Consider the Risks Before Reshoring
Guest contributor: Steven Healings
Group Supply Chain Director, eXception Group
Due to the recent trend in off-shoring and outsourcing, left in its wake are the skills and knowledge gaps that many industries face as jobs have been lost to lower cost overseas suppliers.
With this in mind, consideration needs to be given when bringing production back to the UK, that the supplier selected can meet the needs of your business, has the skill in its workforce and the processes that will allow it to fulfill demand.
A robust assessment is needed to ensure the supplier will be able to manage any forthcoming product and knowledge transfer, particularly when the off-shore supplier may be less than co-operative. A clear transfer methodology must be deployed.
SEE RELATED STORIES FROM THE WDM CONTENT NETWORK:
Agree on the risks to a transfer program with the new supplier and put in place contingency plans to ensure a successful transfer. In any process that involves the change of a key supplier, planning the cut-over and ensuring continuity of supply for end customers is an essential part of managing the risk.
This can be achieved by building up inventories to cover the transfer period (key equipment may need to be re-located) or parallel production. Which ever methodology is adopted a risk register should be a key element of the transfer toolbox.
Contractual and commercial aspects should be carefully considered, including reactions of the incumbent supplier when notified of the change.
You should consider if new approvals are required for a change in manufacturer, and if so how long will the process take, and how much will it cost?
Re-shoring needs strategic thought, it’s very easy to change tactic quickly in reaction to changing events, but the long term view needs to be considered if the move is to be successful.
The risks in re-shoring are often as great, if not greater than the risk associated with off-shoring. Businesses should not under-estimate the time, effort and resources that will be needed to successfully manage a major re-shoring operation.
Steven Healings is a Chartered Engineer and member of IET, CILT and CIPS. He has over 20 years experience in supply chain, operations and project management within the high-tech sector. This included responsibility for major cost reduction programs, outsourcing projects and delivering complex supply chain solutions to blue chip customers. Steven has been with eXception since 2007.
The Ultimate Procurement & Supply Chain Event
From September 28th-30th, network with C-level executives, gain insight from industry pioneers and walk away with actionable insights that accelerate your career. By the end of the week, we promise you’ll have the skills to solve the world’s most pressing supply chain and procurement challenges.
The three-day show is an essential deep dive into the industry, with influential speakers sharing insights and strategies from their organisations, group roundtable discussions, and fireside chats. Whether you attend virtually or in person, you’ll strategise how to cope with global disruption, learn from industry leaders, and walk away with tips, tactics, and tangible connections.
How to Attend
In a COVID-disrupted era, we know that the majority of people would rather avoid travelling for events─why take the risk, right? In response to the continued disruption, BizClik Media Group has decided that Procurement & Supply Chain LIVE will offer the best of both worlds through hybrid accessibility.
That means you and your peers can attend the event in person or virtually ─ with no disadvantages for people who choose not to make the trip to the Tobacco Dock venue.
Procurement & Supply Chain LIVE will be held at the Tobacco Dock in London, an industry-leading venue that is renowned for delivering world-class events. For attendees’ peace of mind, the venue is working to the government-endorsed AEV All Secure Framework, alongside mia’s AIM Secure and ‘Good to Go’ accreditation, they will ensure that we achieve a COVID-secure environment to facilitate all of your networking needs.
Our physical venue is both historic and stunning, but it has no bearing on the information that you and your peers can gain from the event. You can still absorb it all, interact with other attendees, and enjoy the conference experience on your alternative, virtual platform.
The platform will feature live feeds from all of the stages, as well as virtual networking areas. So, if you want to avoid travel, it’s not a problem! You can still get involved and enjoy the entire experience from the comfort of your own home.
What’s on the agenda?
With keynote addresses from global leaders, dynamic roundtable discussions, and extensive networking opportunities, Procurement & Supply Chain 2021 will expand your network, deliver insight, and enhance your organisation’s reach.
Across the three-day event, a number of relevant topics and trends surrounding procurement and supply chain will be discussed.
- Tuesday 28 September - Digital supply chain
- Procurement strategy (11:30 am)
- Supply chain leaders forum (12:00 pm)
- Women in supply chain (14:00 pm)
- Procurement technology (14:30 pm)
- Wednesday 29 September - Procurement consulting
- Sustainability (11:30 am)
- Supply chain management (12:00 pm)
- Digitalisation (14:00 pm)
- Risk & Resilience (14:30 pm)
- Thursday 30 September - APAC sessions (04:00 am)
Influential executives from around the world will give their insights and professional experiences surrounding these topics, allowing you and your company to leave with valuable information.
The past year has shown how important supply chains are and the importance of managing them correctly. With increasing digitalisation across all industries, you won’t want to miss out on our great speakers and information surrounding this topic. Preparing your company for the future is key, and we are sure you will gain great insights at our three-day event.
Order now to make the most of our early-bird offer. Ticket prices increase over 50% soon! For tickets and information, head over to our event site.