“Made in America” is not only patriotic. Procuring a portion of supplies from domestic manufacturers offers numerous advantages. The approach of shifting certain purchases to domestic and “near-shore” suppliers has gained traction among companies looking to bolster their supply chain strategies. Here are five reasons why organizations should consider sourcing from domestic suppliers for a portion of their overall supply needs:
- Reduce Your Lead Times:
Long shipping times from overseas suppliers can result in prolonged lead times, making it challenging to respond to changing market demands quickly. Sourcing from domestic suppliers shortens the distance between production facilities and end markets, resulting in shorter lead times. This agility enables your company to adapt swiftly to market changes.
- Impact Your Local Community Positively:
Reshoring efforts help to create jobs in your home country, contributing to economic growth and stability here in the US. This can also lead to a stronger public image and goodwill, as your company is seen as a supporter of the local community and workforce.
- Enhance Your Resilience:
The COVID-19 pandemic exposed the vulnerabilities associated with heavily relying on distant suppliers. Disruptions in global supply chains made it challenging to access critical components and materials, resulting in delays and increased costs. By shifting even a portion of your supply chain to domestic suppliers, you can reduce the risk of supply chain disruptions, ensuring a more stable and reliable source of essential goods and materials.
- Increase Your Sustainability:
Reducing the distance that products travel can significantly reduce your carbon footprint. The US also often has higher environmental standards than countries we import from. Domestic suppliers can be part of your company’s sustainability strategy, aligning with the growing demand for eco-friendly practices and reducing environmental impact.
- Strengthen Your Relationships:
Proximity fosters stronger relationships between companies and suppliers. When suppliers are local or domestic, it’s easier to collaborate, exchange ideas, and build mutually beneficial partnerships. This enhanced communication and collaboration can lead to innovations, cost reductions, and improved problem-solving.
Diversifying your supplier base can be a strategic move that benefits your company by enhancing supply chain resilience and sustainability while also fostering stronger relationships and supporting local economies. When done right, this hybrid approach to the supply chain can create a competitive advantage, driving your company’s success in an increasingly interconnected global marketplace.
Written by Dan Izhaky