Supply chains, while once confined to domestic suppliers and U.S. based locations, have stretched around the world as companies seek to source quality goods at the lowest possible cost. Unfortunately, manufacturers have found that with this cost-driven decision comes increased risk in the form of poor quality, trade secret theft, supply chain disruptions, and lengthy delivery times.
Because of these risk factors and the labor rate increases in China, over 20% of manufacturers are already engaged in reshoring and creating localized supply chains.
A list of the 10 most commonly cited reasons for reshoring include:
- Reduce the total cost of ownership
- Reduce lead time to market
- Improve product quality
- Access to skilled workforce
- Wage inflation and currency exchange of host country
- Reduce freight costs
- Reduce inventory
- Improve brand image “made in USA”
- Reduce risks (intellectual property / supply chain interruption)
- Enhance innovation by manufacturing near R&D facilities
As part of the Morning Huddle Series, NWIRC will host Supply Chain Management Best Practices to walk through some of the critical considerations to help you optimize your supply chain. This program is ideal for presidents, owners, supply chain managers, accounting personnel, manufacturing managers, industrial engineers, and product line managers. These no-cost programs will be will be held in Erie, Hermitage, and St. Marys. Please visit: https://nwirc.org/training-and-events/schedule/ for complete details and to register.
Source: Mining, Oil, & Gas Field Machinery Manufacturing, Reshore Readiness Report 2014.