Issue link: https://iconnect007.uberflip.com/i/1507356
SEPTEMBER 2023 I DESIGN007 MAGAZINE 63 providing a competitive edge in the market. • Reduced order liability: Nearshoring helps in lowering the risk of order liabili- ties and financial exposure. By having multiple suppliers in different regions, a company can distribute its production volume, thereby avoiding over-reliance on a single supplier and mitigating the impact of potential disruptions on its business operations. • Increasing supply flexibility: Near- shoring provides companies with greater supply chain flexibility. In times of increased demand or unexpected changes in the market, having suppliers nearby allows for more agile and responsive adjustments to production levels, helping to meet customer needs without delays. Promoting Innovation A diverse supplier base can spark innovation within an organization. By engaging with sup- pliers from different backgrounds and indus- tries, businesses can benefit from fresh per- spectives, novel ideas, and unique approaches to problem-solving. Collaborative partner- ships with diverse suppliers foster a culture of innovation and drive the development of groundbreaking products and services. Diversifying Sourcing Beyond China: Benefits and Risks e pandemic has highlighted the weak- nesses of global supply chains and the lack of manufacturing autonomy in individual coun- tries, particularly when it comes to sourcing essential medical supplies like personal pro- tective equipment, ventilators, and medicines. e production of such items is largely con- centrated in China. In addition, the U.S.-China tariffs have impacted the supply chain. However, even before the pandemic, some companies in Europe and North America were already considering diversifying their sources of supply and reshoring production to their original sites. is was driven by factors such as increasing protectionism through tariffs, ris- ing labor costs, and calls for environmental sus- tainability. As a response to COVID-19, many multinationals have been prompted to think about diversifying their supplier base, looking beyond China. For example, Foxconn, Apple's