The current climate is defined by uncertainty. Our turbulent political situation makes the prospect of global sourcing especially daunting. Many companies have come to rely totally on global sourcing and are using an exclusive one-country approach. This practice may present a risk to their supply chains, business continuity, and ultimately, to their bottom lines.
Companies in this situation could be forced to pay higher prices on imports, or have an urgent need to seek alternative suppliers. For this reason, it is strongly recommended to diversify sourcing. While “re-shoring” is the buzzword of the moment, the reality is that there are simply not enough domestic producers of iron components to meet the demand at any price, particularly in the short term. Thus far, the primary targets of anti-import sentiment seem to be China and Mexico, so SIGMA OEM suggests diversifying your supply chain and considering sources in India.
SIGMA OEM practices what we preach; we did this very thing 15 years ago when it became clear that relying on one supplier in one country was a high risk proposition. We set up strategic supplier relationships in India to replicate the overall success we had experienced in China. As a result, SIGMA OEM has “boots on the ground” and an in-country presence to mitigate risk and protect our customers from any problems they may encounter when sourcing globally. While it is clear that challenges can always arise with this type of enterprise, SIGMA OEM’s infrastructure enables us to address issues efficiently and productively. Most importantly, we insulate and protect the customer.
With the industry–and the world–in its current state of flux, it is strategic to broaden supplier bases. What may start off as a prudent and defensive move for a segment of a business could wind up saving significant costs–and protecting the business as a whole.