Given the current state of supply chains, more and more Canadian manufacturing companies are questioning whether it still makes sense to keep their sourcing overseas. Before turning to international markets, many would benefit from checking whether the answer is closer than they think.

What is the real cost of my current sourcing?

Beyond the unit price, transportation, lead times, customs and the risk of disruption all need to be factored in. A local supplier may cost more upfront, but often costs less once these factors are added up.

What lead times can I actually afford?

International supply chains expose companies to unpredictable delays. A supplier based in Canada often allows for a responsiveness that distance makes impossible elsewhere.

Do I actually know the companies in my own ecosystem?

Many look far for solutions without realizing that a supplier capable of meeting their needs may be just a few hours away.

What is my tolerance for geopolitical risk?

Tariffs, trade tensions and currency fluctuations affect local and international supply chains differently. Moving closer to your sources of supply also means reducing exposure to these uncertainties.

Am I making enough of proximity as a selling point?

More and more customers value products made or assembled close to home. Sourcing locally can become a selling point in its own right, not just a logistical constraint.

Asking these questions does not always lead to the same answer, but it allows for an informed decision rather than a reflexive one. Often, the first step is simply getting to know the companies that are already part of your ecosystem.

Photo : Pexels / Tiger Lily

Source: BDO Canada, Reshoring to mitigate risk

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