As the sparing continues between our presidential candidates, we hear about domestic job losses in the manufacturing sector of up to 5 million jobs since the year 2000. We also hear about re-shoring of US companies who are re-establishing manufacturing in the USA. USA Today reported back in April 2016 that leading corporates such as Walmart, Ford and Boeing have brought back manufacturing to the USA, creating jobs. Walmart started the re-shoring process back in 2013 where a pledge was made to purchase $250 BILLION of American-made products for its stores by 2023. To date, Walmart has re-shored from China and created 4,838 jobs in the USA. Ford moved its’ manufacturing for F-650 and F-750 trucks from Mexico to Ohio and some from Spain creating about 3200 jobs. Boeing also began their re-shoring plans back in 2014 re-shoring in Missouri, creating about 2700 jobs. Question is what about the SME’s? [small medium size enterprises], who struggle to cope with higher wage rates and rising wages in the USA and cost in doing business?
Tips on how to keep it Made in USA – from our point of view:
At the end of the day the Made in USA brand represents quality and consumers are willing to pay more for the product. As finished products roll off the production line, there are two scenarios, warehouse the product in-house or outsource it to a reputable 3PL partner such as Westset Logistics. If you decide to keep it in-house you have to invest in racking, machinery such as forklifts, packaging, warehouse management systems (WMS), manpower, perform stock takes, deal with pest control, ensure goods are kept in suitable temperature, have enough loading docks for freight companies to pick up for deliveries, senior operations and warehousing personnel, HR costs…..the list goes on and on.
The advantage of working with a 3PL like Westset Logistics is endless. The team at Westset Logistics has fine-tuned various warehousing procedures to save you costs in overhead and procedural matters. The infrastructure is all ready to go, and most of all the systems are created to be customer centric. This includes cloud based warehouse management systems so you can track and view all inventory in real time. Track shipments and get out of managing the dreaded annual stock take. If this were a text book for CEOs and CFO’s the top 6 reasons to outsource and work in partnership with a 3PL is:
1. Save Time and Money
From personnel to computerized systems, there are both soft and hard costs that will be saved, how much depends on the overall value of your product.
2. Network Benefits
Westset Logistics has a network of other logistics providers such as trucking that you will be able to leverage off better cost options and possibly solutions for special projects.
3. Process and Cost Optimization
For every new process applied at Westset Logistics, because the team is focused on Warehousing and Distribution, improvements, efficiencies and overall costs is something everyone can benefit from.
4. Risk Management
Avoid penalties and fines for matters that you simply have no time to learn and understand or even need to know. Focus on your core business and do that well.
Everything is technology driven within a 3PL and Westset Logistics has invested in the right technology to increase efficiencies. Invest in your core business instead of focusing on an area that your business will never be an expert at.
6. Operational Control
Shift the accountability on reporting and management to our team at Westset Logistics. Remove the day-to-day management and focus on key performance indicators that can be easily provided by the team at Westset Logistics.
The savings from outsourcing to a 3PL will empower US manufacturers to continue manufacturing in the USA. The shift in thinking is doing it all yourself. By partnering up with the right and suitable 3PL partner, manufacturers can focus on their core business, which could result in new product development, creating efficiencies on the production line and selling more through a distribution facility that offers endless route to market options.
As both operations grow, jobs are created. We don’t need politicians to work this out for us. Talk to the team at Westset Logistics if you need a 3PL partner that is reliable, honest, an expert at inventory management and most of all customer-centric. This is a family owned business that has grown over the years because of its ability to provide solutions for its customers. Submit your case today for an evaluation right HERE.