For American companies looking to improve quality, minimize costs, and keep inventories lean, there is a valuable alternative to offshoring. The alternative is nearshoring. This is using South American vendors and suppliers to make your production more efficient. When you outsource by nearshoring, you are taking advantage of the cost savings and other benefits of offshoring, without some of the hassles, time constraints, and quality issues that can come with outsourcing to the far east.
Primary Benefits of Nearshoring
More American companies are discovering the benefits of nearshoring which include:
- Reduced Production Costs. Fueled by lower labor costs and lower raw materials expense, nearshoring can help companies lower their production costs.
- High quality materials and products. South American companies continue to build a reputation for quality production and access to quality raw materials.
- Proximity. American retailers are discovering that nearshoring places them much closer to their suppliers. This improves speed-to-market while allowing them to minimize inventory levels. It also greatly reduces freight and shipping costs.
These benefits and more are causing an increasing amount of US companies to consider nearshoring as a cost-effective and productive alternative to long-distance offshoring.
Peru: A Clear Nearshoring Choice for the Textile Industry
Peru, in Northwestern South America, has established itself as a nearshoring option across the textile industry. For years, many small mills have served to develop a skilled workforce in the country. As the industry in Peru becomes less fragmented and the development of larger, innovative and technologically advanced producers like Solara Hosiery gain market share, Peru’s place in textile manufacturing is further solidified.
Peru’s low labor and material costs and access to quality materials are just the start of the many advantages of nearshoring in Peru. Its physical and cultural similarities to the United States also makes it attractive.
Peru has an affinity for Western Culture and is just a six-hour flight from the United States. Peru is located in the U.S. Central Time Zone, making real-time communications simple. This also greatly reduces shipping expenses. With a one-week delivery time, retailers can respond quickly to customer demand. This shorter lead time allows more flexible scheduling and production, the ability for more customization of orders and the ability to carry less inventory.
The Conclusion
With lower freight costs, improved speed-to-market, lower inventory cost, time zone and proximity advantages, along with a skilled workforce, nearshoring in Peru is not only a viable choice but a valuable one. We invite you to contact Solara Hosiery with any questions.