As industry continually becomes more complex, automation is a strategic necessity for companies to remain relevant. Outside of the US problems with labor, power outages and shipping disruptions have become more acute and reshoring has become a popular avenue for US companies.
Fact: When you decide to inact reshoring to your supply chain you have greater control.
Consider: When you add an automation system to your reshoring equation, your supply chain is not only more efficient, it is now much more competitive.
When a company reshores to the US, they have the ability to incorporate an automation system to their distribution center, allowing them more complete control of their supply chain. Automation saves time, reduces labor, promotes worker safety, all while increasing efficiency.
In addition, if the goal of a company is to pursue Just-in-Time distribution, a more spread out supply chain renders this much more difficult. It is much easier to have production manufacturing and distribution all housed close to one another to make it more efficient.
A reshored production allows transparency into every process of your operations/facility that an off-shore model can not. The offshore model does not give you the control of your supply chain.
Some companies opt to partially reshore their production and thereby their storage and distribution. This allows them to maximize storage efficiency while maintaining a JIT delivery with their automation system.
For example, Tier 1 suppliers in the automotive industry would directly benefit from partially reshoring of their production facilities. In addition to delivering the right parts at the right time, the sequence in which the individual parts are delivered is also important. The deliveries must correlate in the production plant with the order in the assembly of the vehicle.
Efficiently sequencing parts allows manufacturers to improve their assembly line operations and meet demand. There is also less risk in a shorter supply chain. The Covid-19 Pandemic is an example of how a completely offshored, longer supply chain can be disrupted, causing interruptions in production and efficiency that affects the bottom line.
As technology and automation continue to improve a production facility’s processes, reshoring, or partially reshoring, your facility becomes an opportunity to gain a competitive edge within your industry.
Want to talk to the experts at Stoecklin about the benefits reshoring to your supply chain and of Automation’s Role in Reshoring, contact us.
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