Benefits of Local Sourcing for Manufacturing

Manufacturers around the world are more focused than ever on finding ways to strengthen their supply chains amidst rising costs and shipping challenges. Many companies who once opted to source their manufacturing materials internationally are now reversing course and seeking more advantageous options locally.

Local sourcing for manufacturing has many benefits and in this article, we take a closer look at the top benefits of using local suppliers for your manufacturing materials.

Maximize Flexibility by Using Local Suppliers

As a manufacturer, your next big project could be right around the corner. Moreover, none of us like negative surprises when it comes to manufacturing projects, but nevertheless challenges do pop up from time to time. For these reasons, it’s vital that manufacturers have as much flexibility as possible when it comes to sourcing materials. Moreover, most manufacturers want to have an estimate of the amount of materials they will need before they actually select a supplier. Being armed with this knowledge is a key to being able to scale production effectively.

If one of your customers is about to place a very large order for new parts to be produced at your facility, will you have the supplies available to meet the project lead times? By sourcing your materials from local suppliers, the chances are much greater than you will have the material you need in stock in time to turn the project around and meet your customer’s expectations. Generally speaking, local suppliers are going to be much more responsive than suppliers who are located farther from your production facility. That’s because these suppliers can deliver materials much faster and much cheaper if you’re located closer to their point of distribution.

Increase Control Over Your Supply Chain

As a rule of thumb, the more distance there is between your facility and your suppliers, the less control you have over the process. Even though most suppliers assure their customers that they process all purchase orders the same, the truth is if you can meet face to face, there is a much better chance that they will follow through on your orders in a timely manner.

In person meetings with local suppliers allow you to discuss any issues that may arise with your orders and ensure that the quality of the materials is acceptable. By going with local sourcing and more control, it also means communication and pieces of the process don’t fall through the cracks along the way. Suppliers deal with many customers on a daily basis and the last thing you want is to be waiting on materials for a critical project only to find out the supplier has dropped the ball and forgotten the order. This can be prevented by sourcing your manufacturing materials locally and having more control over your supply chain.

Reduce or Eliminate Supply Chain Expenses

More manufacturers are looking for ways to reduce expenses. One of the best places to uncover cost savings is in your supply chain. For many manufacturers, one of their largest expenses each year is shipping costs for supplies. If you are sourcing your materials for manufacturing from locations far away, you will naturally pay more for shipping.

Moreover, for some manufacturers with supply sources that are more remote, the materials may have to be warehoused at interim points along the way until they are ready to be shipped to the final destination, which is your manufacturing facility. For these materials, the shipping costs will be even higher. The good news is that much of these shipping expenses can be greatly reduced or even removed by using as many local sources as possible for your materials.

Boost Your Company’s Image with Short Lead Times Thanks to Local Suppliers

By sourcing your manufacturing materials locally, you’re not just cutting expenses, you’re also boosting revenue. Being able to tell your engineer and product design customers that you have plenty of material available and easily within reach because of your local supply chain gives you a leg up on your competition. As your competitors source materials from far away, they won’t know if they’ll be able to meet customer lead times. By contrast, your customers will be confident that their projects will never be delayed with your manufacturing services thanks to your locally sourced materials.

As Local Suppliers Grow, So Does the Local Community

Another great benefit of local sourcing for manufacturers is that you are helping your community as a whole. As you transact business locally, you are not only strengthening your business, you are also strengthening other businesses in your community. As the strength of local businesses grows, so does the economy and its people through job creation and higher wages. Moreover, the more prosperous local businesses become, the more charitable donations they are able to make to the social causes of the community to help those in need.

Increase Sales by Making Your Brand Environmentally Friendly

When you source your manufacturing materials from local suppliers, you’re not only helping the local economy, you’re also helping the environment. By reducing shipping distances, you’re helping to reduce energy usage and carbon emissions into the atmosphere. In this sense, your manufacturing company is doing its part to secure the long-term health of the environment. Moreover, this also helps the image of your brand as customers will know that your company is environmentally friendly, and they will be more likely to choose you for their next parts project rather than your competitors.