a large number of fashion companies have decided to switch to local sourcing for clothing due to all the issues related to long distance transportation, but this has proven to be a solution that can provide numerous benefits to both your environmental impact and your business. In this article we will look at the advantages of local sourcing and how you can easily find manufacturers near you who can meet your specific needs.

What is nearshoring?

Let’s try first to define nearshoring by comparing it to its opposite, offshoring: Nearshoring allows businesses to outsource specific processes, such as textile manufacturing, to companies in nearby countries. Whereas offshore manufacturing refers to outsourcing operations to overseas territories in distant corners of the globe. So, more specifically, nearshoring is the practice of having the producer and end consumer close to each other. This comes with direct benefits for brands like lower transportation costs and emissions, faster and more reliable delivery times.

Offshoring was popular among businesses in countries such as the United Kingdom, France, Germany, Canada, and the United States, which struggled to manufacture products locally in large quantities at competitive cost per unit prices. As a result, prior to the pandemic, many businesses were offshoring manufacturing to countries on the other side of the world for cost reasons. However, with the struggles of a global health crisis, a new mindset has emerged, exploring ways to increase manufacturing at home or with nearshore partners.

What does Local sourcing mean?

When a company decides to manufacture its clothing locally, this can mean different things in different parts of the world. In some cases, this may imply that the company manufactures its clothing in the same country or city where it sells it. In other cases, it could imply that the company collaborates with local manufacturers to produce their clothing, either partially or entirely.

It’s important to remember that “local” doesn’t always mean the same thing. For example, a product may be labeled as “local” if it is manufactured in a nearby city or town, even if it is not sold there. Alternatively, a product may be labeled as “local” if it was manufactured in the same country as the customer purchasing it, even if it was not manufactured in their city or town. Local clothing sourcing can have numerous advantages for both businesses and consumers. Let’s find out what such benefits are.

The benefits of nearshoring

Lower costs: Local sourcing can save you money over time. Clothing sourced locally can help you reduce supply chain costs. Because local manufacturers are typically located closer to the brands with which they collaborate, they can save money on shipping and transportation. Furthermore, because local businesses frequently have lower overhead costs, they can pass the savings on to the brands with which they collaborate.

Lower environmental impact: When you source your clothing locally, you can positively impact the environment. Local manufacturing necessitates less transportation, lowering the company’s carbon footprint. Furthermore, because local businesses are typically smaller, they have a smaller environmental footprint than large, multinational corporations.

Greater transparency: Local clothing sourcing also promotes greater transparency throughout the manufacturing process. When you buy from a local brand, you can easily find out where and how their garments are made, and it may be easier to visit in person and meet the people you’re working with and see in which conditions they work. When purchasing from a large multinational corporation, this information is frequently much more difficult to obtain. As a result, sourcing local clothing can help you make more informed purchasing decisions and ensure that your collection is ethically and sustainably sourced.

Supporting local businesses: When you source clothing locally, you are not only supporting local businesses, but you are also helping to boost the local economy by bringing more revenue back to regional communities. By investing in local manufacturers, you enable companies to expand locally, thereby creating jobs and expanding the tax base in your area.

Simpler partnerships: Working on similar time zones means that business hours are relatively similar, making task coordination for teams in different countries easier. In comparison to offshoring, nearshoring provides easier access to manufacturing sites because partner countries are usually only one or two hours’ flight away, making business trips for quality control easier and less expensive. Businesses can benefit from advanced product supply chain oversight and control, which can improve product quality and reduce waste. Also cultural similarities imply not only similar time zones, but also shared cultural norms and fewer language barriers, resulting in improved communication and operational efficiency.

Greater control over the manufacturing process: Local clothing sourcing also gives brands more control over the manufacturing process. Local brands can easily monitor and adjust their production methods, ensuring that their garments meet their standards. Large global corporations, on the other hand, frequently have little control over how their garments are made because they frequently outsource production to factories in developing countries.

More flexibility: Local clothing sourcing gives brands more flexibility in responding to customer demand. Furthermore, because local manufacturers are closer to the market, they can more easily adapt to changes in customer preferences and produce smaller quantities of garments in less time. In today’s ever-changing fashion landscape, this agility is critical.

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How Manufy is helping fashion businesses to achieve/facilitate nearshoring

Manufy has the ambition to be able to facilitate a fully transparent textile supply chain and make it as easy as possible for brands to make the transition to near sourcing. Nearshoring is one of the most feasible methods to reduce the impact of the textile industry at the moment and we want to help European businesses to be able to look for production sources near them and discover the small European manufacturers they can collaborate with.

Sourcing locally on Manufy is easy and will take just just a few minutes. Start by creating a free profile and create a Request for Quotation (RFQ). With our easy module you provide our network of manufacturers with all information needed to create the products of your dreams. Let them know the product category, quantities, price you’d like to pay, shipping methods and certifications. Try to fill in as much info as possible and add a tech pack to your project. This really helps your chances of finding a suited sourcing partner.

Qualified manufacturers will respond to your RFQ with an offer of their own. Once they’ve made their bid, you can start chatting with them in your Messages Hub. Here you can get into the nitty-gritty details of the project. Get to know each other, negotiate terms and prices, share images and move your project forwards. When you find the manufacturer that feels right for your project, you’re ready for the next step.

Whether you’re looking for samples or go straight to production: Manufy guides you through all the steps. Easily start a sample order or full production run by clicking the start buttons in the chat with the manufacturer of your choice. All information is gathered in your dashboard, so no need for excel sheets or notepads.

Finding new manufacturers and doing business requires trust, your money is on the line. That’s why Buyer protection is in place on all orders done through our platform. Buyer protection allows you to make safe & secure payments via Manufy. This means that the manufacturer only gets paid once you’ve received your goods.

A nice perk that is totally on us is CO2 compensation. We compensate all CO2 emissions of orders done through Manufy! After your order is done emissions are calculated by a third party and Manufy compensates for these emissions by planting trees and investing in wind farms.

Sounds good right? Go to Manufy.com and start your nearshoring journey today!

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What is nearshoring and why is it good for your business

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