Recent developments in the fastener industry have seen a number of distributors moving – generally by acquisition - into manufacture but do the two roles sit well side by side? The answer is ‘yes’ and ‘no’.
‘Yes’ in that while some stockists in the industry have no involvement in manufacturing, others like Forward Industrial - who have manufactured for many decades - believe a manufacturing capability helps them add value to their service.
How? Well firstly it increases your options allowing you to make informed decisions about design and manufacturing capabilities, quality management systems, production timescales and pricing.
Having manufacturing facilities gives a stockist an in-built insurance against the possibility of delays or loss of shipments from overseas. The overseas supply chain can be replicated right here in the UK ensuring the supply line keeps going.
Forward Industrial advocates partnering with stockists to combine the best of that and the manufacturing worlds. This is particularly useful at a time when weaknesses have been developing in the supply chain which have seen a number of fastener manufacturers closing.
However, acquisition of a manufacturing facility, particularly a recent one, does not always bring the same level of benefits. To bring real value to supply-chain relationships, the manufacturing and distribution capabilities need to be fully integrated to benefit the customer.
For any components supplier, particularly in industries like automotive and aerospace, the most cost effective and ideal relationship starts from the ground up, with the supplier having the technical expertise and experience to contribute to the design process.
There is now a trend towards ‘manufacturing distributors’ as more distribution businesses recognise the importance to OEM customers of supply chain security and look to gain competitive edge. But buying expertise doesn’t always make you an expert.
Customers need to dig deeper when exploring what their supply chain partners have to offer to ensure that the full benefits of a manufacturing capability are fully understood and not simply used as window dressing.
What are your thoughts, can these two roles work together in harmony?
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