The Proximity Premium

Strategically reshaping supply chains in the Americas

KPMG is pleased to share a new and exciting research piece examining the changing landscape of supply chains serving the US market.

Supply chain disruptions are a major concern for companies today. Our report, "The Proximity Premium," analyzes the implications of strategic shoring, a trend where companies are relocating their supply chains closer to the Americas to enhance supply chain resilience and agility.

The Proximity Premium highlights the key advantages of strategic shoring, revealing how it can lead to increased speed to market, diversified supply nodes, enhanced access to talent, and minimized risks.

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Steps you can take to establish a standout ESG M&A due diligence program:

Identify your motivation for the program

Develop a clear ESG strategy

Secure appropriate resources and assign responsibilities

Collaborate with external experts

Link ESG M&A due diligence to ESG strategy

Develop your ESG M&A due diligence framework

Perform ESG M&A due diligence procedures

Link ESG M&A due diligence findings to post-closing actions

Monitor and report findings to stakeholders

Continuously improve the due diligence process

Executives are prioritizing immediate strategic shoring actions

76%

76% are prioritizing immediate strategic shoring actions

16%

Americas’ share of supply chains to the US is expected to rise by 16%

The Proximity Premium

Watch this video highlighting the benefits from strategically reshaping supply chains in America

Podcast: Chris Callieri, Chief Supply Chain Officer of Victoria’s Secret

14:31

The new value equation of strategic shoring.

Podcast: Martin Van Trieste of Emeritius Civica Rx

14:39

Have organizations learned their lesson when it comes to supply chain agility?

Podcast: Sam Rosen, President of Ollin Plastics

13:48

What does supply chain resilience mean in 2024?

Business executives are re-evaluating their supply chain assumptions with a primary focus on regional and domestic sourcing and distribution to mitigate geopolitical and economic uncertainty. Companies are seeing strategic shoring as a way to improve supply resilience and operational agility, offering them the benefits of proximity, cost efficiency and access to resources.

Jean-Pierre Trouillot

Partner, Deal Advisory, KPMG U.S, and Latin America Regional Advisory Leader, KPMG Americas*

A closer look to the variables of a successful strategic shoring decision:

Tactics for achieving a tax-first mindset. Read more.

Building agile supply chains through data-led decisions. Read more.

Partnerships that bring value chain stability. Download now.

Resilience rising: Toward a new agility premium. Read more.

Safeguarding your talent supply. Download now.

64%

64% of companies consider indirect taxes, government grants/incentives, and transfer pricing rules at the outset of strategic shoring decisions

53%

53% of companies identify regulators and tax officials as significant influences on nearshoring decisions, only second to shareholders

Tax capabilities and data analytics represent opportunities to move the strategic shoring needle

Companies don’t always consider tax as part of their overall strategic supply chain cost assessment. This could be a big miss. A tax-first mindset, combined with a data-driven, connected thinking approach, can aid business executives to better understand how different factors interact and impact supply chain decisions.

Doug Zuvich

Tax Partner, KPMG US, and Latin America Regional Managing Partner, Tax & Legal*, KPMG Americas

A podcast series discussing the changing landscape of supply chains serving the US market.

Listen now

Service

The new imperative: Supply chain transformation

At a time of extreme disruption, help future-proof your supply chain with KPMG

How KPMG Supply Chain Services can help

Strategic sourcing can transform your supply chain. But it’s a big decision to switch suppliers and potentially set up hubs in different countries. KPMG Supply Chain Services can help. Our reshoring experts have expertise that’s backed by technology. We also offer an AI portfolio, a set of algorithms that support supply chain operations. Let KPMG guide, accelerate, and de-risk your supply chain.