One of the biggest challenges global OEMs face is developing a dependable global supply chain with local manufacturing, local inventory and on demand technical support anywhere in the world. Rising fuel prices, long international transit times and costs, and unique regulatory requirements from various countries create a strong argument for supply base globalization.
A key consideration for OEMs is selecting a proven, validated global supplier that already has an existing strong presence in regions where they operate. Working with a global supplier has many benefits, including vendor consolidation and part number reduction across regional pillars, which can help reduce costs, while increasing productivity and efficiency.
For Off-Highway equipment OEMs in particular, developing a dependable global supply chain with local support is critical in the design and manufacture of a consistent, high-quality product. Having manufacturing, parts distribution, engineering and customer support and sales account managers to support OEMs where they do business is crucial to their continued success in the market.
Off-Highway equipment OEMs can build a dependable supply chain and meet customer expectations by choosing a reliable, validated supplier with:
- Existing presence in global markets
- On demand engineering and technical support
- Manufacturing facilities located across the globe
- Localized inventory and account management services
To learn more about how choosing a global supplier can benefit your organization, download Southco’s Global Supply Chain Solutions Video.