- May 29, 2014
- Posted by: EPP
- Category: Purchasing Help
A cost saving method for plastic machining- without the risk from EPP
American companies in the past have seen Asian outsourcing as a viable solution in regards to purchasing plastic machined parts. However, there is another solution, offered by plastic machining experts EPP Corporation.
The Risks of Outsourcing
When outsourcing to Asia, delivery times often are dramatically slower than from domestic sources. For example, when ordering from EPP, plastic machining orders have a 2-3 week turnaround, with plastic prototypes turned around in a week or less. However, with Asian outsourcing, delivery times often fall in the 10-16 week range on average. Longer transport also leads to a greater chance of damage upon arrival, and if any errors are found with the components, that time frame is of course doubled. As a result, domestic firms are then often contacted to correct errors with the customer paying overtime in order to meet production schedules.
One of the greatest risks for an American company outsourcing plastic machined components to Asia can be copyright and legal protections. These legal protections we cherish in the United States may not exist, or may not be standard to the country where the parts are outsourced. The risk of patents and copyrights being ignored is a serious concern. Providing blueprints, as well as any other information about an existing or upcoming project may put confidential documents in the wrong hands. The danger of unique designs coming into the hands of a competing party is another cause for distress.
By staying domestic, a greater likelihood of establishing an open line of communication exists, with no potential for communication barriers. Often, quality processes are not guaranteed to meet necessary industry standards through outsourcing. The risk that a company without necessary certification manufacturing critical plastic parts is also prevalent when outsourcing. Combining these risk with Asia’s now rising labor costs make staying domestic the most viable solution.
EPP Corporation has a proven solution in order to cut cost, while eliminating unnecessary risk. Our supply chain method takes into account our your estimated annual units (EAU) into one requirement to our raw materials vendors, resulting in us achieving a discount that is passed along to you.
For more information about our proven supply chain method-CLICK HERE