FACILITIES MANAGEMENT LOCAL VS GLOBAL
TFC
What is the best approach to supply chain management ?
Britain is the main source of imports for Ireland , making up more than 20 per cent in 2018 and 2019 , despite uncertainty around the UK ’ s departure from the EU , according to the Central Statistics Office . A tumultuous year in 2020 that continues into 2021 means many Irish manufacturers are looking for ways to secure their supply chains by removing risk from their component supply . Here Andrew Barnes , area sales manager for Ireland at TFC , compares working with a local vs global supplier .
Ireland is a manufacturing powerhouse , with more than 32 per cent of its GDP accounted for by manufacturing , compared with the European average of 15 per cent , according to IDA Ireland . However , 2021 has already presented many challenges to Irish manufacturers ’ supply chains . Shortages on supermarket shelves , factories waiting on materials and holdups at borders have put pressure on businesses to reconsider their approach to supply chain management . Naturally , worries about the supply chain are at the forefront of business leader ’ s minds — supply chain hurdles must be overcome for recovery to be successful .
COVID-19 highlighted the importance of the domestic supply chain , particularly for essential medical products like ventilators and personal protective equipment ( PPE ). Considering that Ireland is one of the largest exporters of medical products in Europe , with annual exports exceeding € 12.6 billion , its importance cannot be downplayed — global health depends on Ireland ’ s access to technical components .
CONSIDERING YOUR OPTIONS
One key question to consider when turning to a new supplier is whether to look locally , or globally . There are clear advantages to working with a local supplier with feet on the ground , including local knowledge and the ability to form a close working relationship . On the other hand , you may miss out on the latest technology and the local supplier may not be able to negotiate a bulk-buying discount or meet the minimum order level in the way a global company could . Access to a global market
Members of the TFC team at its Portadown facility
can also help support rapid growth and drive continuous improvement .
When choosing a new partner for supply chain management , what it really comes down to is trust . The stakes are extremely high — stock availability can make or break a manufacturing business , because without a reliable supply of the required components , manufacturers face reputational damage and downtime . On the flipside , overstocking components due to a lack of confidence in their availability brings problems with cash flow and storage .
THE BEST OF BOTH WORLDS
To reap the rewards of both approaches , it might seem plausible to work with a local supplier for some components and a global one for others . However , working with multiple vendors introduces more paperwork — more invoicing , more admin and more work for procurement teams . These soft costs add up , creating a more time consuming , as well as more expensive approach .
One solution is vendor managed inventory ( VMI ), where a single supplier takes responsibility for the procurement and delivery of a broad range of components . VMI also means there is not always a need to choose between the two approaches ; some supply chain businesses can think locally but act globally . TFC , for example , has a global network of suppliers that means it can procure and supply highquality parts . The components are then supplied from domestic depots , minimising the risk of disruption .
Due to growth in demand , we launched a facility in Portadown in 2020 to support customers across Northern Ireland and the Republic of Ireland . Our experienced , onthe-ground team have detailed knowledge of the Irish markets and are backed by implementation teams from different disciplines , who work together to achieve the best result . Importantly , we provide you with a single account manager , who will really get to understand your business and your expectations .
At TFC , we know there is no one size fits all approach to VMI . Our team takes the time to get to know you individually , looking at your unique requirements in terms of material flow , the type and number of parts needed , and building a solution accordingly .
TFC has been a leading supplier of engineering products to Ireland for many years , supporting with design development , high quality components and tailored inventory solutions . For more information , get in touch with Andrew Barnes on abarnes @ tfc . eu . com or call our Portadown office on 028 3881 8301 .
For further information , please visit www . tfc . eu . com
Issue 52 PECM 67