Why Diversification Is Important For Manufacturers

Posted by Andrea Wilson on Mar 14, 2023 12:30:00 PM

A mind map showing how diversifying your supply chain connections and networks results in a resilient manufacturing ecosystem.

If there’s one thing that manufacturers should have learned in recent years, it’s to expect the unexpected. Brexit, the global pandemic, and the Ukraine war have caused economic turmoil that has posed major challenges for the manufacturing industry, least not the supply of raw materials and key commodities required for efficient and resilient production supply.

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Supply chains are highly vulnerable to disruption, but they can be incredibly resilient too. 

So, how can manufacturers achieve this? 

Many businesses have rightly identified visibility, efficiency, and workforce reskilling as priorities to reinforce their manufacturing supply chains and increase their flexibility and resilience. In this article, however, we’ll explore the concept of diversification and how it could benefit your manufacturing business.

What Is Supply Chain Diversification?

In supply chain diversification, manufacturers extend their network of suppliers so they have more choice and flexibility, thereby making them more responsive and resilient when market conditions change.

Supply chain diversification can take many forms, including:

  • A wider network of suppliers so there is more product and price choice when ordering components or services.

  • A broader geographical spread to overcome localised supply issues.

  • Access to specialist machining skillsets that can withstand the impact of a supplier going offline.

What Are The Benefits Of Supply Chain Diversification?

The bottom line with the diversification of the supply chain is risk mitigation. Today’s fast-paced business environment poses numerous, often unforeseen, challenges for manufacturers, particularly small and middle-size enterprises (SMEs) who do not have vast financial resources with which to futureproof themselves.

By diversifying their supply chains, manufacturing SMEs can:

  • Develop more flexible and agile processes to enable them to respond quickly when changes occur.

  • Encourage innovation by establishing positive relationships with new suppliers who play a more involved role in fulfilling their needs.

  • Reduce backorders and ensure demand can be met when shortages occur.

  • Forge relationships with customers on a local level by offering competitive prices.

  • Save money by reducing waste, cutting shipping fees, and sourcing cheaper prices.

How Hone-All Can Support Your Supplier Diversification Strategy

As experts in precision machining, we offer our customers reliable outsourced deep hole drilling, deep hole boring, turning, and honing, helping them to achieve optimum efficiency, productivity, and costs.

By choosing us as a trusted supplier as part of your diversification strategy, you can protect your business against the challenges of changing market conditions.

Our machining is carried out in-house in our dedicated facility with no reliance on outsourcing precision machining services which, combined with our network of approved suppliers, enables us to deliver consistent quality and excellent levels of service that meets and exceeds our customers’ expectations and deadlines.

Contact Us To Find Out More

To find out more about our precision machining services, or to request a free, no-obligation quotation, please call Hone-All on 01525 370666.

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Topics: manufacturing, Supply Chain UK

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