The COVID-19 pandemic, combined with numerous geopolitical factors, has resulted in major disruptions to the supply chain in recent years. In particular, US companies that rely on China for manufacturing have suffered issues related to frequent lockdowns. In light of these problems, the country is reconsidering its traditional approaches to manufacturing and logistics, and businesses need to stay abreast of the latest laws and policies if they hope to stay competitive. Read on to learn how retailers are future-proofing their supply chain in light of US manufacturing reshoring.
Is US Manufacturing Coming Back?
Manufacturing in the US vs overseas has been a topic of debate for years. However, recent legislation is causing many businesses to reassess their current retail expansion strategies. In February of this year, the U.S. House of Representatives passed the America COMPETES Act of 2022. Along with increasing the competitiveness of American companies, the bill aims to improve supply chains and reduce the shortages that have become common in recent years.
In light of US manufacturing reshoring, companies are asking themselves whether they’re properly positioned to compete for available loans and subsidies. Making changes to your supply chain now could better help you benefit from the new legislation while future-proofing your business against shortages and disruptions down the line. However, not all companies are poised to make the change.
Benefits of US Manufacturing Reshoring
Recent events have left retailers feeling helpless about supply chain issues. However, making the switch to domestic manufacturers can go a long way toward guaranteeing your business a bright future. Here are some ways in which manufacturing goods in the US can help you control your supply chain destiny moving forward.
Save Time on Production
Manufacturing products overseas increases costs along with the time it takes your goods to reach consumers. Not only does moving this task closer mean customers receive purchases faster, improving your service ratings, but the entire sales process is also accelerated. As a result, your company is more agile, and money stays in your pocket.
Save Money on Shipping
It’s no secret that shipping is a significant cost in the eCommerce world. When you manufacture goods closer to home, you spend less money shipping products to customers and shipping supplies overseas. This is particularly important in an emergency, when you may need to air ship items out on a faster timetable.
Enjoy More Control
It’s hard to control what’s happening in your manufacturing plants if they’re located thousands of miles away from your team. One of the benefits of domestic manufacturing is that it gives business owners the opportunity to ensure goods meet their high standards and specifications. In the long run, using lower quality items can cause you to spend more on quality checks, repairs, and even processing returns.
Errors are all too common in the supply chain. However, increasing the length of a product’s journey from manufacturer to customer also raises the number of opportunities for mistakes to occur. By shortening that chain, you can reduce the odds of your product being damaged, lost, or even stolen in transit.
As your eCommerce business grows, it can be hard to keep up with your company’s logistics needs. Not only do you have to get goods out the door on time, but you also have to manage reverse logistics for products coming back into your warehouse. By investing in a third-party fulfillment service, you can take the first step toward optimizing your logistics and putting your business in the best position to benefit from US manufacturing reshoring.
To find out more about ShipHero’s fully outsourced fulfillment solution, talk to one of our Fulfillment Experts today.
Maggie M. Barnett, Esq. COO of ShipHero
About the author: Maggie M. Barnett, Esq., is the COO of ShipHero. She is responsible for planning and executing the overall operational, legal, managerial and administrative procedures, reporting structures and operational controls of the organization. Barnett’s greatest strengths are leadership, risk mitigation, change management and a passion for business transformation. She is known for her expertise in delivering operational excellence and an ability to provide guidance and mitigating risk. Her leadership of ShipHero is grounded in a servant mentality, always doing the right thing for our stakeholders. Her passion for ShipHero comes from the ability to drive operational excellence throughout the organization impacting the lives of our employees, customers, and partners.