Product and component sourcing can be extremely challenging when looking for the right quality, price and processing. Achieving a good level of all three factors is essential to running a successful and efficient supply chain. So, what is a sustainable supply chain and how can you ensure supply chain due diligence? Keep reading as Hitaltech explains the benefits of European sourcing.
What is a sustainable supply chain?
A sustainable supply chain involves eco-friendly measures, transparency and the reuse of products and components. An eco-friendly supply chain involves integrating environmentally responsible principles. These can include using sustainable products and materials as well as all parts of the supply chain playing their part in recycling and adhering to green, sustainable measures in everything they do.
In terms of transparency within a supply chain, this refers to the ability and willingness of a business to openly disclose information about goods and practices. Lots of companies establish and maintain ethical practices in terms of communication down the supply chain. This can include when there are issues with the processing and delivery of an order. With clear transparency on a sustainable supply chain, these delays would be communicated.
A circular supply chain refers to products which, at the end of their working lives, are disassembled or reduced to their raw materials and remade into sellable products, creating a sustainable supply chain.
Supply chain due diligence
Supply chain due diligence involves accounting for the potential risk of encountering issues somewhere along the chain. This means a company that’s searching for a supplier must perform enough risk management to ensure they can be sure that there will be no issues in the supply chain.
Risk management and supply chain due diligence involves a wide range of factors, including scrutinising the quality of the product, the time it can take to receive the goods, the price and more. Many companies may also want assurances over the sustainability of goods, and information on what happens in case of a delay or an issue with an order.
Supply chain due diligence is important for ensuring the success of your business. Failure to do so can lead to a delay in components and products, which can then affect profit margins and your own supply chain to customers and clients.
What are the advantages of European sourcing?
Due to the Covid-19 pandemic, prices for product sourcing from East Asia have risen, so many companies have had to re-evaluate their processes and costs. Additionally, recent global events have demonstrated the value of sourcing products closer to home.
Made-in-Europe products have plenty of benefits for companies in the UK. So, what are the advantages of European sourcing?
- Low cost & high quality
- Ethics
- Closer to home
<h3>Low cost & high quality</h3>
Due to rising production costs in Asia, many companies have looked towards Europe for their supply. With shorter lead times, low import duties, lower transportation costs and, in numerous instances, higher quality products, it’s no surprise to see so many businesses change their supply chain back to Europe.
Ethics
As the world has discovered more about human rights violations in China and elsewhere, companies which place safety, ethics and human rights among their values are looking elsewhere for supply partners.
With suppliers in Europe abiding by EU laws regarding work and human rights, it’s clear to see why businesses have moved their business to Europe.
Closer to home
The final advantage of European sourcing is how close to home it is for UK companies. A trip to Asia to visit a manufacturer takes a lot of time out of a busy schedule. If a supplier is in France, for example, it’s much easier for companies to make a visit to check on the supply chain.
Hitaltech’s European manufactured products
At Hitaltech, you can find a wide range of made-in-Europe products that you can put your trust in. We offer enclosures, terminal blocks, flexible interconnect systems, building automation components and much more.
We pride ourselves in manufacturing and supplying high-quality products and value added services across the board. To read more about our services and the work we’ve done in the past with businesses like yours, pay a visit to our Hitaltech case studies.
For anything else, please feel free to contact us on +44 (0) 1253 899910 or email us at uksales@hitaltech.co.uk
