Near Sourcing

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Near Sourcing

 

Near sourcing is a supply chain management strategy aimed at optimizing production and manufacturing processes by relocating them to locations in close proximity to the end consumer. This approach involves establishing new factories or warehouses near the market they serve or moving existing facilities from distant countries with lower labor costs but higher logistical complexities and expenses. Near sourcing enables businesses to reduce lead times, transportation costs, and overall supply chain risks by shortening the distance between production and consumption. By strategically positioning production facilities closer to the end customer, near sourcing enhances responsiveness, improves customer service, and allows for better coordination and control over the supply chain.

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