In recent years, the global manufacturing landscape has witnessed a significant shift. The pandemic-induced disruptions, geopolitical tensions, and quest for supply chain resilience have prompted manufacturers to reconsider their production strategies. One such strategy gaining prominence is?reshoring—bringing production back to local shores. In this article, we delve into the impact of reshoring on?Overall Equipment Effectiveness (OEE)?and explore how local production can enhance agility while mitigating supply chain risks.
Reshoring involves relocating manufacturing operations from offshore locations (often low-cost countries) back to the home country or nearby regions. While cost considerations initially drove offshoring, several factors are now driving the reshoring movement:
- Supply Chain Disruptions: The pandemic exposed vulnerabilities in global supply chains. Manufacturers faced delays, shortages, and logistical challenges. Reshoring allows companies to reduce dependence on distant suppliers and regain control over critical components.
- Quality and Intellectual Property: Reshoring ensures better quality control and protection of intellectual property. Proximity to production facilities facilitates real-time quality checks and faster response to defects.
- Agility and Responsiveness: Local production enables rapid adjustments to market demands. Shorter lead times and reduced transportation distances enhance agility, allowing manufacturers to respond swiftly to changing customer preferences.
- Downtime Reduction: Reshoring minimises transit times and customs delays. Equipment uptime improves, positively impacting availability metrics. Reduced reliance on distant suppliers also reduces the risk of sudden part shortages.
- Maintenance Efficiency: Local production simplifies maintenance scheduling. Technicians can promptly address equipment issues, leading to shorter maintenance windows.
- Production Speed: Proximity to production lines allows for faster changeovers and adjustments. Reshoring streamlines processes, resulting in improved performance metrics.
- Skill Enhancement: Local workers receive targeted training to enhance their skills. Skilled operators contribute to higher equipment performance.
- Real-time Monitoring: Reshoring facilitates real-time monitoring of production processes. Quality deviations are detected early, reducing defects and rework.
- Supplier Collaboration: Closer collaboration with local suppliers ensures consistent material quality. Manufacturers can work closely with suppliers to maintain high standards.
- Agility through Proximity: Local production enables just-in-time manufacturing. Manufacturers can quickly adapt to demand fluctuations, seasonal trends, and unforeseen events.
- Reduced Supply Chain Risks: Reshoring minimises exposure to geopolitical risks, natural disasters, and transportation disruptions. Companies can diversify suppliers while maintaining proximity.
