Table Of Contents
- By outsourcing manufacturing, American companies have lost the opportunity to be intimately in tune with their entire production chain.
- Automation and blanket PO's can help insulate you from global supply chain disruptions.
- Investing in the American domestic supply chain is the only way this great country can pay down the deficit of development and manufacturing of high-tech and high-quality products.
For the last 30-plus years, many businesses have been outsourcing manufacturing to foreign countries. Initially, it began as a way to offload many mundane or seemingly non-value-added activities. It has since transpired into offshoring future technology manufacturing work and development. This carries some major drawbacks for the American economy as a whole.
Throughout the pandemic, we had a front-row seat to the challenges of sourcing parts and products from overseas. We’ve seen the global supply chain’s vulnerabilities and collectively, we need to do something about it. It’s more obvious than ever that we need to focus on bringing our manufacturing capabilities back to our home turf.
Domestic capabilities have decreased for several reasons, including cheap labor being available elsewhere and increased access to larger volume production runs. Listen, we get it–procurement within the United States can be costly.
But with some strategic planning and creative ways to offset costs, investing in domestic manufacturing and the domestic supply chain brings tremendous benefits. Dig into the 3 main reasons you should invest in strengthening your domestic supply chain partnerships below.
Modus Advanced is a world-class domestic manufacturing partner specializing in custom RF shields. Contact us to learn more about how we can serve you.
Embrace Innovation at Home
The opportunities for innovation are endless at every stage of the product development cycle. Once a country has pushed off those capabilities, restoring them can be difficult and costly.
By outsourcing manufacturing, American companies have lost the opportunity to be intimately in tune with their entire production chain, including research and development efforts. Cutting the cost associated with R&D has historically allowed companies to focus their efforts elsewhere: on doing what they do best and offloading the low-value-added activities.
While this may have been best practice in the past, the focus now needs to shift to the ways that businesses can take innovation to new heights here at home.
Stay Ahead of the Curve of Automation
As a domestic manufacturing company, we need to stay ahead of the curve when it comes to automation. It benefits our customers, like you, when we adopt the most efficient technology in our workplace. Failure to adapt and implement automation means that businesses will likely be left in the dust as competitors improve their processes through automation.
As businesses begin to bring their manufacturing capabilities back to America, we’ll face higher wage requirements and possibly a lack of skilled labor. It’s not all doom and gloom though. As manufacturing plants make it back to American turf, we’ll see the available skilled labor force increase because of demand. Until that time, to combat the lack of skilled labor, we need to leverage automation to keep the train moving.
Throughout the pandemic, the labor force has been leaving jobs in the service and healthcare industries en masse–this was no surprise. But manufacturing took a huge hit, too. On top of that, we’ve also witnessed the “Great Resignation” which is exacerbating the impact of baby boomers retiring and a lack of incoming skilled workers.
Automation, even with a large price tag up front, can help bridge this labor gap and save you money in the long run.
Utilize Blanket PO's
One of the most effective ways to tackle domestic supply chain challenges is by working with your chosen manufacturing partner to place blanket purchase orders well in advance. Back in 2020, we started seeing the challenges our ports were facing as supply and demand coupled with poor port management and COVID wreaked havoc on procurement. OEMs like you could not get the parts you needed as fast as you needed them. The gravity of this is not lost on us.
To meet those challenges, we worked closely with our customers to develop a blanket PO strategy that we help mitigate the impact of the global and domestic supply chain disruptions. We continue to implement these strategies as the supply chain course corrects. By working as your strategic partner in navigating supply chain challenges, you’re better able to get your life-saving and life-changing products to market faster.
Some of the benefits of blanket purchase orders include predictability and cost savings. To get the most out of these benefits, include a note that says “Ship ASAP”, or allow for shipment ahead of expected release dates. While blanket POs can’t 100% allow us to guarantee prices, it’s an incredibly simple way to insulate yourself from fluctuations in global and domestic supply chains.
Hit the Easy Button: Partner with Modus Advanced
Experts have concluded that better forecasting and responses to supply chain disruptions are going to be pivotal in navigating challenges better. Investing in the American domestic supply chain is the only way this great country can pay down the deficit of development and manufacturing of high-tech and high-quality products.
If you’re interested in working with an American manufacturing partner that is leveraging innovation and automation to deliver speed and precision, give us a call at 925-960-8700 or contact us online today.