Globalization Vs. Localization

When it comes to creating an effective sourcing strategy, the debate between globalization vs localization is both timeless and complex. Year after year the electrical industry continues to evolve and faces new supply chain issues. So, it’s important that you can compare each of these strategies to determine which is best for you and your customer’s needs. After two rewarding decades of manufacturing power solutions, our team has learned to weigh the pros and cons of each sourcing methodology.

Would you rather offer your customers a large supply of inexpensive equipment or top-notch power solutions that were produced in a small batch? That’s the main idea that these strategies seek to answer. Globalization quite literally opens the door to all the goods in the world, allowing us to access novelty items at great prices. On the flip side, localization grants us lower lead times and higher quality materials. So, in the debate of globalization vs localization, which one reigns supreme?

Globalization

In the context of globalization vs localization, globalization refers to the process of business, technology, and culture melding together at a global scale to support the exchange of goods and services between countries. For example, centuries ago, the Silk Road allowed simple trade routes to form the early stages of globalization. However, in today’s world, the industrial and digital revolutions have paved the way for global supply chains to be more connected and efficient than ever before.

As we briefly mentioned, a noteworthy benefit of globalization is that it opens access to new products and materials. Some countries have unique raw materials or manufacturing capabilities that can’t be found anywhere else in the world. For example, aluminum is a material that we use to build our Camlock Panels. Aluminum’s raw form is called bauxite, which is mined from the earth in countries such as Australia, Brazil, and Guinea.

The labor and cost of raw materials needed to create products overseas costs a fraction of the price when compared to products made in the US. Because of this, American companies can buy goods from foreign manufacturers at cheaper prices and offer distributors or end-users a lower price tag. This also allows American companies to buy in bulk and stock up on products and supplies so that they have more products to offer consumers.

Localization

As you may have guessed, a localized sourcing strategy involves purchasing source materials that were made in your country. In the discussion of globalization vs. localization, what are the advantages of a domestic sourcing strategy? After some reflection, we would have to say that access to higher-quality materials and reduced supply chain risks are some of the top benefits of localization.

Power distribution units, such as our Generator Docking Station (GDS) and Quick Connection Switch (QCS), stand as prime examples of how our localized sourcing strategy allows us to provide you with exceptional quality. These power solutions are constructed of high-end materials that were hand-selected by our team of Power Assemblies engineers. All our equipment is fabricated in a small batch and carefully tested before shipping to your facilities. This way, you can feel confident that our power distribution gear is designed to provide you with industry-leading performance that stands the test of time.

We understand that lead times can make or break your customer’s project. While we do keep plenty of pre-assembled Generator Feeder Cables on hand, many of our power distribution units are built to order. Maintaining close relationships with suppliers allows us to always have access to the components we need to provide you with quick lead times. This way, we can always provide you with the equipment you need in a pinch.

Having mutually beneficial relationships with our vendors helps us to minimize supply chain hiccups. We can quickly communicate our timelines and needs with our suppliers to help us stay ahead of the game. This makes it easy for us to regularly conduct site visits, quality checks, and face-to-face meetings as we work together to create exceptional power products.

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