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Benefits and differences between ally-shoring, nearshoring, and offshoring

In the corporate world, ally-shoring, nearshoring, and offshoring modalities are emerging. These 3 are strategies under which companies redesign their production supply chains, generating benefits for the companies involved.

For there to be investment opportunities, there must be economic stability, a better legal framework, cultural and geographical similarities, these are not infallible formulas, but they are likely to work well with favorable willingness and conditions among the traders.

What is ally-shoring, and what are its benefits?

Ally-shoring is the process by which countries make changes to their supply chains and include other countries with win-win scenarios.

With the application of ally-shoring, industries obtain products and services from companies located in nations that provide certain reliability. We could say that it is a process that facilitates and encourages cross-border business.

This strategy arises from difficulties in relations between the western and eastern hemispheres due to certain economic and political conditions; faced with such a context, alternatives are being sought in South America.

In practice, Mexico becomes a key country due to its infrastructure and its ease of developing aspects such as:

  • Purchases and investment
  • Subsidies and funding
  • Extraction

What are the nearshoring benefits?

Nearshoring is the strategy of delegation of processes from one company to another with close geographic locations.

Under the figure of subcontracting, similar to offshoring, sought benefits between the parties are:

  • Greater contact with outsources
  • Reduction of transport times
  • Market adaptability thanks to cultural similarities
  • Ease of communication by the proximity of time zones
  • Operational flexibility due to manageable labor and commercial provisions

What is offshoring, and what are its benefits?

Another strategy based on the outsourcing of activities or services is offshoring. The objective of this is to reduce labor costs in most cases.

Although there are risks associated with this strategy, the outsourcing company weighs them taking into account benefits such as:

  • Costs reduction
  • Increased productivity
  • Opening to new markets
  • Specialized and accessible labor
  • Risk diversification

Differences between ally-shoring, nearshoring, and offshoring

Among the three supply chain strategies, there are certain similarities, but also marked differences:

• Ally-shoring (Reliable). It focuses on companies from stable countries.

• Nearshoring (Border). It focuses on companies in border countries.

• Offshoring. (Relocation). He focuses on companies that meet his interests.

Each of them presents advantages and disadvantages that companies must evaluate based on their interests. The objective will always be to get the most out of the business relationship that is being established. The choice of the strategy will depend on specific factors of each company.


Importance of its application in Chihuahua

For the Free and Sovereign Chihuahua, these strategies represent great opportunities for foreign investment. Due to its industrial infrastructure, this is the Mexican state with the highest performance in this area.

Chihuahua’s advanced manufacturing and industrial capacity make it a good candidate for the process and service outsourcing region.

Its strengths include its industrial infrastructure in automotive, electronics, information technology, and metalworking areas.

In addition, it has potential in other areas such as mining, agribusiness, aerospace, and health sciences.

Chihuahua Global, your gateway to North America

Chihuahua Global, like the Chihuahua, Mexico’s promoter and recipient of foreign direct investment. Strengthen the connection with international investors through highly-attractive agreements.

The alliances that it has achieved have resulted in a success, making the future of Chihuahua something promising. Facing foreign interest by redesigning their supply chains, the agency and industry networks must strengthen their relationships to attract investment.


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