Nearshoring and Multi-Origin Consolidation in Latin America Offer Supply Chain Advantages

Trucking in Latin America
Nearshoring and Multi-Origin Consolidation in Latin America Offer Supply Chain Advantages
August 01, 2023

Organizations continue to navigate a complex global market, in search of strategies to maximize profits, minimize cost, and overall improve business. One strategy that has gained popularity in recent years is tapping into Latin America for nearshoring and multi-origin consolidation. 

What is nearshoring and multi-origin consolidation?

Nearshoring involves sourcing materials, manufacturing, and labor from a third party, located closer to end markets such as North America. According to, having a partner closer to your business will shorten transit times, cheapen import costs, and make conducting business with a supplier easier. Multi-origin consolidation takes it one step further by combining products and solutions from across the region into a single shipment. 

“As an organization, we are constantly changing our processes to fit the market’s needs, including nearshoring and multi-origin consolidation,” says Carlos Castaneda, Managing Director – Latin America, EFL Global. “This also includes adding more capacity and sourcing the best talent to face new challenges as they arise. We stand by our commitment to providing EFL Global’s business partners with the best possible solutions to simplify operations.”

There are various supply chain advantages businesses can unlock by looking to Latin America for nearshoring and multi-origin consolidation.

Reduced lead times.

By sourcing materials, manufacturing, and labor in Latin America, businesses in North America can significantly reduce lead times that would otherwise be caused by sourcing from owned operations or third parties across the world. Products can then be brought to market in a more timely manner, with businesses able to respond to changes in demand or supply chain disruptions with ease. 

“EFL Global’s strategy has always been to be closer to our suppliers and production facilities,” says Castaneda. “This allows us to create a stronger partnership with the idea of easing the productive process and reducing lead times.”

Lower transportation and labor costs.

Shipping products across continents can be an expensive feat, and one of the most costly parts of the supply chain for businesses. Nearshoring and multi-origin consolidation can help businesses save on transportation costs by reducing the distance that products need to travel. It can also provide lower labor costs while not compromising on quality of work. 

“EFL Global has been investing in our fleet and other transportation assets to guarantee an immediate response, proper control of the cargo, and lower costs,” says Castaneda. “We’ve also worked to strengthen our relationships with major carriers that are fundamental in this process.”

Increased supply chain resiliency and preparedness.

In today’s market, supply chain disruptions are no unique problem. Between port congestion, strikes, unprecedented weather conditions, and economic challenges, there is no telling what any given day can bring to your supply chain. By utilizing nearshoring and multi-origin consolidation in Latin America, businesses can build a stronger foundation for their supply chain to thrive with solutions closer to home, creating resiliency and preparedness.

“Today, the supply chain market is anything but regular,” says Castaneda. “Processes have majorly changed over the last few years. Our market knowledge and strategic locations across Latin America offer resilient and flexible solutions with capabilities for a variety of logistics needs. This allows us to handle each project as needs arise.”

Improved quality control.

Nearshoring and multi-origin consolidation in Latin America can also make it easier for businesses to both monitor and control the quality of their products. With manufacturing facilities in closer proximity to North America, businesses can more easily inspect and manage the manufacturing process, thereby improving timelines for release and final products. 

“EFL Global’s close proximity to production facilities has allowed us to maintain full control of raw materials and finished goods,” says Castaneda. “Our systems and tools provide solutions such as real-time inventory management, cargo tracking, and more. This further ensures that lead times are met and identifies gaps in our clients’ supply chains.”

Nearshoring and multi-origin consolidation can offer numerous benefits to businesses looking to optimize their supply chains. By reducing lead times, transportation costs, and supply chain risks, businesses can dramatically improve their bottom line and gain a competitive advantage in the market. 

If you’re considering this strategy for your business, check out EFL Global’s Latin America solutions by visiting to get in touch with the team.

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