Why CFOs are leading the reshoring shift
Supply chain volatility has become the norm. From port congestion to tariff swings, the cost of global operations keeps rising. For CFOs, this creates a clear opportunity: bring operations back home to improve control, reduce risk, and protect margins.
Reshoring isn't just about location. It's a strategic pivot. Finance leaders must lead with clarity, data, and urgency.
Hidden costs are eating your margins
Offshoring may look cheaper, but it hides real margin leaks.
The fix: Build a total cost of ownership (TCO) model that includes tariffs, freight delays, quality issues, and inventory overhead. Quantify how reshoring manufacturing improves speed, quality, and control.
Related reading: Why manufacturers are losing millions and don’t even know it
Not all products justify reshoring
Reshoring everything at once creates unnecessary risk.
The fix: Start with high-margin SKUs. Focus on products where delays or quality issues hit hardest. Prioritize value, not volume. This cost-effective reshoring strategy maximizes ROI.
Incentives are being left on the table
Many CFOs overlook powerful tax breaks that offset reshoring costs.
The fix: Leverage Section 179, CHIPS Act funding, and local job credits. Engage tax advisors early to bake savings into your reshoring finance strategy.
Reshoring strains liquidity
Shifting production requires upfront capital. Without it, CFOs face trade-offs between growth and stability.
The fix: Accelerate cash by eliminating AP and AR inefficiencies. Automate payment matching. Catch overpayments. Cut DSO.
How OpenEnvoy helps: Real-time AP automation gives you the working capital optimization needed to fund reshoring without external debt.
Learn more: 7 opportunities to optimize IT resources with finance
Manual finance ops delay decisions
Slow invoice processing, ERP bottlenecks, and audit backlogs waste time and increase risk.
The fix: Use AI in finance operations to eliminate exceptions, automate coding, and reduce IT dependencies. Focus your team on strategy, not spreadsheets.
How OpenEnvoy helps: Autonomous Finance™ eliminates low-value tasks and gives CFOs real-time control over finance workflows.
Supplier decisions aren’t optimized for profit
Old supply networks weren’t built for domestic agility or resilience.
The fix: Build new partnerships with performance-based incentives and shared savings models. Use supplier scorecards tied to financial outcomes.
How OpenEnvoy helps: Align payment terms, liquidity goals, and supplier performance with precision.
Your ROI models lack agility
Static budgets don’t account for shifting labor, inflation, or onboarding delays.
The fix: Use rolling forecasts. Model reshoring under multiple scenarios. Update monthly to align finance, ops, and procurement.
How OpenEnvoy helps: Real-time cash flow visibility and forecasting accuracy give you confidence to act fast.
Reshoring isn’t just an ops decision. It’s a finance move.
Manual AP and AR processes hold back transformation. Cash protection, forecasting accuracy, and capital efficiency define reshoring success.
Why OpenEnvoy: We give CFOs the visibility, control, and automation needed to lead confidently. Scale without headcount. Fund transformation from within.
Explore more: The Gartner CFO & Finance Executive Conference
FAQs
Q: Isn’t U.S. labor too expensive?
A: Labor is just one piece. Freight, quality, and inventory costs often make reshoring more profitable overall.
Q: What helps prove ROI to the board?
A: Model total cost, include tax credits, and show how cash flow improves with automation.
Q: How fast is ROI?
A: Most reshoring efforts pay back in 12–24 months with the right automation and financial controls in place.
