Reshoring Your Critical Components?

Have you considered reshoring critical component manufacture in the last 6 months? Here are 5 key questions that will definitely need answering: 1. What’s your main objective? Do you need to reduce cost, reduce risk or improve quality? TIP: It is probably all three but put them in order to help you select a new UK supplier. 2. Are you comparing costs correctly? 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). 3. Who owns the assets? Is your tool register up to date? If you don’t own the tooling, you can’t move it – check with your supplier. It may state in the small print that your overseas suppliers have not sold the whole tool. TIP: Be considerate to the current supplier to improve your chances of buying the tools. In many countries you have limited legal rights and you don’t want to rock the boat unnecessarily, approach with caution. 4. Is there a UK alternative? If you need a specialist manufacturing process, first check if there is a supplier locally with the specific capabilities. If not, with government supporting UK manufacturing, now is the time for a collaborative approach. TIP: Once you find a supplier, you’ll need drawings, specifications and part weights to hand. 5. Is now the right time? With COVID and Brexit impacting the demand for your products, you might need supply to be flexible, fluctuating at short notice to meet the changes. Is your current supplier able to adapt with you? TIP: There has never been a better time to approach your suppliers and see how they can help you to navigate the challenges. 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 us 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. As accustomed reshoring partners, we understand every product and client need is unique, already guiding many through the reshoring process. To get started email reshoring@becgroup.com or give us a call 01425 613131. We’re here to help.

For more information on Reshoring Your Critical Components? talk to BEC Group