Supply ChainSample research
The real cost of nearshoring: total landed cost versus resilience premium
Firms consistently underestimate the hidden costs — and the hidden benefits.
Harvard Business Review (sample) · Practitioner research · 14 Oct · 11 min full read
Why PARIS surfaced thisConnected to: Operating Plan FY27
PARIS summary · 51 words
Nearshoring decisions often rest on unit-cost comparisons that ignore inventory carrying costs, expediting and disruption exposure. Using sample cases from apparel and industrial components, the authors show resilience premiums of 4–7% are typically recovered within two disruption cycles. They propose a simple total-landed-cost framework executives can apply in a single workshop.
Why You Should Read This
Demonstration connections Your priorities
Relevant to the sourcing-diversification objective in your operating plan; the framework is directly reusable.
Context documents
Questions addressed
- Is the sourcing-diversification business case using total landed cost?
Practical applications
- Run the total-landed-cost workshop for the top 20 SKUs.
Your assumptions
SupportsSupports the diversification objective with a reusable cost framework.
Connections are illustrative sample data. Uploaded documents have not been analysed.
Key findings
- 01Unit cost comparisons miss 30–40% of total landed cost.
- 02Resilience premiums of 4–7% recovered within two disruption cycles.
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