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Top
Seven Added Costs of Offshore Sourcing of Die Castings
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1. Market
Share at Risk
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You may create a
new competitor for your product. The competing product can
be developed using your marketing information, specifications,
and even tooling.
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2. Technology
at Risk
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It's dangerous to
reveal secret technology to an offshore supplier. You may
find your technology shared with your competitors-at home
or abroad.
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3. Miscommunication
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Extra costs are built
in to the process of communicating die design changes and
assuring their proper implementation despite barriers of language,
distance, and culture. |
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4. Long
Lead Times |
Long offshore production
lead times and delays are common. If a company's crystal ball
is cloudy and product demand soars or drops, commitments to
overseas suppliers can't be easily altered. Short-term cancellations
are virtually impossible. |
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5. The Price
of Die Failure
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Low die costs may
be based on uncertified, untreated die steel, with no guarantees
of tooling life-foreshadowing the heavy costs of premature
die failure.
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6. Legal
Liabilities |
The use of uncertified, off-spec alloy often contributes
to the low prices offered by offshore die casters. This factor
can be a time bomb for manufacturers, leading to a high risk
of product failures when such components are incorporated in
products. |
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7. Payment
Sight Unseen |
Because of advance
payment requirements-no ifs, ands, or buts-you have no right
to review shipment quality or quantity before cash changes
hands.
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Here to Learn About Kurt Die Casting Solutions
For more information, call 763-572-1500 or go to www.kurt.com
Email: marketing@kurt.com
Or write to, Kurt Manufacturing 5280 Main Street NE Minneapolis, Minnesota 55421.
Marketing Contact Information;
Paul Carlsen
Kurt Mfg
5280 Main Street NE
Minneapolis MN 55421
Off: 763-572-4429
paulc@kurt.com |
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