Think about the last project you spearheaded – did you face any supply chain issues obtaining crucial parts?
Were there any communication barriers such as time zone differences or speaking different languages?
Did you bite your nails over shipping delays?
These are all facets of supply planning. An essential part of the manufacturing process, effective supply planning involves ensuring that all materials and components you need are available when you need them. Without it, you run the risk of running out of stock at critical moments in production and facing costly delays.
With that in mind, has your company looked at reshoring its mechanical motion control supply manufacturing yet? There are multiple reasons, especially regarding supply planning, to do so sooner rather than later.
Supply Planning & the Push to Reshore
If your company is looking for mechanical motion control solutions, it’s best to look to a U.S.-based manufacturer.
Why is that?
The third-party supplier profile is changing.
In the past decade, more than 1,000,000 jobs have been reshored back to the U.S.
A movement is afoot, brought on not only by a pandemic and its subsequent supply chain disruptions, but also a legislative push to bring back localization – manufacturing a product in the same country as its market.
From the Reshoring Initiative 2022 Q3 Data Report:
“For the third year in a row, reshoring is outpacing foreign direct investment (FDI)… U.S. headquartered companies are understanding the benefits to localized production that many foreign companies have understood for decades.
Localization is driving large cases of FDI in the U.S., primarily for two additional reasons: first, the U.S. remains the biggest market in the world with a healthy economy and stable business climate relative to other countries, and second, the incentives associated with the infrastructure and IRA bills will apply only to products that fit the bills’ Made in N. America provisions.”
4 Benefits of Reshoring Your Supply Manufacturers
There are many routes to effective supply planning for your manufacturing needs.
We'll look at some of the ways reshoring supplied parts – such as those for motion control – can mitigate supply chain issues, including:
Because of the COVID-19 pandemic, there’s a renewed emphasis on producing goods locally for the market they’re intended to serve.
Weaknesses in a global supply chain were fully exposed during the pandemic. For instance,
foreign factories suffered losses and slowed production, or shut down entirely. At the same time, shipping companies also struggled to maintain their routes with fewer workers, only to reach American shores and have nowhere to unload due to backlog at the docks.
Companies now calculate supply-chain risk in their overall cost analyses – and it pays to source locally for:
- Mitigating supply chain disruption
- Benefiting domestic economies
- “Made in the U.S.A.” branding
- Freight costs
Companies reshoring elements of their supply chains have also found gains in better communication and faster lead times working with U.S. manufacturers.
2. Single Sourcing
Single sourcing is the deliberate choice of a company to contract a single supplier to provide a particular part or component. This is different from sole sourcing, where a provider is selected because they’re the only supplier available.
The single-sourcing approach helps companies:
- Increase efficiency
- Cut costs
- Improve quality
Because it’s a competitive process, partnering with the right single-source supplier streamlines purchasing and frees up administrative time spent procuring parts.
Working with a single-source, American-based hinge manufacturer, you only need to make one phone call to one source. And building closer relationships with your supplier leads to further savings through improved communication and collaboration on future projects.
How do you find the right single-source supplier?
Don’t spring for the lowest bidder – a quality-based bidding process takes into account the extent and quality of a bidder’s product, as well as its reputation for service, collaboration, and delivery. Overseas manufacturing prices are generally cheaper. However, the finished product(s) don’t always live up to expectations.
When integrated into a localized, reshoring approach, single sourcing with the right hinge manufacturer leads to:
- better communication,
- higher quality parts,
- speedier development and delivery, and
- more convenient interactions.
3. Vertical Integration
Taking control of two or more stages of the production and/or distribution process for a product, i.e. vertical integration, allows manufacturers to control costs, ensure better quality control, and gain greater efficiencies in the supply chain.
When you work with a vertically integrated hinge supplier, they control every aspect of their process, from the initial design phase through production. They handle:
- Raw materials processing
With everything under one roof, they have better control over product quality and lead times, as well, boosting both your production schedule and finished products.
4. Inventory Management
Since inventory counts on a company’s balance sheet as assets, it’s essential to manage it properly. Company leaders must weigh the risks of not having enough inventory (think: supply chain disruptions) against the onus of eating up company cash to store more product than necessary.
In turning away from traditional production (the higher the output, the higher the profit margin) they’ve come up with a variety of “lean” inventory management methods, such as Just-in-Time (JIT).
With the JIT method, as the name suggests, a company holds only enough inventory to meet its current demands. Operating under JIT reduces waste and saves a lot of money – but, it’s also gambling that nothing will disrupt the supply chain. In JIT, supply chain disruptions, which are more common now in partnerships with overseas manufacturers, cause bottlenecks, which cost a lot of money.
Many companies have invested countless hours and dollars implementing lean manufacturing, including JIT inventory management styles. Should they abandon JIT for more traditional methods to mitigate supply chain issues?
Combining lean inventory management with localization enables a company to reap the benefits of storing less inventory while shortening the physical distance between it and its suppliers. Reducing transportation time for goods, as well as reducing communication problems, also lends well to the JIT method.
Supply Planning & Bringing it All Together
Reshoring is about more than just localization – finding the right U.S. manufacturer to partner with means also looking for a company capable of providing single-source services and vertical integration, and that has its own inventory management under control.
In forging partnerships based more on risk-competitiveness, reducing lead times, preventing bottlenecks, and, overall, providing better customer experiences, companies are benefiting more than just their bottom lines by reshoring.
Partner With the Right Hinge Manufacturer
As a vertically-integrated, single-source partner, the Weber Knapp team is ready to become an extension of your team, sharing technology and contributing to the design of your product through a continuous collaborative effort. Let’s work together.