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Reshoring or Offshoring – The best of Both Worlds

Posted on 27 May 2024

We have seen a noticeable shift in customers wanting to move manufacture back to the UK; but we also know that cost plays a important part in the decision-making process and some components are still way more competitively priced when manufactured offshore.

With access to both UK and Asia manufacture; Chartway can offer you comparative pricing options and production timescales to allow you to make an informed decision on how to proceed with the manufacture of your components.

UK vs Asia – What’s the difference?

Despite the obvious difference in terms of location; the manufacturing processes available are quite similar so in most cases we can quote your components based on both UK and Asia supply.

UK Manufacture

QTY: Typically less than 1000 pieces

Lead Time: Typically 4-5 weeks

UK Services:

  • CNC Turning + Milling
  • Sheet Metal Bending
  • Laser Cutting
  • Fabrication + Assembly
  • In-house welding

Asia Manufacture

QTY: Typically over 1000 pieces

Lead Time: Typically 12-16 weeks

Asia Services:

  • Same as UK plus:
  • Forging
  • Casting
  • Injection Moulding
  • Robot Packaging Options

Hybrid Supply Solution

When lead times are tight, we can often offer a hybrid supply solution, where a small batch of parts is manufactured in the UK on a shorter lead time whilst waiting for the shipments to arrive from Asia.

Although the small batch would cost slightly more, it allows for a much smoother transition in the supply chain so you don’t suddenly run out of parts when you need them most.

Sometimes the cost of an air freight (transit via plane from Asia to the UK, which takes around 1-2 weeks) works out cheaper than UK manufacture so is another option to get the supply of parts expedited.

Case Study – Offshoring – Cost Reduction with Asia Supply:

Title Slide
Case Study: Acrylic Spacers

Offshoring exercise to move the supply of these parts from UK to Asia

Slide
We supply this part to one of our long-standing customers
Acrylic Spacers
Slide
We originally quoted based on UK manufacture with quantities of around 2,000 pieces per order
Acrylic Spacers
Slide
With repeat orders placed, we noticed that the annual volume was in excess of 10,000 pieces
Acrylic Spacers
Slide
The Solution:

By committing to manufacturing the annual volume on call-off basis, we offered a cost down of over 30%!

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