Long transport routes, fluctuating freight costs and lead times of several weeks are prompting many purchasing departments to reassess how they source plastic components. Global sourcing can be economically attractive for suitable products under stable conditions. At the same time, transport routes, inventory costs, response times, quality risks and supply chain flexibility have a considerable influence on actual total costs.
Comparing only the quoted part price is therefore not enough when choosing between a distant and a regional manufacturing partner. What matters is the total cost of ownership of each alternative.
A note on terminology: nearshoring usually refers to relocation to geographically nearby countries. Production in one’s own country is therefore not automatically nearshoring – regionalising supply chains is the more precise description.
The key points at a glance
- Total cost instead of quoted price. Alongside the part price, transport, customs, packaging, inventory, tied-up capital, quality costs, coordination effort and potential supply failures should be considered.
- Lead time and flexibility. Shorter transport routes can reduce response times and make short-notice adjustments easier. How large the advantage is depends on the specific supply model.
- Quality and communication. Physical proximity can simplify coordination, sampling, mould corrections and problem solving. On its own, however, it is not proof of quality.
- Reusing existing moulds. When changing supplier, an existing mould can in principle be assessed for further use at another manufacturer.
- Decide by risk profile. The more volatile the demand, the higher the quality requirements and the more important short response times, the more the advantages of regional sourcing weigh.
Why the part price alone does not decide
A meaningful supplier comparison should go beyond the pure part price. Factors to consider include transport and logistics costs, customs and administrative costs, packaging, required safety stock, storage space and tied-up capital, minimum order quantities, scrap and rework, complaint handling, mould service and changes, communication and coordination effort, and the cost of potential supply interruptions.
Only once these factors have been assessed can it be determined which sourcing alternative is more economical. A blanket statement that additional costs frequently offset the lower part price of Asian sourcing would not be reliable without project-specific data.
Comparing total costs reliably
Comparing two quotations only becomes meaningful when both sides contain the same items. In practice it helps to consider costs over a defined period – say one year – and to allocate all items to the quantity actually required:
- Part price times annual volume as the starting figure
- Transport and customs per shipment, extrapolated to the delivery frequency
- Tied-up capital in the safety stock that the lead time makes necessary
- Storage space for that stock
- Quality costs: scrap, rework, complaint handling
- Change effort: what does a mould modification cost, and how long does it take?
- Risk cost: what does a production stoppage cost per day?
The last item is the most uncomfortable because it is hard to estimate – but it frequently decides the comparison. Setting it to zero means comparing part prices, not sourcing routes.
Supply security as a strategic factor
Long and complex supply chains often require larger buffers in both time and quantity. Regional supply chains can enable shorter response paths. That does not automatically mean regional manufacturing is always superior. With stable call-off volumes, few variants, a low rate of change and strongly price-driven products, global sourcing can remain economically sensible.
With volatile volumes, frequent changes, high quality requirements or high costs of a production stoppage, the supplier’s responsiveness gains importance. This applies particularly in regulated sectors such as the automotive industry or electrical engineering, where approval processes and documentation requirements structure any change.
Mould transfer when changing supplier
Changing supplier does not necessarily mean an existing mould has to be replaced. The following points should be clarified before relocation:
- Ownership and rights of disposal: who owns the mould, and are there contractual restrictions?
- Mould condition: what wear is present on cavities, slides, ejectors, guide elements and temperature control?
- Machine compatibility: do mould dimensions, clamping, media connections, ejector system and any hot runner technology suit the intended machine park?
- Documentation: are drawings, parts lists, spare part information, process parameters and previous change statuses available?
- Sampling and release: which customer requirements apply to renewed sampling and release?
- Transition planning: how is supply secured during relocation, sampling and release?
The change itself is a project
Even if the calculation favours the new manufacturer, the transition has to be planned. Between the last delivery from the previous partner and the first released delivery from the new one lie mould transport, refurbishment, running-in, sampling and release. This period is bridged by a safety stock that must be built up in advance.
Planning the change without that buffer means exchanging one supply risk for another. Transition planning therefore belongs to the decision, not to its implementation.
Frequently asked questions
What does nearshoring mean in plastic injection moulding?
Nearshoring describes relocating production to geographically nearby countries. Production within one’s own country does not strictly fall under it – regionalising supply chains is the more precise term. In both cases the aim is to shorten transport routes and response times.
Is regional manufacturing always more expensive?
Often in the part price, not necessarily in total cost. Transport, customs, safety stock, tied-up capital, quality costs and coordination effort belong in the calculation. Whether the change pays off can only be answered with project-specific data.
Can I have my existing mould relocated?
In principle yes. Ownership and contractual restrictions, mould condition, compatibility with the new manufacturer’s machine park and the available documentation need clarifying beforehand. Sampling and series release follow.
How long does a mould relocation take?
This depends on mould condition, refurbishment needs and the release documents required. In addition to transport and running-in, sampling and release take time. A transition plan securing supply during relocation is essential.
When does global sourcing remain sensible?
With stable call-off volumes, few variants, a low rate of change and strongly price-driven products. The more volatile the demand and the higher the cost of a supply failure, the more short response paths weigh in the balance.
Conclusion: compare the whole system, not the part price
Whether regional manufacturing is more economical than a distant source cannot be answered in general terms. Part price, logistics costs, inventory, quality, change effort, responsiveness and supply risk decide as a system.
Schröder + Heidler takes over existing injection moulds, assesses their condition and technical compatibility, carries out any necessary work in our own mould making department and transfers suitable moulds into series production after sampling and release. Talk to us about taking over your mould.