Many of the large component manufacturers have multiple facilities in different locations around the world. On the other hand, there are also smaller manufacturers that only have one facility confined to a specific location. These different manufacturers are located where they have the easiest access to the necessary resources and labor, and in some cases where there is more demand for a particular type or style of component.

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The truth though is that there are many, many different parts for all kinds of different applications in electronics. Because of this, there are thousands of different electronic component manufacturers out there. In this passage check and read the content for more about domestic sourcing VS international sourcing in PCB manufacturing.

International Sourcing

Low-cost country sourcing is a procurement strategy that falls under a broad category of procurement efforts called global sourcing. This strategy involves a country from a high-cost country area — typically US, UK, Canada, Australia, and West European nations — purchasing materials from resource-rich low-cost countries; think China, India, Indonesia, Bolivia, Brazil, Russia, Mexico, and East European nations.

The aim of a low-cost country sourcing strategy is to minimise capital investment and maximise profits, with all other costs being equal. This form of sourcing is typically used for simple components or cheap consumer goods such as t-shirts — poor stitching on t-shirts pose a less serious consequence than a minor mistake on a computer battery!

Sourcing domestically

While international sourcing may be the best alternative where other countries have lower labour and production costs, domestic sourcing may be a better alternative in some cases.

Benefits of sourcing locally

You will also save time and money when shipping domestically as this is typically faster and much less expensive than shipping from international suppliers. Trucking carriers can be leveraged, while ocean carriers will largely be inflexible in terms of costs and timeframes.

Domestic sourcing tends to build consumer confidence, especially when it comes to fresh food and drinks. When consumers can buy with confidence, businesses gain their trust, resulting in increased brand awareness and loyalty.

Businesses that source domestically can enjoy the benefits of being in the same time zone as their supplier, meaning quicker communication so problems are solved speedily. You’ll also likely have better production control oversight to ensure that your suppliers are meeting deadlines and quality requirements.

What is the location of PCB sourcing?

Low-cost country sourcing (LCCS) is a type of international sourcing in which a company sources materials from countries with lower labor and production costs in order to cut operating expenses. The ideal countries for LCCS are resource-rich and have regulated wages such as: China, India, Indonesia, Bolivia, Brazil, Russia, Mexico, and all throughout Eastern Europe. End plant shipping to location, raw material and component weights, and end customer location can also tip the scale in favor of domestic sourcing. For example, metal powersports roll cages for ATVs are often produced domestically due to the large expense of shipping these heavy components from international markets that would eliminate any piece price savings.

What are the difference domestic vs international in PCB manufacturing?

Are you planning to manufacture new products? If your answer is yes, then we have a few tips for you on how to select manufacturing company.

When working with international supplier, It’s always a good idea to hire domestic manufacturer as a backup. Your local manufacturer can be used in case orders sourced from overseas arrive late or are defective. International shipment can take several weeks so, keeping product stocked locally will keep your clients happy.

Because of reduced labor costs, it’s typically cheaper to source your product from other countries, particularly in Asia, such as China, India, and Taiwan. But the decision is about much more than the initial investment and cost per unit.