Domestic Procurement Is the Key to Supply-Chain Efficiency
American sourcing means that you are meeting your supply chain in person. This facilitates the ability to engage in meaningful conversations in a mutually beneficial relationship. By its inherent nature, domestic sourcing removes many complicating factors from the equation. The result is a seamless relationship with clear objectives and improved performance. And most importantly, improved stability.
It provides you an opportunity for collaboration in innovation and communication with clarity. This engagement is a recipe to for greater control and a higher quality of service.
Due to Covid, companies that rely on imports have suffered in many areas: pricing, schedule, and dependability. The procurement process has become entangled in excessive government controls, and an uncertain future.
There is more flexibility when your operations are not dependent on shipping restrictions. Machine shops can coordinate production operations and distribution of their products without the fog of uncertainty.
Local suppliers are also more reactive to demand and changes. The same cannot be said for companies that rely on international sourcing, which find it challenging to coordinate a shipment across the border.
For machine shops in the USA, sourcing locally and not having to depend on international shipments gives them the benefit of reliable production and scheduling.
Machine shops that rely on importing materials have suffered when freight and travel is restricted due to the pandemic.
There is greater efficiency when you are close to your supplier. You have more control over the process. And you have the advantage of dealing more directly with issues should anything change in the schedule or quantities (as they inevitably will). Similarly, concerns are addressed directly with quicker reaction time.
Effective communication ensures a smooth operation, hence a greater control over your suppliers. There is no easier way to achieve this than domestic sourcing.
The Covid 19 pandemic illustrated the susceptibilities involved in relying too heavily on foreign imports. Local manufacturing and sourcing is the best hedge against the painful disruptions caused by a complex, overseas supply chain.
At Cheetah Precision, we are centrally located in the United States in Minnesota. Our materials are locally sourced, and we pride ourselves in the ability to respond quickly to our changing customers' needs.
The Impact of COVID-19 on Machine Shops
The effects of the COVID-19 pandemic were widespread, affecting every aspect of business: manufacturing production and machining orders, sales and distribution, and how we do business.
Most prominently, Covid heavily impacted the shipping industry. Businesses reliant on the import and export system were affected the most. One particular industry is machine shops.
Machine shops that do not require imported materials for machining weathered the pandemic with greater ease and control.
Adaptation to Quickly Shifting Consumer Demands
Due to government-imposed trade restrictions, many companies found it hard to adapt. One challenge borne of the pandemic is changing customer demands.
Manufacturers with domestic sourcing were in many ways protected from these supply chain difficulties. There were still challenges, but a fraction as compared to companies reliant on international sourcing and the government oversight involved.