Problem:
Regionalization or nearshoring can affect a company's supply chain in the following ways: 1. Reduced transportation costs: By establishing factories or production facilities closer to the target markets, regionalization or nearshoring can significantly reduce transportation costs. This is because shorter distances lead to lower transportation expenses, including fuel costs, shipping fees, and customs duties. 2. Faster response times: Regionalization or nearshoring allows for quicker response times in supply chain operations. With production facilities located closer to customers, companies can react faster to changing market demands, reduce lead times, and ensure timely delivery of products. 3. Improved supply chain resilience: By diversifying production across different regions, companies can mitigate supply chain risks. Regionalization or nearshoring reduces reliance on a single source or country, making the supply chain more resilient to disruptions such as natural disasters, political instability, or trade disputes. 4. Enhanced quality control: Proximity to production facilities enables companies to have better control and oversight over the manufacturing process. It becomes easier to monitor and maintain quality standards, conduct inspections, and address any production issues promptly. 5. Closer collaboration and communication: Regionalization or nearshoring fosters closer collaboration and communication between the company and its suppliers. Proximity allows for more frequent