What to Consider When Sourcing Industrial Materials for Manufacturing Operations

Sourcing industrial materials is not always about getting the best price. It is a matter of finding the proper balance between quality, reliability, and fit of operation.

The thing is, the goods you introduce in your factory, be it chemicals, packaging supplies, metals, or agricultural inputs, will affect everything. That includes production uptime and final product performance. These are some of the key points to consider before placing your next order.

The Consistency of the Material

When your materials aren't the same from batch to batch, even slightly, it can mess up your processes. For instance, a slight variation in paper weight or quality of resin can cause slowdowns, rework or even recalls of the line.

Search for materials with tight tolerances and predictable performance. And in case your line is sensitive, ask your supplier to give you specifications and consistency assurances. Even the slightest variations in industrial materials for factory use can have a knock-on effect on large-scale productions.

Logistics and Lead Times

In the current supply chain environment, long or unreliable lead times are as detrimental as poor material quality. Before you make a final decision on a supplier, take into consideration:

• What is their delivery speed?
• Are they domestically stocking or importing?
• Are they providing buffer stock or JIT (just-in-time)?

Always consider lead time variability in planning, particularly on imported or specialty material. Plan to have buffers of key items in case of a possibility of delivery backlog or local obstructions.

Certifications and Compliance

The standards are stringent in various industries. Purchasing materials that are ISO, REACH, RoHS, or some other certification is paramount. It implies that you are certified and boosts your credibility with clients.

Request documentation in advance and verify that the valid certifications are current and relevant to your application. Omitting this process can save some time at first, but it can cause significant delays further up the production or regulatory process.

Compare Local vs. Global Sourcing

Global sourcing may have better prices. However, it can also be complex. Money volatility, geopolitical threats, and extended transportation may be stressful. Local sourcing, on the other hand, can lead to minimal turnaround and effortless communication, however, at a greater price.

So, what’s the optimal solution? This will depend on your industry, product life cycle, and the effect delays may have on your operations. Some manufacturers employ a combination of the two to diversify the risk.

Total Cost and Not Unit Price

It is tempting to think of comparing suppliers on price per unit, but do not forget to also look into:

• Transport and delivery costs
• Lost time due to irregular supply
• Scrap or material wastage rates
• Integration with any of your processes.

A material that is slightly more expensive can sometimes save you money because it performs better, lasts longer, or requires less rework.

The Takeaway

Industrial material sourcing is not a simple procurement activity. It is a decision that has a wide-reaching impact on your operation. Invest the time to assess reliability, consistency, compliance, and overall cost of industrial materials. This will result in a smoother production process, better supplier relations, and reliable long-term performance.