5 Things You Should Know Before Reshoring
If you’ve considered reshoring critical component manufacture in the last 6 months, here’s plastic injection moulding experts BEC Group’s top tips for getting started.
With COVID and Brexit threatening to de-stabilise offshoring, UK purchasing teams are having to seriously re-think their established buying strategies. The realities of offshoring exposed, with short term cost savings offset by supply chain risk and sub-standard quality of plastic injection moulded components. Recent months have demonstrated how fragile the trade-offs are.
Risks mitigated by choosing manufacturing partners closer to home. COVID has already forced many to fly parts back to the UK, guaranteeing supply of critical parts and delivery of key product lines.
If the last 12 months has taught us anything it’s that UK manufacturers like BEC Group have come up trumps offering clients; stability, flexibility, collaborative expertise and cost efficiencies. Home grown collaborations championed by government, the GTMA and Reshoring UK.
Offshoring could be costing you in lost orders, the price of reshoring parts, putting constraints on design modifications, increasing your environmental impact and the loss of UK tax break efficiencies.
By using a UK manufacturer like BEC Group – experienced in reshoring – you regain control, improve flexibility through stock management and reduce risks in your supply chain.
Reshoring. Getting Started.
- Ask yourself why? – What’s your objective? Do you need to reduce cost, lead times or improve quality?
TIP: Clarifying the goal will help you source the right supplier.
- Cost Comparison. Even if individual products cost more in the UK, the cumulative cost of shipping, transport, insurance, lost production days and the overhead of large orders stuck in-transit – at sea for weeks – is eye watering.
TIP: Take another look at your Total Purchase Price (TPP).
- Tooling ownership – is your tool register up to date? Do you know what
tools you own and where they are? If you don’t own the tooling, you can’t move them – check with your supplier. It may state in the small print that your overseas suppliers haven’t sold the whole tool.
TIP: be nice to the current supplier to improve your chances of buying the tools. In many countries you have no legal rights. Don’t spook them by asking direct questions, say your insurers have requested additional information.
- Is there a UK alternative? – If you need a specialist manufacturing process, first check if there’s a supplier locally with the capabilities and proven track record. They may even develop new processes for you. With government supporting UK manufacturing, now is the time for collaborative, innovative-bound thinkers, so approach your supply chain creatively. Follow global supplier Siemen’s lead.
TIP: Once you find one, you’ll need drawings, specifications and part weights to hand.
- Stock holding – as you emerge from COVID you might need supply to be scalable or flexible as demand changes. Perhaps even building up levels of stock to cover the time it takes to move your tooling?
TIP: Check you’ve got space to store extra stock. Could your new supplier store it?
As accustomed reshoring partners, BEC Group understand every product and client need is unique, already guiding many through the reshoring process. To get started email reshoring@becgroup.com
