Which of the following is not a benefit of near-shoring suppliers?

Question

BlackTom AI · Accepted Answer

When evaluating the benefits of near-shoring suppliers, it helps to align each option with typical supply chain improvements seen when suppliers are closer geographically.
Option 1: 'Faster order cycle time' — this is generally a benefit of near-shoring, since shorter distances and closer time zones can reduce order processing and transit times, leading to quicker cycles.
Option 2: 'Less inventory in pipeline' — closer suppliers and shorter lead times often allow for more reliable replenishment and smaller safety stocks, which reduces the overall inventory in the pipeline.
Option 3: 'Lower transport costs' — while not universal, reducing long-haul ocean or air freight in favor of shorter, regional transport commonly lowers transportation expenses per unit and total cost of logistics.
Option 4: 'Rapid replenishment' — proximity tends to enable more responsive replenishment, as information and goods move faster, supporting quicker restocking cycles.
Option 5: 'Time to implement' — this phrase describes the duration or effort required to set up near-shoring, including supplier onboarding, contracts, and potential factory relocations. It is not a direct benefit; rather, it represents a transition cost or implementation lead time associated with adopting near-shoring.
In summary, each of the first four options aligns with practical advantages of near-shoring, whereas 'Time to implement' reflects a deployment-related burden rather than a direct operational benefit.

SCMN-2150-001 (Spring 2025) Exam 3 Prep and Bonus Quiz

Which of the following is not a benefit of near-shoring suppliers?

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