Reshoring Is Supply Chain Flexibility

"The opportunity to sell to Walmart is like winning the lottery for many small and mid-sized manufacturers. Walmart U.S. CEO John Furner noted during a CNBC forum last week that "investing in U.S. manufacturing and U.S. operations, sure, it's great for business, but it's also great for employment. It's great for jobs. It's great for the country, and it helps us with our supply chain being flexible and dynamic.""

"It's impossible to discuss American manufacturing without acknowledging tariffs. Walmart executives have repeatedly said that tariffs increase costs for both retailers and consumers, even as the company works to offset tariffs through scale and sourcing diversification. Ecommerce consultant Jon Elder, who advises brands selling on Amazon and Walmart, describes the effect as "mixed." "Tariffs have caused multiple things to happen in the ecommerce space. I have seen a high number o"

"Furner cited new projects such as a beef-processing facility in Olathe, Kansas, expected to create about 600 jobs, and a partnership with USAntibiotics to restore local drug production. Walmart's approach couples economic nationalism with supply-chain flexibility - reshoring when it strengthens resilience, yet continuing to source globally for products better produced elsewhere."

Returning select manufacturing to the domestic country can benefit businesses and the broader domestic economy. The approach is pragmatic rather than nationalist or nostalgic. Many merchants are finding advantages in producing goods closer to home after decades of offshoring to the lowest overseas bids. Major retailers are supporting domestic sourcing through programs and commitments, creating opportunities for small and mid-sized manufacturers. Investment in local operations can improve supply-chain flexibility and generate employment via new facilities and partnerships. Tariffs complicate the cost equation by raising prices, while firms use scale and sourcing diversification to mitigate those impacts.

Read at Practical Ecommerce