SECURING THE U.S. SUPPLY CHAIN

By Kathy Keyes Webster, AMT Exhibitions Content Manager – Correspondence

With the coronavirus pandemic exposing fragility in long and complex supply chains, manufacturers and OEMs are looking to build greater resiliency by shortening their supply chains. “When manufacturers source closer to home the probability of on-time delivery of a quality product increases,” says Harry Moser, Founder of the not-for-profit Reshoring Initiative and longtime manufacturer. “There is also less waste in packaging, fuel, and inventory carrying, so it’s better for the environment.”

Since 2010, Moser has helped nearly 250 job shop owners, precision manufacturers, and OEMs evaluate the true cost of sourcing along their supply chain. The Reshoring Initiative documents the success of the reshoring trend, provides calculation tools, and other programs to accelerate the trend. The Initiative reports that in the past decade, more than 700,000 jobs have been brought back from offshore, about half of the 1,400,000 manufacturing jobs needed for recovery.

This article first appeared in the IMTS Insider. 
Read the full article: Reengaging the Supply Chain: What Can Job Shops Do?

Steps You Can Take to Help OEMs Bring Production Home

1. Add a “Supply Chain Solutions” section to your webpage.

Promote the benefits of sourcing close to home in your capabilities, news, company blog, about us, or team sections. Here are some examples of how some companies write about it: ENSER | The Rodon Group | Wright Engineered Plastics 

2. Ask OEMs about their environmental commitment.

Long supply chains create more waste in overproduction, inventory, transport fuel, packaging supplies, and wait times. You can show them how sourcing through you can lessen their carbon footprint.

3. Help OEMs calculate the true total cost of ownership. 

Use the Reshoring Initiative’s free online tool: the Total Cost of Ownership (TCO) Estimator®, which includes 30 cost factors. “The TCO Estimator helps buyers to buy smarter and sellers to sell smarter,” says Moser.

4. Use the Reshoring Initiative’s Import Substitution Program.

Identify major importers to help you convince importing companies to source from you. The Reshoring Initiative provides data on importers of products you produce or could produce.

5. Help OEMs determine if you could help them meet “Made in America” specs. 

One way to do this is to use the Reshoring Initiative’s Supply Chain Gaps Program to identify products with high imports and no domestic sources so you can become the only U.S. producer and your customer can benefit from a “Made in America” label.

6. Call on current and potential customers. 

Of course, nothing can replace relationships. Touch base with customers to let them know about your capabilities, your dedication to quality, new machines, digital manufacturing solutions, and commitment to your community.