Some companies are building friendshoring supply chains because they want to keep their work safe and close by, just like how you might share toys with your best friend instead of a stranger.
Imagine you have a lemonade stand, and you get all your lemons from the store down the street. That’s easy, but what if that store suddenly says, “We’re not going to give you any more lemons unless you pay us extra”? That would be tough for your lemonade business!
Friendshoring is like having a few stores nearby that you know you can trust, maybe even ones from the same country or city. If one of them has trouble getting lemons, the others can help out. It’s like making sure your best friends are also on your team so you don’t have to worry about being left out in the cold.
This way, companies feel more secure and can keep things running smoothly even if something goes wrong with their usual suppliers, just like how having a few good friends makes playtime better!
Examples
- Instead of getting parts from everywhere, companies now get them from countries they trust.
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See also
- Why are global food prices still rising despite supply chain improvements?
- How do global supply chain disruptions impact everyday consumer prices?
- How Do Economies Grow, and Why Do Some Fail?
- How are global supply chains being reshaped in the modern economy?
- How do global supply chains impact the cost of everyday goods?