The coronavirus pandemic has wreaked havoc on the global supply chain, leaving businesses scrambling to keep operations running without the same resources they’re accustomed to. Ultimately, this global pandemic has injected a lot of uncertainty into every business, making it difficult to plan for projects, delaying shipments, and impacting decision making. Besides the uncertainty, COVID-19 has backed up ports and customs while causing an overall increase in shipping costs. And, even though it’s been several months since factories in China reopened, many suppliers are still behind on orders. Instead of relying on global suppliers, many businesses are reclaiming control of their supply chain by reshoring outsourced goods and/or services.
Reshoring as a Solution
Companies can choose to see the global supply chain crisis as a temporary problem they are fine with navigating, keeping many of the same processes in place; or they can decide to reshore their supply chain in order to mitigate the risk of future disruptions. In bringing operations back to domestic suppliers, companies can hope to see improvements in lead time and delivery consistency, communication, and expect equal or better quality.
Relying on ocean or air transport to get raw materials, parts, and/or subassemblies to your facility leaves a lot of uncertainty in the process. Ports and transfer stations experience regular delays, customs clearance can take weeks, and overall the cost of shipping internationally can bog down your bottom line. Domestic shipping is much more reliable with fewer variables, increasing the likelihood that your supplies will be delivered faster and on time more consistently.
Communicating with a domestic supplier is much easier and more efficient than communicating with a supplier halfway around the world. Depending on where your international supplier is located, you may only have one chance per day to communicate your supply needs, which can be ineffective and frustrating. Reshoring your supply chain can increase communication efficiencies, in turn improving your overall relationships with suppliers.
The quality of raw materials, parts, and/or subassemblies can be comparable whether sourced globally or domestically. This is where your supply chain team should do some research and source samples from a variety of suppliers to ensure your organization gets the supplies it needs to build products that fit or exceed your expectations.
Reduce Uncertainty in Your Supply Chain
Reshoring outsourced goods and/or services can help reduce uncertainty in your supply chain. Perhaps the biggest lesson that should be taken from the coronavirus pandemic is that the global supply chain can be disrupted fairly easily, and it’s not so easy for organizations to navigate such disruptions. The global supply chain may never go back to the way it was, and businesses that want to thrive need to adjust supply chain processes to reduce uncertainty. Supply chain stability is one of the most important factors involved in running a successful company. Nothing else matters if you can’t get product out the door because you can’t get the parts you need.
If you’re ready to reshore your supply chain, look for products that are made in the USA and contract manufacturers like MCL Industries that are based in the USA. This Prospective Supplier Evaluation Checklist can help your supply chain team determine which suppliers would be the best fit for your organization’s needs. Click the button below to access your copy today.