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With an astounding 80% of automakers experiencing business interruptions due to the COVID-19 shut down of non-essential business, Many are looking closely at the effects of globalization of supply chains1. Particularly, auto OEMs are either actively reshoring or are planning to reshore in order to safeguard their supply chains and their business from the economic and political effects of the virus.
Reshoring’s advantages are countered by the uncertainty about the costs involved in doing so. Automakers are facing major challenges as declining production and sales increase and OEMs are wary of moving to what was traditionally the more costly method of manufacturing, compared to offshoring.
But as partnership agreements in the supply chain continue to fail due to the pandemic, auto OEMs are considering the price they are paying for initial offshore savings. Production line shut downs, product problems as well as delays in transport are all commonplace and expensive.
Moving to an U.S. supplier for custom injection-molded automotive parts is a great way to a highly skilled and reliable supply chain that can be responsive to the demands of manufacturers in four areas:
PARTS AVAILABLE
Automotive manufacturers have to store customized injection-molded plastic components from plastic products supplier to meet the demands of vehicle owners and stocks of replacement parts. Offshoring places consistent production at risk due to the greater risk of logistical problems as well as time zone miscalculations and defective components.
In contrast, local custom injection molders significantly reduce the supply chain, by eliminating the complexities of international commerce. The parts made of plastic that are defect-free are made quicker, and they are supplied to OEMs of automobiles when they arethe time comes for them to use them.
PRODUCTION LIGHT EFFICIENCY
The biggest hurdle for efficient offshore production is the language obstacle. The use of basic English could make a project go up and running, but confusion usually occurs when colloquial terms don’t translate into simple explanations and concrete steps, or if written requirements for the product can’t be reviewed properly.
This is also true of cultural gaps, in which the notions of time and speed aren’t always in sync. In the end, productivity is affected and crucial deadlines are not met.
The outsourcing of manufacturing to established U.S. suppliers effectively negates these risk in the production line, and all through the manufacturing cycle.
COMPONENTS WITH DEFECT-FREE PERFORMANCE
Injection-molded components that play a crucial role in auto functions and are complex in design may be damaged if there is no consistent oversight and quality control. Parts that are not properly maintained are dangerous, however parts manufactured in other countries pose additional challenges for the maker, such as:
Are the components rebuilt within the U.S., or returned to the country from which they came?
If it is rejected, can the project cover the additional cost of shipping and processing?
Who is accountable for the legal liability for products and other litigation?
However components made in the US remain in compliance with manufacturer quality assurance requirements. If necessary, course correction can be accomplished efficiently since solving product-related defects don’t create a variety of other problems.
EFFICIENT LOGISTICS
Transoceanic shipping and the varying time zones will automatically add to the product’s lead times. This isn’t efficient on its own without incorporating the possibility of adverse weather, customs issues as well as other delivery delays. obstacles.
Utilizing suppliers close to home reduces waiting times and shipping hurdles, allowing automobile manufacturers to respond quickly to the demands of customers. Additionally, the costs of shipping to and from the United States are typically less expensive due to the distance and the required mode of transportation.
It’s a time of uncertainty and the amount of caution employed in the automobile industry shows it. Reshoring is an effective and becoming increasingly sought-after solution for automotive OEMs in search of custom-designed injection-molded components and an import supply chain that can consistently meet this need.
