Member Article

Businesses asked to share views on supply chain

The Electronics Technology Network (ETN) is calling on businesses from across the UK to share their views on the true costs of global supply chains.

The ETN has witnessed some of the factors that impact upon “off-shoring” decisions change back in favour towards UK suppliers, and is now working to assess whether the UK is once more a competitive manufacturing base.

In order to assess this, Ashley Evans, chief executive of the ETN, is asking buyers and suppliers for their views concerning the provision of a service which takes account of the many parameters and factors impacting upon the total landed cost, to enable them to re-assess the total landed cost of their products.

He commented: “Increases in labour rates in China and Eastern Europe, combined with increased freight charges, increasing services costs, costs of quality and inventory, as well as considering the cost of engineering change and IP protection, may make buyers re-consider their sourcing decisions, in favour of a UK manufacturing base.

“Estimating the true landed cost of a product with a complex bill of material and a global supply chain is no simple task.

“Calculating the costs of material and labour (FoB) may not give buyers the true landed cost, and taking account of service, freight, engineering and IP factors may become more significant in the future.”

The ETN will also ask participants about how the UK Government should support a service that tracks the parameters impacting the total landed cost, enabling buyers and suppliers to take consideration of these factors, and to rapidly re-assess their sourcing decisions across the supply chain ensuring they deliver best value for their customers, and a profitable bottom line.

Your organisation, products or services may be part of a complex supply chain, and you may have views as both a buyer and supplier. If this is the case, please feel free to complete both sections of the survey (for Buyer and Supplier).
To complete the survey, please go to http://www.etn-uk.com/sco.aspx

This was posted in Bdaily's Members' News section by Ruth Mitchell .