Sourced from our Procurement People Network LinkedIn Group, Tom Greco shares...
Reshoring your supply chain means you decrease your dependence on countries in other parts of the world. For example, if you’re building an automobile, you might assemble it in America, but if the bolts for the engine come from China, you’ll have to wait for them to ship across the Pacific Ocean. This could result in disruptions to your production schedule. And, with production so far away, how could you ensure that the quality is up to par?
If this isn’t enough reason to reshore your supply chain, here are four more:
As overseas wages increase, transportation and fuel costs grow, and responsiveness continues to lag, it is becoming more apparent that reshoring is a necessity. If you still need more examples of how reshoring benefits industrial production, just take a look at the manufacturing powerhouses below that are serving as a model.
General Electric moved their production of water heaters and high-end refrigerators from China to Louisville
Ford is investing $168 million in its Ohio Assembly Plant
Wal-Mart plans to increase its sourcing of America-made products by $50 billion over 10 years
These companies are just a sampling of the thousands of businesses bringing manufacturing back to the U.S. If they are doing it, why aren’t you?