Every custom rubber and plastic part is an investment in your product’s performance and your company’s reputation. Deciding where your parts are made plays a major role in maintaining a reliable supply chain.
When choosing between domestic and offshore international manufacturers, the goal isn’t to “pick a side.” Your target is to build a supply plan that fits your needs and gives you options when conditions change. Below, we break down the different factors that affect which option is best for your parts.
Key Criteria for Global vs. Domestic Part Sourcing
Part Costs
It’s no secret that cost is often the top consideration when comparing sourcing options. However, determining the most cost-effective part solution is rarely simple. There are several factors that impact the overall cost of your custom parts:
- Labor and Production Costs: Overseas manufacturers, particularly in Southeast Asia, often have significantly lower labor wages and operating costs than U.S. producers. However, it’s important to vet each manufacturer for quality to reduce part issues regardless of location.
- Secondary Costs: While offshore unit prices can be intriguing, those numbers can be misleading. Offshore sourcing includes other expenses that chip away at the initial cost savings from overseas labor, such as international shipping, customs duties, import tariffs, brokers’ fees, and insurance.
- Minimum Order Quantities (MOQs): Both global and domestic manufacturers can set high MOQs, with overseas companies often requiring high volumes. If your demand doesn’t meet those volumes, you might still be forced to purchase in bulk to hit their price break.
The Bottom Line: Examine the total landed cost of your parts, not the per-unit price. Domestic sourcing will almost always carry a higher sticker price due to higher wages and regulations, but it can avoid many add-on costs and costly disruptions. Try and account for the complete picture to determine which price points are a better fit for your projects.
Lead Time
How long it takes to get your parts, and the logistics effort required, can be just as critical as the initial part costs. AS they say, time is money, and lengthy supply lines can introduce unwanted risks and other challenges. Here’s how offshore vs. local sourcing stack up on lead times and supply chain logistics:
- Production & Shipping Times: The farther the distance, the longer the lead times. Offshore manufacturers can have lead times of 15-20 weeks, compared to 4-8 weeks for some domestic sources.
- Logistics Complexity and Risk of Delays: Global supply chains are much more complex and have many more potential failure points. Parts need to travel long distances, pass through ports, and require other handoffs that can be delayed by everything from minor issues to major events like the Suez Canal blockage.
- Inventory Pipeline and Safety Stock: Long transit times can lead to more inventory stuck on a boat, sitting in customs, or somewhere else that isn’t immediately accessible. To avoid running out, companies typically keep higher safety stock or have domestic sources ready for short-term needs.
The Bottom Line: Offshore sourcing inherently means longer lead times and more complex logistics, which can be managed with careful planning. Domestic sourcing offers quicker, simpler lead times due to distance and fewer shipping hurdles. Many manufacturers strike a balance by using domestic suppliers for fast-turn or backup supply, even if their primary source is overseas.
Capabilities and Flexibility
Beyond cost and time, there’s a more nuanced but crucial factor in sourcing custom parts: supplier flexibility and support. The right sourcing solution often comes down to which options can address your specific needs, whether that’s a domestic solution or an international resource. Those factors include:
- Manufacturing Capabilities: Specific manufacturing needs may steer you toward a specific option. For example, global sourcing can give you access to capabilities and expertise that might be scarce domestically.
- Inventory Flexibility: Local sources can offer you more flexibility for managing inventory, such as warehousing and just-in-time delivery options that aren’t quite as easy to manage with international parts.
- Communication and Support: Time zone differences and language barriers with overseas manufacturers can add communications challenges, especially when dealing with urgent issues.
The Bottom Line: Quality and manufacturing capabilities are not a binary global vs. domestic question. Instead of basing your choice purely on location, find a selection of sourcing solutions that meet all your requirements and then navigate the differences between international and domestic from there.
How Timco Crafts a Sourcing Strategy That Fits You
Deciding between global and domestic sourcing for custom parts is not a one-size-fits-all proposition. Both offshore and domestic sourcing solutions offer distinct advantages and disadvantages that can be viable depending on your specific needs. The biggest challenge is often finding the right custom parts supplier to uncover the best sourcing solution for your business.
At Timco, we don’t just sell custom parts. We work as an extension of your team to solve sourcing challenges and improve your supply chain efficiency. We don’t shoehorn you into a specific solution. Instead, we offer a variety of features that help you invest in the best, most cost-effective sourcing solution available:
- A global network of partners with comprehensive capabilities both inside the U.S. and out.
- Tailored sourcing recommendations that give you multiple options, whether it’s an offshore, domestic, or hybrid approach.
- Proactive recommendations based on changing needs, including dual sources, material alternatives, or some other creative supply chain possibility.
- Consistent quality standards across all locations, regardless of location.
- Ongoing flexibility allows you to shift production as needed.
Ready to solve your sourcing challenges for custom rubber and plastic parts? Timco partners with businesses ranging from Fortune 500 companies to small enterprises and can help your organization invest the quality parts and service you deserve. Give us a call at 800-969-6242 or contact us online to get a quick, tailored quote for your applications.
Are sourcing challenges disrupting your business? Download our Guide to Overcoming 6 Critical Challenges.
