U.S.A. Sourced Industrial Castings

Off Shoring Considerations and Factors:

Many companies make sourcing decisions on base price alone; resulting in a miscalculation of actual offshoring costs.

Total Cost matters more than raw labor rates. Low labor rates look attractive, but the total process cost eats into the savings a lot faster than people expect. Time zone matters. When you need effective responses to critical incidents it's better to be on the same clock cycle--and that's usually the middle of the day at your site, not the middle of the night. Language matters. If you can't communicate effectively, the work isn't going to be done correctly. It takes time to get to a stable, productive process. From quote to shipment of castings could take 2 to 3 times longer than a domestic source.

All relevant factors should be considered when determining the total cost of ownership including:

  • Delivery
  • Quality
  • Rework
  • Warranty
  • Intellectual Property
  • Natural Disaster Risk
  • Political Instability Risk
  • Inventory
  • Emergency Air Freight
  • Travel Cost/Time or Local Onsite Audit
  • Communications
  • Green Considerations
  • Wage and Currency Changes
  • Language Barriers
  • Time Zone Burden
  • Product Liability
  • Personnel Risk
  • Freight Cost

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