By Glacial Wood / February 28, 2017

Start Seeing These Unseen Costs from Material Suppliers [INFOGRAPHIC]

Your material suppliers perform an integral part in the supply chain. By supplying the materials your company uses to complete their work, you come to depend on them. It’s worth remembering, though, that the processes and decisions of your material suppliers ultimately affect your bottom line, too. 


In the infographic below, I’ve broken down some of the unseen costs material suppliers pass along to the companies who procure their parts. 

One of the most valuable assets in most companies is time. Depending on the structure of your supply chain, order turn times can be efficient and cost-effective, or they can be cumbersome and inconsistent. As you saw, there’s a significant difference in order turn times when you’re sourcing parts from overseas versus when you’re sourcing parts from the continental United States. 

As the popularity of sourcing supplies from overseas grows, so do the problems currently plaguing international shipping. While overseas manufacturing has its own hangups, the focus here is on getting the materials where they need to be. 


The further your materials travel, the more times they are loaded and unloaded. Every time this occurs, there are added opportunities for damage. Well-packaged materials will fare better, but the opportunity for damage remains. Damaged product affects your material variance, lowering your profits and potentially holding up your finished product. 

While all of these things might not happen every order or every shipment, the opportunity is there. And in a business where consistency is king, the fewer opportunities like those listed above, the better. 


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