Building supply chain resilience is a major benefit of expanding to a global supply network. It is essential for your company to have the capability to bypass supply chain interruptions. By broadening your supply chain network internationally, your company will be able to handle unforeseen circumstances with ease. Partnering with a professional supply chain management company, Like Chainlogix, means that you will be flexible when facing ever-changing manufacturing dynamics. Discover how globally rooted supply chain management companies can help you build supply chain resilience by evaluating and leveraging foreign suppliers- while proactively addressing the risks involved for you. By doing this, you will be able to continue doing what your company does best.
2. Risk: Quality Concerns with Foreign Supplier
A popular but false belief is that foreign suppliers can provide poor-quality product, thus disrupting supply chains. When discussing this issue on a global supply scale, China is always the front-runner. What many don’t know is that China has an outstanding reputation in manufacturing knowledge and the ability to produce high quality, affordable parts- which is unmatched by any other country in the world. In 2019, the United Nations Statics Division, reported that China was responsible for more than 10% above what the US produced in global manufacturing output. China is advanced in comparison to US manufacturers in terms of electronics and even plastics manufacturing. They seek out advancements in manufacturing processes with a goal of making high quality parts at a faster and more affordable rate. Outsourcing component manufacturing to foreign suppliers can save your company precious time and money.
A partner in supply chain outsourcing will provide you with a boots-on-the-ground global connection to foreign supply chains. Recently, Chainlogix secured a major contract with an American OEM because their customer was unable to find the quality necessary for their part’s production in the United States. The customer’s domestic supplier dropped them with short notice and a Chinese manufacturing source was able to produce the product on short notice and even provide some manufacturing enhancements with the product. Using a supply chain management company that works closely with reputable foreign suppliers, like those found in China, is the best move in ensuring supply chain resilience.
Risk: Instability of Foreign Government Can Be a Complex Issue to Navigate
In today’s world, the global COVID-19 pandemic crisis has affected all aspects of how we navigate business production, and trade. For example, even countries that dominate the manufacturing world, have left many companies with hundreds of thousands of orders unfulfilled. As business owners and customers, we are seeing these negative effects every day, when trying to provide or purchase goods to and from our favorite businesses. Countless companies and their customers have been left empty handed and disappointed. Thus, making this a prime example of why having a multitude of suppliers in various countries around the world can help to combat the risk of having your business suffer due to global issues that are impossible to have control over.
Adding to the complexity of today’s tense logistical situation is the push for carbon emission reduction. For example, some provinces in China have experienced government-mandated power outages. Because Chainlogix has “boots on the ground”, we have been able to assess the risk beforehand and determine new sources in provinces who have been unaffected by these outages; thus, building supply chain resilience for our customers. Because we are experts in offsetting risks, we have a safety stock solution to act as a buffer. During this global pandemic complicated by complex foreign government mandates, we have still been able to deliver components to our customers without a single interruption. By letting our supply chain management professionals handle expanding your company geographically, you will have peace of mind knowing that you have a “back-up” plan.
3. Risk: How to Evaluate Foreign Suppliers Without an On-Site Visit
As your business continues to grow, it will likely become necessary for your company to evaluate foreign suppliers without having an actual “on-site” visit. If your company size is limited or you are unable to travel to many global manufacturers, you may want to consider outsourcing to a supply chain management company. A supply chain management company, like Chainlogix, has a broad network of reliable suppliers all around the globe. Supply chain management can execute the vetting process for you. This will make it easier for you to sit back and operate your business from home base. This will result in your company saving precious time, valuable money, and help to avoid potential quality concerns. Most companies do not have unlimited resources to be able to hire additional personnel and acquire additional travel expenses- on top of taking their business globally. Having the safety net of a global network will naturally build your supply chain resilience. You will be able to expand your company with confidence in knowing that they will be capable of handling all of the ins and outs of global management- with your best interest as their utmost priority.
Looking for a partner who can manage your supply chain globally, and help to build supply chain resilience?
Contact the professionals at Chainlogix to learn about how we can navigate your supply chain disruptions by using global sourcing, shrinking costs, expediting production, and increasing quality.
4. Make Your Supply Chain Unbreakable
As your company expands, you will no longer be able to rely on one single source for your manufacturing needs. You will likely even need multiple locations in different geographical areas for warehousing and supply production. Supply chain reliability will help you improve the quality of your products without running into unnecessary setbacks. Partnering with a company to handle supply chain problem-solving means your business will run with ease and leave your customers satisfied. Consistent service through your supply chain will mean less delays and interruptions- which in turn, will increase your brand’s reputation and increase customer loyalty.
When you partner with a company, like Chainlogix, you will gain exceptional customer support, guarantee of supply, and increased savings. A supply chain management company will handle international obstacles, such as different time-zones and languages that otherwise would become challenging interferences to overcome. Chainlogix will improve your reliability, resilience, and complexity of your supply chain- with global focus in mind. Your supply chain does not need to be perplexing in its operation, but it should be indestructible. The bottom line is: a disruption to your supply chain= loss of profit and confidence of your loyal customers.
Since first opening its doors in 1988, Chainlogix has been an industry leader in creative, engineered solutions for manufacturers. Our highly experienced supply chain professionals assist in every step of the manufacturing process, from design to production of quality products. Through our strategic partnerships, firm commitment to unsurpassed customer care, worldwide sourcing capabilities and offices in the USA and China, clients achieve a sustainable reduction in their total acquisition costs and build supply chain resiliency.
At Chainlogix, we’ve spent years cultivating relationships with proven suppliers and securing the most competitive prices for our clients. We proudly offer the best custom-tailored solutions in the business, and with exceptional customer care that places a high emphasis on human relationships and connections.
We serve clients across a broad range of markets including industrial and consumer electronics, industrial machinery, telecommunications, lighting, and construction. Our services encompass all areas of the procurement process such as:
- Product development, design and NPI
- Supply and demand planning
Let Chainlogix strengthen your supply chain resilience by managing your company from anywhere in the world. Contact Chainlogix to learn more about how we can provide supply chain management in the global expansion of your business.