Local Source of Supply – A Key to the Brexit Future?

With our HQ based in Sussex, TFC Europe Ltd is one of the leading suppliers of technical fastener components to industry. We have an unrivalled reputation for delivering innovative products, flexible supply chain solutions, and exemplary service, to help our customers achieve breakthroughs in product development and new standards of manufacturing efficiency. It™s no secret that many of today™s businesses maintain global supply chains. However, with a UK Brexit imminent, what may be a secret is just how much procurement professionals would prefer to source locally instead.

According to a recent buyer survey conducted by THOMASNET, it was found that 72 percent of buyers “always or generally” prefer to source locally. In comparison, just 11 percent of respondents “always or generally” prefer to source globally. In fact, nearly half of suppliers actually “rarely or never” prefer to source globally at all.
At first site the term ‘local’ may be defined simply in terms of geographical distance, but the issue is not quite that straightforward For example, whilst a supplier located a couple of miles away is clearly local, how far do we have to go before the term ‘local’ ceases to be valid? We might also consider the ease of contacting the supplier as a factor, so to the basic criterion of distance we might add ‘time taken’. As an example the time taken to meet with a supplier 10 miles up a congested motorway can often take longer than the time taken to travel 60 miles on less congested roads. Clearly, most buyers prefer to keep the supply chain as close to home as possible. Here™s why:

More Reactive
You never know when an opportunity will strike or a challenge will arise. For instance, you can receive a highly lucrative bid from a major customer, or an existing client may need you to ramp up in order to meet demand. Will you be ready?
If you source locally, the answer will probably be yes. That™s because local suppliers are typically more reactive than suppliers who are further away. They are able to deliver products quicker, and it is much easier for a supplier to coordinate a shipment across the neighbourhood than around the world.

Greater Control
The further away you are from elements of your supply chain, the less control you have over them. Suppliers may say that they treat all of their customers and purchase orders the same, but if they anticipate a site visit or a drop-in meeting from you, the chances are they will keep you top of mind. Face-to-face visits will allow you to address any concerns and ensure all products meet your standards.
There™s also less chance of things being lost in translation, which often occurs when working with far-flung teams of people, many of whom aren™t actually on the floor and touching your products. Many of these costs can be reduced by localising your supply chain. And, with less money being sunk into logistics, there will be less weighing down your bottom line. With shorter supply chains, greater certainty and predictability of delivery times is much enhanced and this is particularly attractive to companies operating on a JIT basis.

Better For Business
Local sourcing doesn™t just help save money; it can also help you generate more of it. That™s because companies in your area may be impressed by your efforts to keep a tight and fast-paced supply chain, which can help you attract new customers.

TFC Europe Ltd is one of the leading suppliers of technical fastener components to industry, with an unrivalled reputation for delivering innovative products, flexible stock management solutions, and exemplary service, to help our customers achieve breakthroughs in product development and new standards of manufacturing efficiency.
With six locations spread throughout the UK, TFC can support customers’ products and supply chain needs, wherever they are based, bringing together the personal relationship of a local supplier.

Please view our product ranges and stock management services (DLF/VMI/Kanban) here.