NovaCast’s customer base is a healthy mix of those ordering from our UK foundry, and those that want to take advantage of the more competitive rates and capacity of our partner foundries in the Far East and India. Clearly, for castings imported from these international locations, the current disruption in the Red Sea could have had a significant impact on both lead times and shipping costs.
At NovaCast, we are very experienced in managing supply chain risks and delivering the competitive advantage that sourcing castings abroad can offer our customers. That’s why we provide them with a forward ordering and stockholding facility that protects them from the vagaries and risks associated with international shipping through one of the most volatile regions of the world.
The difference this approach makes is very tangible and very real. One industrial valve manufacturing customer, for example, would have had to cease production completely by now due to the delays in re-routing container ships, with their castings on board, via the much longer Cape of Good Hope route. As they had the foresight to take advantage of our stockholding facility, they simply draw down from their stock of valve bodies held in our warehouse and carry on meeting time-critical orders.
We obviously don’t know how long the current crisis will last, but when assessing the costs, benefits, risks and opportunities presented by sourcing from abroad, it pays to engage with a company that has been managing these supply chain risks for many years.
To discuss your requirements, call a member of NovaCast’s team on +44 (0)1225 707466, send us a message here or email sales@novacast.co.uk.