Nearshoring for Healthcare

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Pharmaceutical, medical device, and laboratory diagnostic companies can gain so much from reimagining their supply chains. As a global 3PL provider, we have the knowledge and capabilities to help you accomplish big shifts for your operating models.

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Why Are Healthcare Companies Switching to Nearshoring?

Healthcare supply chains operate in one of the most demanding industries, where timely delivery and full visibility are non-negotiable. Our nearshoring solutions are designed to meet these critical needs, delivering speed, transparency, and efficiency—because healthcare demands nothing less. Companies around the world are reorganizing supply chains to bring production closer to demand.

Top reasons for changing sourcing <sup>[1]</sup>

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  • Shorten the supply chain to increase flexibility: 65%
  • Limit reliance on single sources of materials: 57%
  • Limit risk across operations: 56%
  • Shorten the supply chain to reduce transit time: 48%
  • Increase control over operations: 45%

Why does Nearshoring matter?

Driven by Nearshoring, Mexico’s exports are at an all-time high

2023

"Mentions of re-shoring on earnings calls in 2023 have more than doubled from a year ago" [2]

54%

of US executives think manufacturing closer to home is key to survival [3]

$475B

Mexico is the US’s top trading partner based on import value [4]

Key Benefits of Our Nearshoring Solutions

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Faster Time in Transit
Nearshoring helps you place your operations closer to key markets. By reducing the distance between inventory and end-users, we speed up delivery times, enabling your healthcare company to serve patients and partners efficiently.

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Increased Visibility and Transparency
With UPS® visibility tools integrated into your supply chain, you’ll have full transparency over the movement of goods. This means efficient staffing, fewer delays, and clear communication with your customers.

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Streamlined Customs and Documentation
Our cross-border solutions consolidate shipments and enable goods to clear customs as a single entry—saving time and avoiding the hassle of relabeling.

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What does a nearshoring model look like?

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Near-Distribution Model

UPS Healthcare has the portfolio required to unlock nearshoring advantages with an end-to-end solution for those looking at distribution models.

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Near-Manufacturing Model

UPS Healthcare has the portfolio required to unlock nearshoring advantages in your upstream supply chain in manufacturing focused models

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Understanding Mexico’s IMMEX Program

The IMMEX program, pronounced “e-Mex,” is a trade promotion initiative designed to help businesses save on shipping costs from Mexico to the United States. It reduces duties and taxes for companies that manufacture or sell products from Mexico, often referred to as maquiladoras.

Key IMMEX Benefits

How Can UPS Healthcare Customers Use IMMEX?

How IMMEX Works

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  • Inputs (e.g., cloth) are imported into Mexico at reduced duty/tax rates.
  • IMMEX shelters handle reporting, compliance, and Mexican taxes.
  • Medical devices are produced and stored in Mexico. Medical devices are exported to the U.S. market.

1 Maersk, Whitepaper on Supply Chain Resilience, retrieved from Maersk
2 CNBC, Stock Futures and Market Trends, retrieved from CNBC
3 Accenture, High-Tech Supply Network Redesign, retrieved from Accenture
4 Statista, Largest Trading Partners for US Imports in 2024, retrieved from Statista

Frequently Asked Questions

How does nearshoring benefit healthcare companies?
Nearshoring with UPS Healthcare places your supply chain closer to key markets, reducing transit times and improving inventory management. This is crucial for healthcare companies that require fast delivery and reliable service.
Can nearshoring support sustainability goals?
Yes! Nearshoring with UPS Healthcare helps reduce your carbon footprint by shortening transportation distances. Additionally, our services align with sustainability initiatives and comply with strict labor and governance standards.
What are the costs involved in nearshoring?
Costs depend on your specific needs, but nearshoring through UPS Healthcare typically provides long-term savings by reducing transportation expenses and minimizing supply chain risks. Reach out to our experts for a personalized cost analysis.
Do you handle the legal and regulatory requirements?
Absolutely. UPS Healthcare ensures full compliance with customs regulations, trade agreements, and healthcare industry standards, allowing you to focus on serving your customers.
Can nearshoring support cold chain warehousing, packaging, and freight?
Yes. UPS Healthcare specializes in cold chain solutions, ensuring temperature-sensitive products are stored, packaged, and transported under strict conditions. Our nearshoring services help preserve product integrity, reduce transit times, and minimize disruptions.

Additional Resources

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