Reshoring returns production or another business activity to the buyer’s home country after it was performed abroad. Companies consider it when resilience, lead time, automation or control outweigh the prior offshore cost advantage.
| Area | What to record |
|---|---|
| Decision | Build a transition plan covering supplier exit, tooling, qualification of the new site, safety stock and customer approvals. Savings should not be counted before the new process reaches required yield and capacity. |
| Evidence | Compare full current cost with the future domestic model, including one-time transfer costs, equipment, labor, scrap, logistics and inventory. |
| Watch point | Reshoring can shorten supply chains but it does not automatically reduce total cost. The decision depends on the category and the capability available at home. |
When the term matters
Build a transition plan covering supplier exit, tooling, qualification of the new site, safety stock and customer approvals. Savings should not be counted before the new process reaches required yield and capacity.
Checks before approval
Compare full current cost with the future domestic model, including one-time transfer costs, equipment, labor, scrap, logistics and inventory.
Reshoring can shorten supply chains but it does not automatically reduce total cost. The decision depends on the category and the capability available at home.
