When a business is looking to have a product made, they will typically get prices from different suppliers. From there, they will decide on who they will buy from based on various considerations, such as quality, cost, lead-time, and so on. Businesses may find themselves choosing between a domestic manufacturer, an importing supplier, or direct from overseas, where the import is cheaper at first glance, and the unit price is the driver.
However, deciding to use an off-shore supplier can have unforeseen ramifications:
- Lead times that may not be apparent when purchasing from overseas. It can be ok for the first order and then you are in trouble. What if the parts are non-conforming?
- Third-party issues such as shipping delays, wharf issues or agents. Nor are they affected by exchange rates, insurance or duty. Do you need to employ someone or send them overseas to set up a supply chain? Are the benefits what you expected?
The benefits of using a local supplier may not be apparent when comparing quotes:
- All transactions for a domestic supplier are in Australian dollars
- Communicating is uncomplicated
- Lead times are far shorter, so there is no need to keep substantial stock or forecast many months extra in advance.
- Your domestic supplier has local specialists who understand local conditions to enable swift, competent service. A domestic manufacturer can react faster when delivery is required.
Using a foreign supplier without due consideration can have a considerable impact on business, both financially and through added stress. The reliability of your local supplier, like White Industries, where everything is Australian made in an Australian-owned foundry and machine shop is undoubtedly a huge benefit.
If you are suffering from any of the issues mentioned above, it’s time to give White Industries a call on 1300 825 980. Jim Stevenson will have a frank discussion about your local supply and outline the impact White Industries can have on your business.