Blending Offshoring And Nearshoring: A New Paradigm

By Yash Siddhartha, Flexan — an Ingersoll Rand Business

As the world contends with a growing number of extreme weather events and global shipping routes are increasingly impacted by geopolitical strife, supply chain challenges have surged. Thus, understanding the risks, costs, and benefits of both offshoring and nearshoring is critical, as is identifying capable partners in the regions where you operate.

Tariff risk and geopolitical risk play a large role in how medical device OEMs contemplate their supply chains. Accordingly, efforts to reconfigure supply chains to limit the amount of cross-border or cross-continent movement have been front-of-mind for companies throughout the medical device supply chain.

Medical device OEMs rightfully expect that their CMO/CDMO will manage the supply chain and mitigate associated risk. When vetting partners, it is important to recognize the difference between just being good at manufacturing and being good at both production and supply chain management. One indicates technical skill; the other shows business acumen, depth of resources, and agile thinking.