COMMENT: Localising supply chainsby ASC Staff on Jan 19, 2017
Today, more than ever clients in various industries globally are looking at ways to develop tighter and more closely knit relationships with their supply chain.
Players that off-shored their facilities to emerging economies, are re-thinking if their efficient but long supply chains are still functional as international inbound supply chains create longer lead times, inventory cost burdens on manufacturing facilities and also incur added custom duties.
These changes have called for companies to adopt a more open minded approach in allowing local vendors to become part of their processes and ensuring that both sides support the overall vision of growth.
In this region, it is very important that the idea of importing spare parts, or repairing parts only on a need basis, changes. International brands and the regional players who buy these brands need to make a conscious and a unified effort towards localizing the supply chain so that both parties can benefit.
Compared the last 20 years, things are definitely changing - more and more brands are setting up manufacturing facilities locally and there has been an increase in the number of brands building long term strategic alliances with local suppliers.
Players entering the market are now understanding the potential of building products for the market from the very beginning and the benefits this approach provides include controlled costs, no import costs, reduced delivery lead time and inventory accumulation.
Additionally, the overall trend to carry out plating locally on new manufactured components has increased because of greater awareness of the benefits associated with it. However, those players that have been slow to localize their operations, are seeing an obvious loss in market share.
Marami works very closely with some of the leading companies in the region, and has had to adopt a more open approach and relationship towards servicing its clients in the plating industry. By providing clients with an opportunity of localizing their plating and spare part repairing needs, working as an extension of their clients, keeping their centers small and cost effective, while at the same time investing heavily in R&D, Marami offers personalized solutions at affordable prices to its clients.
Although long supply chains sometimes seem cost effective to start with, the surplus inventory and the lead time deviations caused by them often nullify the benefits achieved from sourcing products from global supply regions. Localizing the supply chain benefits both the brand as well as the suppliers in any economy.
For suppliers, localization helps to: improve overall technical know-how due to increased interaction with international specs; innovate; and have a direct positive impact on the economy as parties involved are able to maximize spare capacity and keep busy.
For international brands, localization helps in: exercising a direct control on the supply chain locally instead of depending on global vendors, reducing the overall cost & risks as companies do not need to store or import large quantities, and in customizing and modifying designs based on regional needs as well as on geographical, cultural and working condition differences.
In order to maintain a competitive edge, supply chains need to become responsive and flexible to market forces. A long supply chain works against a company’s ability to quickly and efficiently respond to disruptions to the market. Localization empowers organizations by helping them reduce costs, sense threats and react quickly. It helps an organization to realize tangible cost benefits in turbulent times and maintain competitive order fulfillment lead time.
When we speak specifically about the manufacturing industry, a non-localized supply chain in most cases leads to high waiting times for imported parts, increased shipment costs, and a longer response time to local market fluctuations which eventually leads to organizations left with either unsold inventory or stock outs.”
Marami’s system features include: complete hard chrome plating setup; a pioneering Electroless Nickel plating setup; complete stainless steel passivation; complete Nickel Sulfamate, tin plating and copper plating setups; complete Manganese & Zinc Phosphate and Black Oxidizing setups; portable brush plating and on-site applications; and machine shop with lathes, grinders, welding and polishing systems.