Question: why is localization important? Answer: it satisfies your customers and shareholders.
Finding local suppliers for U.S.-based operations of European companies is important to reduce delivery time to customers, and total landed cost for managing directors. Wilmarco Technologies has the experience to help manufacturers improve delivery time and landed cost in their supply chains.
Reducing delivery time to customers is possible when suppliers are used in the local U.S. market, compared with production and shipment from European suppliers. As an example, the distance from Rotterdam to New York City is over three thousand miles and requires more than ten days by container ship. Including land transit time, total transport time can be more than two weeks from European supplier to receipt at the U.S. point of use. This should, and can, be reduced to a few days.
Customers benefit from shorter delivery times, and this can be used as a competitive advantage. In a strong economy, delivery times are often extended when manufacturing capacity is highly utilized. A European manufacturer operating in the U.S. can leapfrog competition by localizing supply to the U.S. supplier base.
Total landed supply chain cost is also improved when supply is localized to the U.S. market. Inventory cost can be significantly reduced for product both in transit and in stock on both sides of the Atlantic Ocean. When U.S. suppliers are used, it becomes possible to achieve a nearly continuous flow of product shipments from the U.S. supplier to the point of use.
Managing directors and shareholders can see the benefits to their strategic plans when supply is localized from Europe to the U.S., for their U.S. operations. Cost and delivery time improvements are immediate benefits. Improved supply chain reliability and competitiveness by having a second source of supply are strategic benefits that appear later.
Contact Wilmarco Technologies to learn how to find high quality and cost effective local suppliers for your U.S. operation.