Thursday, June 20, 2013
Too often purchasing people are making buying decisions based on the fact that "a mold is a mold so go with the lowest cost." This has been the thought process for too many years. What happens when the mold is delivered and it's not producing good parts? When quality becomes the issue? How do you manage through that? There is no substitute for working with domestic sources. Creating jobs in the U.S., having the ability to visit your mold shop for mold trials within the U.S., reducing cost of travel and time away from the shop, is not only cost effective but a significant benefit. Chinese manufacturers are experiencing double-digit inflation in wages and other manufacturing costs. It no longer pay to go off-shore for manufacturing. Reshoring is the wave of the future!
Total Cost of Ownership Estimator™ is a free tool used by hundreds of companies for better sourcing decisions. It should be used to convince customers to buy domestically. Data suggests that 25% of what has been off-shored should come back if companies use TCO instead of price for sourcing decisions.
Posted by M.R. Mold & Engineering at 11:04 AM