Maion Business Solutions Publishes Case Study on the Hidden Costs of Overseas Supply Chains + How Repatriating Can Save Businesses Money

Crestview, FL, June 08, 2020 --(PR.com)-- Adam Hallet, Co-Founder of Maion Business Solutions, has completed a case study comparing the costs of a Chinese vs. a U.S.-based manufacturer that shows there are more hidden costs than ever in doing business with a non-USA-based supply chain. The case study showed that costs were actually 64% higher with the Chinese source.

Maion priced out how much it costs to get one pallet of 7-inch, 50 lb. class cable ties to a distributor warehouse in Indiana from both the U.S. and Chinese companies. They found that the total cost was $2208 if ordered from the U.S. manufacturer and $3618 if ordered from China. Even though the product list cost was cheaper from the Chinese company, there were multiple hidden costs that resulted in the final price being much higher. These included:

--Freight (ocean and land)
--Duties
--Tariffs
--Cash costs (due 14 weeks prior to delivery for the Chinese order vs. 30 days post-delivery and invoice for the U.S.)
--Inventory costs (of carrying 20 weeks’ worth of inventory vs. 3 weeks: due to overseas lead time and business practices, companies must order enough product to meet demand for a substantial period, and must order it many weeks in advance. They need ready labor to take inventory and enough space to store large amounts. And any mismatch between the order and actual customer demand is a direct hit to their bottom line.)

As this study shows, products coming over via ocean container have extra shipping and import-related costs that quickly erase any topline product price advantages. There’s also the opportunity cost associated with having to pay cash up front so far in advance, and increased inventory costs - not to mention decreased inventory turns and a significantly higher order-to-delivered cycle time (12-14 weeks vs. 2-5 business days). And this is assuming the products delivered are correct. Businesses have no way to check that until delivery; if products don’t meet standards, it’s difficult and time-consuming to get credits processed and replacements delivered - resulting in additional costs.

“The evidence is clear - there are multiple advantages to bringing supply chains back home. Not only is it best for the business, it will also boost the American economy at a crucial time and add much-needed jobs for U.S. workers,” said Maion Co-Founder Adam Hallet. “Maion Business Solutions has assembled an experienced team of repatriation experts to help U.S. companies bring operations home and transform supply chains to be competitive now and for the foreseeable future. We will guide them through the process of repatriating, resulting in significant cost savings plus many more benefits, including less material movement and decreased inventory turn times, less inventory, less waste and rework, better quality control, higher skilled workers with increased longevity, better workplace safety, a better standard of living for employees, more flexibility to adapt to changing customer demands, and increased customer satisfaction.”

Adam Hallet is a business transformation expert who has more than 20 years of quality, business transformation, and business performance improvement leadership in both financial services and manufacturing. He has experience across several industries, including financial services and healthcare. While at ING Retirement Services, Hallet was a Vice President and Master Black Belt responsible for the deployment of Lean Six Sigma, built continuous improvement team from zero employees to over 40 professionals and delivered over $100M in benefits over five years (5 times their cost). Prior to his work at ING, Hallet realized nearly $25M in organizational savings in only 2 years at the Hartford Insurance Company. He was the recipient of The Hartford’s Chairman Award in 2012 for his team’s transformational work.

Maion Business Solutions offers a variety of services which can be customized, including supply chain current state analysis; current risks and gaps identification; financial assessment current vs. future; recommendations for future supply chain; comprehensive repatriation assessment, highlighting current risks, gaps, and recommendations for future state; assisting in or leading repatriation transition process; incremental supply chain improvements; supply chain transformation utilizing Lean Design with a dedicated team; leading and implementing full-scale repatriation; end-to-end supply chain assessment and transformational redesign; and management system implementations to ensure sustainability.

For more information about Maion Business Solutions, visit www.maion.co or contact Maion Co-Founder Adam Hallet.