Nearshore, Reshore, Dual-Source: 2026 Retail Plan

If 2026 had a supply chain slogan, it would be: “Nice single-source you’ve got there. Hope nothing happens.”

Most suppliers don’t dual-source because it’s fun. They do it because retail punishments for inconsistency are real: out-of-stocks, missed promotions, and sometimes lost shelf space.

And the market is shifting. Gartner reported that 73% of companies have added or removed production locations from their supply chain networks in the past two years (as of their 2024 survey reporting). That’s a strong signal: resilience is overtaking lowest-cost thinking.

First, define the terms (quickly)

• Reshoring: moving production back to the U.S.

• Nearshoring: moving production closer (often Mexico/Canada for U.S. supply)

• Dual-sourcing: having more than one viable production option (could be two countries, or two factories in the same country)

Why suppliers are doing this now

Tariffs and trade uncertainty are part of it. So is lead time volatility. Retailer expectations: when a promotion is set, the product should be available.

A Reshoring Initiative survey report (2025) found that 30% of original equipment manufacturers (OEMs) surveyed reported reshoring over the past 10 years or are actively implementing reshoring strategies. You don’t need to be an OEM to learn from that. The point is: more companies are willing to trade some unit cost for speed and predictability.

One related survey summary notes that a meaningful share of respondents would even pay more for dramatically faster delivery (e.g., 10%–20% more for delivery within one week instead of six, as cited in a discussion of the Reshoring Initiative survey).

A fictional example (clearly fictional)

A fictional personal-care brand sources a single hero SKU from a single overseas factory.

Q2 goes fine.

In Q3, a delay hits just as a retailer promotion begins. The brand misses the window, the promo funds still get spent, and the retailer resets the set with a competitor that can keep shelves full.

Nobody “canceled” the brand. But momentum is gone. And momentum is everything.

The 2026 supplier decision framework (simple and actionable)

1) Classify your SKUs by “retail pain,” Not by revenue alone.

Ask:

• If this SKU goes out of stock for 10 days, what happens?

• Does it support a key retailer program, promotion, or endcap?

• Is it a traffic driver that protects brand space?

High-pain SKUs should not be single-sourced unless you have extraordinary controls.

2) Decide what you’re optimizing for. Pick two:

• cost

• speed

• flexibility

• risk reduction

Trying to maximize all four creates a strategy that never ships.

3) Realistically use dual sourcing. Dual-sourcing doesn’t mean 50/50 volume overnight.

A practical approach:

• Primary source: 70–90% volume

• Secondary source: 10–30% volume, validated, ready to scale

The secondary source isn’t there to be “cheap.” It’s there to be available.

4) Build a buyer-friendly resiliency story. Retailers want confidence.

A clean message sounds like:

• “We’ve built redundancy into production for our top items.”

• “Here’s how we protect in-stocks during promotions.”

• “Here’s how we reduce lead time variability.”

Avoid sounding like you’re warning them of trouble. Position it as a reliability upgrade.

The punchline

In 2026, supply chain resilience isn’t just about operations. It’s revenue protection.

And it’s brand reputation.

When suppliers plan retail expansion, we often encourage them to align their distribution plans with sourcing realities so growth doesn’t outpace the supply chain.