Manufacturing has been a hot topic lately. The economic crisis in our country, in Europe, and in China has focused attention on finding ways to reduce expenses for all industries. In manufacturing, scrutiny of the supply chain and manufacturing locations opens up avenues to cut costs and improve productivity.
The steps to successful U.S. sourcing are discussed in depth and demonstrate ways to bridge the gap between buyers and suppliers. The reshoring initiative of bringing manufacturing back to the U.S. enables companies to be closer to their customers. Sourcing locally offers advantages such as reducing lead times, eliminating high shipping and transportation costs, and reduces disruptions to the supply chain.
Reshoring also allows for flexibility in meeting customer requirements and the ability to adapt to a variety of demands. With the decline of U.S. manufacturing, we lost the established network of industry that was a known quantity. Now, companies that have local manufacturing operations must rebuild that network and the supply chain to increase awareness of their existence and manufacturing capabilities.
Solving design and production issues for small and medium sized companies is where reshoring initiatives will be most beneficial. Moakler offers suggestions on how small and medium sized companies can get the most out of the supply chain. He recommends partnering with an e-sourcing company that will feature and locate U.S. based suppliers so that buyers have choices and necessary information for finding the supplier that is the best match for quality and cost. It is one way to begin to rebuild strong relationships.
Forming strategic partnerships strengthen and revitalize the manufacturing base in this country. Effective communication is the backbone of strong relationships that give way to optimizing efficiency, accuracy, and profitability. These relationships lead to increased innovation and design productivity, better problem solving, and improved processes.
The supplier-buyer relationship benefits greatly from the renewed interest and growth of American manufacturing. Besides strengthening the business models, it helps drive the economy and job growth. Rebuilding and managing new U.S. supply chains will bring the right capabilities, performance, and capacity that is needed for manufacturers and OEMs to continuing the reshoring trend.