There are many reasons manufacturers are increasingly moving toward domestic sourcing for manufacturing materials. In the past, low offshore production costs made global sourcing attractive for many companies. However, rising costs and the risk of supply chain disruptions have made many U.S. companies reconsider the benefits of domestic sourcing.
Domestic sourcing for manufacturing materials provides benefits to quality, cost, delivery, and more. Here we’ll look at seven of the most significant benefits.
The dynamic nature of manufacturing means every day presents new challenges and opportunities. If you receive a customer inquiry today requesting a larger volume than average, can your supply chain scale up to meet the demand?
Domestic sourcing for manufacturing materials provides the flexibility to respond to changes and new demands. Domestic suppliers will react faster than overseas suppliers and deliver materials more quickly, allowing for last-minute changes and the ability to buy materials when needed.
Companies located a great distance from suppliers often have less control. Domestic sourcing for manufacturing materials provides the most oversight, ensuring your suppliers stay on schedule and meet all quality requirements.
When importing materials from overseas suppliers, businesses run a higher risk of quality and delivery issues. These added risks result in less efficient production capacity planning and inventory management. Because offshore supply chains respond slowly to changes, they have less agility to react to changes in demand. Therefore, businesses using offshore suppliers must plan production farther in advance, increasing the risk of overproduction and excess inventory.
Buying from overseas introduces logistical costs that domestic suppliers don’t incur. A few of the added costs of doing business overseas include international shipping rates, tariffs, and customs. Companies can reduce these costs by sourcing closer to home, so materials don’t travel as far. Not only does domestic shipping cost less than international shipping, but it lowers inventory costs because companies buy materials in smaller quantities and only when needed.
Compared to international sourcing, domestic sourcing for manufacturing materials lessens the environmental impact significantly. Less shipping and storage means fewer emissions and energy usage. Domestic freight usually requires less packaging than international shipping—reducing the carbon footprint and lowering costs.
Staying competitive requires getting products to market as quickly as possible. Domestic supply chains come equipped with multiple freight options versus ocean freighters that might take weeks to move materials worldwide. The long and unpredictable lead times of international supply chains have led many companies to consider reshoring manufacturing and material sourcing.
Shipping over long distances doesn’t just raise costs; it creates longer lead times. Domestic shipping proves faster than shipping from international suppliers who rely on ocean carriers with inflexible schedules. Again, the more distant the supplier, the more transfers and opportunities for delays. When materials move between countries, border inspections can additionally slow delivery, and the risk of supply chain disruptions rises.
When a supply chain problem arises, being in the same time zone as your supplier allows for a quicker resolution. For example, if something goes wrong on a Friday morning, it could already be the weekend for an overseas supplier, and you may not hear from them until the following week. Due to time differences and incompatible holiday schedules, communication with overseas suppliers can take days of back-and-forth emails. A domestic supplier will resolve problems faster due to aligned business hours.
When sourcing domestic materials, customers place more trust in your product. Consumers know U.S. manufacturers have access to the highest quality materials and follow strict industry standards. Domestic sourcing improves your business’s image while boosting the economy, and when local economies prosper, consumers spend more—helping your business.
When you source materials from a trusted domestic supplier, you get a quality product. Domestic sourcing reduces supply chain risks and increases flexibility in production planning and customer responsiveness. An ISO 9001-certified U.S. machine shop strengthens supply chains by offering speed, flexibility, and confidence in your product’s quality.
At Plethora, we are proud of our Manufacturing as a Service (MaaS) model of business. We feature professional machinists and engineers working on the best equipment in the industry. We are constantly seeking ways to improve our processes to provide our customers the highest quality service possible. Our online DFM and quoting systems are ready to receive your data so we can begin working with you on your next project. To get started, upload your design files to Quote My Part or call us at 415-726-2256.
The Plethora Team
The Plethora team is your go-to CNC manufacturer for hardware done right the first time. We have the tools and experience needed to create high quality custom parts quickly and with precision, whether you need a prototype or production run.