What to Know About Domestic vs. Overseas Supply Chains

If you need to choose between having industrial parts fabrication done overseas or at home, they both come with pros and cons. Understanding the advantages and disadvantages of these two supply chains can help you weigh them relative to your business model and product to get a higher ROI.

BSM North America wants to help you make a decision that feels appropriate for your needs, so let's compare the strengths and weaknesses of each supply system.

Domestic Supply Chains

Domestic supply chains mean you are using a local source for materials and products for manufacturers within your country. It can be an easier and quicker option than overseas suppliers and provide a fast turnaround, especially if the product needs to be delivered or produced in a certain amount of time.

Pros of Domestic Supply Chains

Along with it being a more convenient option, there are some other good reasons to choose local or national suppliers:

●        Investing in domestic supply chains can help with PR because it shows you work with resources and pick products from your community.

●        It lets you know exactly what you are getting because you can visit the suppliers for site inspections, development, and management needs.

●        It can be easier to get specialized products from a local source because you can visit them and explain your needs in person.

●        If there is a short supply chain, domestic options can help predict delivery times more efficiently, resulting in higher customer satisfaction.

Cons of Domestic Supply Chains

Before making the decision to work with domestic suppliers, consider possible reasons that might make it difficult:

●        Choosing to terminate a contract with the supplier could cause publicity issues.

●        The high-quality products you are looking for may not be available in your country.

●        Economic implications could impact delivery and supply chains.

●        Utilizing innovations could cause potential resistance due to change.

Overseas Supply Chains

Overseas supply chains are becoming more frequent as demand grows for products. One of the biggest reasons for outsourcing is cost savings. The fact is, it's often cheaper for manufacturers to outsource the products than produce them in-house because the labor is cheaper and certain materials are easier to access.

Overseas Supply Chain Pros

In addition to cost savings, overseas supply chains can offer other benefits, including:

●        A larger variety of resources and products than what is found domestically.

●        Access to worldwide suppliers.

●        More options for producing small quantities.

●        Variations in materials, skills, and resources from domestic sources.

Overseas Supply Chain Cons

However good overseas suppliers might be, there are some good reasons to be wary of them, like:

●        Technical or industrial standards may be different and not meet domestic requirements.

●        More restrictions on exports, including tariffs and quotas.

●        Required documentation could be time-consuming and complicated.

●        Changes in currency rates can be problematic.

BSM North America, Your Trusted Source for Exceptional Products

The difference between domestic and overseas supply chains is clear, and it comes down to what is the best option for your company and your customers. At BSM North America, we are in the business of creating the highest-quality products via commercial machining technology streamlined for our client's needs. So, whether you are looking for welding support or want to design steering wheel columns specified for your vehicles, we have you covered.

Our experts are here to answer your questions, so message us online or call us at 952-890-8146 today.