OPERATING LOCATION STRATEGY

Offshoring

Also called

Reading time
3 minutes

Offshoring locates an activity or operation in another country. It can involve a company’s own operation or an external provider, so it is a location decision rather than automatically an outsourcing decision.

OFFSHORING IN PRACTICE

  1. Define the activityIdentify the product, process and destination market.
  2. Compare the networkEvaluate cost, capability and risk together.
  3. Manage the transitionValidate supply and operating responsibilities.

Use the agreed units, actual records and approved procedures for your operation.

A WORKED EXAMPLE

Ownership and location are separate choices.

A company opens its own production operation abroad. The activity is offshore but is not necessarily outsourced to a third party. The logistics team still evaluates the resulting supply route and inventory requirements.

WHAT THIS MEANS FOR YOUR QUOTE

Agree the requirement before comparing quotes

Use the actual shipment, stock and service requirements. Record the billing unit, included work and responsibility for exceptions.

A LITTLE MORE CONTEXT

Questions about Offshoring

Is offshoring always outsourcing?

No.

Does a lower wage prove a lower total cost?

No.

Should transition and border effects be included?

Yes.

Source & example notes

Definition and operational example prepared by 3PL Hub. Examples describe hypothetical requirements; verify the actual records and agreed procedures for your operation.

Quantities, costs and scenarios are illustrative, not operating targets, approved handling instructions or guarantees. Source guidance reviewed 23 October 2026.

Last updated: · 3PL Hub

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