Knowledge

Bosnia as a nearshoring location for wood products

Nearshoring is usually justified on price. That is the weakest argument, because it can change at any time. The arguments that hold are distance, batch size and reaction time.

Reading time approx. 6 minutes Drvo Dizajn d.o.o., Usora
Loading solid wood products onto a truck in Usora

The distance, concretely

Zagreb 255 km, Ljubljana 410 km, Graz 450 km, Vienna 610 km, Munich 790 km, Stuttgart 1,010 km, Zurich 1,050 km. For many European buyers that puts Usora closer than a supplier in southern Italy or Portugal.

Depending on the destination, pure transport times can in some cases start at around 2 days. Total lead time also depends on loading, customs clearance and carrier capacity — which is why we set binding dates per project and not as a blanket promise on the website.

Batch size is the real argument

With a supplier in Asia it is not your demand that decides the order quantity, it is the container. That ties up capital, it creates storage cost, and every change to the product hits a quantity that is already in transit.

At a minimum of 5 to 10 pieces and two days of transport, the calculation looks different. You order what you sell, and you can change a product without writing off half a container.

Customs, said openly

Bosnia and Herzegovina is not an EU member. A customs procedure therefore applies that a supplier in Poland or Portugal does not have. That is the honest disadvantage of this location.

In practice our fixed transport partners handle the procedure; they run this route routinely. Under DDP we take the process on by agreement. The chosen Incoterms clause and the cost split are recorded in the quotation so there is no later discussion about duty and freight.

Customs is our minus and I do not hide it. But a customer who orders five pieces and has them on the table two weeks later does not even feel that customs.

Haris Ćostović · Deputy Managing Director

What a location alone does not solve

Nearshoring does not replace supplier assessment. Distance says nothing about drying, dimensional accuracy or on-time delivery. It only says that you can check those things without flying.

That is exactly why we recommend a factory visit before the series starts. From Graz or Munich, Usora is reachable in a day — and what takes an hour to settle on site often does not settle by e-mail in weeks.

We save the most time when the customer comes here. What drags on for three weeks by e-mail is settled in the hall in an hour.

Haris Ćostović · Deputy Managing Director
The figures in this article
  • Zagreb 255 km, Vienna 610 km, Munich 790 km, Zurich 1,050 km
  • Pure transport time from approx. 2 days depending on destination
  • Minimum quantities from 5 to 10 pieces depending on product
  • Monthly deliveries into Western Europe
  • Export share 65 %, more than ten export markets

We do not claim that manufacturing in Bosnia is fundamentally cheaper or faster than in Asia. For small and medium series with changes along the way, the short distance pays off; for mass-market goods with an unchanged specification, often it does not.

Read on

Assessing nearshoring for your wood products?

Tell us what you have made today, in what quantity and where it is not working. We will reply within seven days at most with a concrete assessment.

Your direct contact: Haris Ćostović, deputy managing director. Communication in English and German.

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