Tips to Stay Competitive When Re-Shoring

As the re-shoring trend continues to build steam due to Trump's emphasis to bring manufacturing back to America, the spotlight will be on supply chain managers to increase transparency. Transparency, if not done correctly can lead to a loss in competitiveness. Here are three tops to stay competitive while re-shoring.

Third-Party Verification: Consumers have lost some confidence in regulatory oversight after the relationship between government regulators and industry have been described as “incestuous” in some cases. Verification by impartial third-parties can be an effective demonstration of ethical compliance for complex supply chains. Third-party verification has a longer history in the apparel and food industries, and seems likely to spread into other industries.

Green Chemistry Movement: Consumers increasingly worry over the safety of product ingredients. What can companies do? The “green chemistry” movement will continue to gain momentum. It will inspire innovation since currently few options exist for certain ingredients, and consumers seem more patient of the presence of controversial ingredients like phthalates and formaldehyde when they know that a company actively seeks replacements.

American Energy Revolution: Many re-shoring decisions have more to do with costs other than labor, and energy is perhaps the most important. America's energy revolution consists of increased energy independence and the strong growth of “green” energy. As a result, our energy costs 30-50% less as compared to competing nations', and is likely to continue improving. Auxiliary factors such as the possibility of infrastructure improvements may lead to even greater efficiencies—and every dollar of waste avoided increases the competitiveness of re-shoring.

Supply chain managers who are ready for the next wave of supply chain reinvention and redesign will gain considerable competitive advantage. Leaders will earn consumer trust by focusing on transparency of supply chain relationships, product content, and operational processes.

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