The True Cost of Cheap Metal Stampings
It’s often said that golf is a game of inches. Procurement is similar in that it’s often played like a game of pennies. For metal stampings, saving pennies per part can be an attractive way for companies to achieve their bottom-line goals.
However, there’s more than meets the eye when it comes to sourcing metal stampings. We’ve worked with many customers who have learned the hard way that their organization winds up paying in other, more painful ways for cut-rate stampings sourced overseas. In this article, we’ll cover the unexpected ways that making your purchasing decisions based solely on price can wind up costing you in the long run when it comes to metal stampings.
Quality is the most often cited reason manufacturers decide to reshore or nearshore operations, but it’s often not considered when sourcing decisions are made. Parts arriving out of spec may require rework or come back on warranty, which contributes to delay that is only exacerbated by the time and money it takes to ship from overseas and back again.
If out-of-spec parts enter your supply chain, the results can be disastrous. Poor quality safety-critical parts put consumers at risk, and the financial consequences of recalls are steep. If you ask us, we think that gambling on a cheap metal stamping supplier is a bad bet.
Lead Times and the Supply Chain
The only things that help with the pain of today’s supply chain are the internet memes. The Suez canal disaster and the record-breaking backlog of ships still waiting to dock at California ports are two examples of situations where goods have been trapped in transit. These situations create a supply chain bullwhip effect that can have consequences such as shutting down auto production lines and causing dire shortages of essential products. If your parts are the cause of issues like this, then you can risk losing customers or even incurring fines or other charges.
When you compare the total carbon footprint of stamped parts manufactured overseas against those produced domestically, you’ll see that domestic parts are much gentler on the environment. Depending on where parts are sourced from, manufacturers abroad may not be required to conform to as many environmental regulations as North American suppliers do. It’s also important to consider the sustainability ramifications of shipping and logistics in getting the finished parts across the ocean and to your facility.
Let Us Show You Value
In light of these risks and the effects of the Covid-19 pandemic, it’s no surprise that many OEMs and tiered suppliers are looking to reshore or nearshore more of their manufacturing. While the sticker price may be higher, having your products “Made in the USA” can save you time, money, and a whole lot of headaches in the long run. Studies have also shown that most American consumers prefer to buy products manufactured domestically, and many of those buyers are even willing to pay a higher price for them.
If you’re exploring reshoring your metal stamping, plastic molding, or insert molding projects, we are here to help. Connect with an LMC Industries expert today to get started.
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