10 Things to Tell Your OEM
Fighting for business from low-cost competitors? Make your customer aware of these issues.
I love lists. I write them to remind myself about things I need to do every day. Sometimes on paper, sometimes on my computer or one of the other electronic devices I use regularly.
I also like when processors think creatively about ways to preserve and increase their business. My two “likes” came together recently when I received a blog from The Rodon Group, a custom and proprietary injection molder based in Hatfield, Pa., that pointed me to a page on its website with a five-page white paper the firm had authored.
This white paper was titled The Top 10 Critical Reasons to Bring Your Plastics Molding Back to the U.S. It is intended to be used by processors as talking points with OEM clients that are thinking of shipping molding projects elsewhere. Rodon give us permission to share these tips with you. Here is a summary:
1. Product quality risks: Product quality issues continue to dominate the foreign supply chain, particularly with China. In 2012, the Consumer Product Safety Commission sought the recall of 177 products imported from China.
2. Overseas costs and lead time: Utilizing injection molders that are close to home can shorten the project delivery schedule by at least two months.
3. Price volatility: A recent study by Gartner Research indicated price volatility was one of the top concerns of U.S. companies when dealing with Chinese manufacturers. Most would opt for price stability over lower costs.
4. Intellectual property protection: It is estimated that between 15% and 20% of all products made in China are counterfeits. In fact, 70% of all counterfeit products seized globally originated in China. This theft of intellectual property resulted in the loss of 2.1 million American jobs and as much as $300 billion in revenue.
5. Communication and production scheduling: Having their molder close by allows OEMs to collaborate easily on design and product refinements. This helps guarantee that the OEM gets products that are made exactly to its specifications.
6. Sustainable manufacturing and environmental stewardship: Molders who care about the environment employ state-of-the-art machinery to assist in minimizing waste, transportation, and packaging costs. A well-made, well-designed mold reduces the energy needed to produce a part.
7. Waste-reduction strategies: A great deal of waste can be generated during injection molding. That’s why it’s important to make sure the company you work with is minimizing waste. Cardboard boxes are one source of waste. Efforts at cardboard recycling make a big difference. Packaging can be minimized in the delivery phase.
8. Higher productivity and efficiency: U.S. manufacturers have the most productive workers in the world—far surpassing the worker productivity of any other major manufacturing economy, leading to higher wages and living standards.
9. Adherence to international standards: ISO 9001 certification is a way for companies to keep a close eye on their production processes. Meeting the international standards for quality management ensures that the company has been thoroughly audited and is fully in control of its procedures, and that no part of the production process will “slip through the cracks.”
10. Buying American made is more important than ever: More than 12 million Americans get their paychecks from working in manufacturing. Stimulating manufacturing here at home will not only save jobs and increase the pool of opportunities, but it is also the best way to get to a sustainable economic recovery and secure our independence.
This is just a summary culled from the Rodon white paper. Email email@example.com for the full report. And think about figuring out a way to use it.