Use industrial hubs to your advantage

Industrial hub in Asia
  • September 5, 2022

An industrial hub is what it sounds like – a collection of factories grouped close to each other. Especially, if your product is a more complex assembly, they can reduce many of your sourcing problems.

In this article, you will learn why and how you best make use of an industrial hub.

Specialised skills close to each other

The main advantage of an industrial hub is that you have specialised factories for each component collected in one place.

Because of the high competition in these areas, the factories usually deliver high quality in their work or else they will lose customers quickly. You should of course always research your suppliers carefully, and visit the factories regularly to maintain the relationship and control quality. But when you have found a range of suitable suppliers within the industrial hub, the logistics is much easier.

Because of the short distance between plants, you do not have to waste money and time on shipping components far. 

The best strategy when working with industrial hubs

Successful supply chain management relies on the suppliers. The most effective approach in an industrial hub is to engage a specialised supplier for each individual component. This practice offers several advantages.

First and foremost, specialised suppliers provide experience, expertise, and a well-established network within their specific domain. Leveraging their knowledge and industry connections can benefit your supply chain processes.

Moreover, nurturing a long-term partnership with each supplier is essential. This not only fosters trust but also streamlines the production process, reducing the likelihood of extensive mistakes.

This is how you minimise complications in the supply chain

A complex assembly involving many components and suppliers can lead to many problems and headaches. Even a minor error can snowball into extensive issues, resulting in substantial time and resources being wasted.

With suppliers close to each other you take some of that time away from the process, ultimately enhancing the efficiency and reliability of your supply chain.

Interested in supply chain management? Read these tips for developing successful supply chains in Asia.


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