Managing supply chain logistics is a real issue for companies as the world continues to figure things out amidst the COVID-19 pandemic. According to a survey earlier this summer by Thomasnet.com, two-thirds of manufacturers report considering making a change to their production and sourcing to bring things back on US soil. This is due in large part to the shut downs that were mandated and adversely affected the ability of foreign suppliers to deliver goods and services.
This coincides with conversations our Customer Care and Sales teams are having every day. I had conversation with Wendy Clemmerson, Customer Care Manager at McLoone, to review what factors come into play when a company is looking to reshore their production.
3 Factors to Consider for Reshoring
There are important conversations which need to take place in order for reshoring or sourcing with a new supplier. Clemmerson lists the following as must-have information as companies consider making a change.
1 - What type of product is needed? Sourcing a supplier for nameplates and labels means establishing a relationship and communication so that clear expectations of what type of product is understood. Clemmerson says, "Ideally a sample of the existing nameplate along with a detailed print is provided so that we can make a smooth transition into production". A print should provide the type of material, color callouts, artwork, and adhesive requirements. Providing a physical sample allows for opportunity to confirm processing as well as identify equitable alternatives should the exact material not be available. Subtle differences in material thickness, adhesive type, color, etc are areas that need to be understood.
2 - When is product needed? Understanding the customer's production needs and timing requirements is key in successful takeover as a supplier. Regarding timing and production of parts, Clemmerson states, "Changing suppliers takes time for everything to get set up, so reasonable expectations need to be set to allow time to quote, build tools, and then build production runs. Getting transportation sorted out for correct delivery is part of the conversation, too. We do our best to meet deadlines and provide as seamless as possible transition."
3 - How much will it cost? More than likely there will be a difference in piece price for a nameplate or label made in the US compared to the same made overseas. Companies who have moved production back to us have relayed that there is cost benefits to having a US-based supplier including improvements in communication due to language or time zone differences, shorter lead times, shipping and freight cost reduction, increase in attention to quality, familiarity with cultural and regular work schedules.
Clemmerson states, "Pricing can be a challenge, but the advantages of working with a reliable, stable supplier made up of real people who understand often help offset any increases."
How Can We Help?
Clemmerson states "companies are looking for a US-based supplier who can respond in a timely manner so that their production lines stay up and running. As an essential business, McLoone has been and continues to be a trusted supplier." Contact us and let's take a look at how we can alleviate your supply chain stress.