High-tech companies are shifting strategies with a greater focus on nearshoring in their supply chains.
According to UPS' annual Change in the Chain survey, the interest in nearshoring, by which various IT duties are sent to bordering countries, has tripled since 2010. Worldwide, UPS claims 27 per cent of high-tech logistics figureheads are using the option to improve customer service.
Of its respondents, 77 per cent said nearshoring enabled them to bring production close to demand, thus removing lengthy distribution process, which may have an effect on those companies used to deliver and supply such goods. The report also found 55 per cent wanted to establish greater control with their supply chain.
High-tech marketing director at UPS Ken Rankin said: "It's critical for high-tech companies to align their supply chain strategies to broader business goals and ... [improve] operational efficiencies and [drive] growth in new markets."
The global survey found 48 per cent of executives from high-tech firms cited the importance in delivering global launches, while 26 per cent said security was still needed throughout supply chains during this process.