Demand driven production benefits of nearshoring

As you probably have experienced or will, once you start your production journey, speculating on how much you will sell is a difficult task. Based on estimations you will decide on how many items you want to order so that you don’t have inventory left over at the end of the year.

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Overproduction and unsold inventory cause waste

This speculative approach of the supply chain can result in massive overproduction and waste. Overproduction has been a big problem in the industry for a long time, but it has gotten worse in recent years with the rise of fast fashion. An estimated garbage truck worth of textiles is thrown away or burned every second, according to the Ellen MacArthur Foundation. These issues were also aggravated in recent years by the Covid-19 outbreak, which resulted in the cancellation of billions of dollars worth of garment orders with manufacturers, many of which had already been produced.

On demand shopping is the future

One possible solution to this problem is for you to start nearshoring their production. Lead times on orders are reduced drastically because of the proximity of the manufacturer and end consumer, and are not hindered by global supply chain issues. With shorter lead times and more predictable delivery dates brands can rely more on data driven production, pre-orders and/or spreading their orders over the year. this also gives more income stability to the manufacturers which can also more favourable prices for long term orders.

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Manufy aims to connect European buyers, manufacturers and freelancers in an efficient, transparent and – most importantly – sustainable way. By doing this we hope to strengthen the European economy, create more support for local sourcing, provide in quality over quantity and help businesses of all sizes grow. Join Manufy today and be part of creating a sustainable future!

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