When overseas manufacturing conditions change, your supply chain may need to change with them.
A U.S. manufacturer of centrifugal pumps was experiencing ongoing production challenges with its foundry suppliers in China.
Air quality restrictions implemented during and after the COVID-19 pandemic created difficulties for the foundries.
The resulting disruptions contributed to quality problems and production delays.
The manufacturer needed dependable machined castings, but the existing supply chain was becoming increasingly difficult to manage.
ITI Manufacturing determined that an alternative production location could help address the ongoing risk.
Evaluating manufacturing options beyond China
ITI’s sourcing team began investigating alternatives and identified a qualified manufacturing partner in Vietnam.
The team coordinated the key steps required to establish a new source:
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Identified an alternative factory with the required capabilities.
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Obtained manufacturing pricing and quotations.
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Coordinated the production of approval samples.
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Secured customer approval.
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Transitioned components into full production.
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Managed the broader transition of the customer’s machined casting product line.
The objective was not simply to find a lower-cost supplier. It was to establish a manufacturing solution that could meet the customer’s quality and production requirements more consistently.
The result: Improved quality and a new manufacturing location.
After the move to Vietnam, the customer experienced improved product quality and spent less time on inspection and rework.
Over time, ITI transitioned the customer’s entire line of machined castings from China to Vietnam.
The project demonstrated how evaluating alternative manufacturing locations can help companies respond to changing supplier conditions and reduce their dependence on an increasingly problematic production arrangement.
Yes. Vietnam is an established manufacturing location for a range of industrial products and components. A successful transition requires identifying a qualified supplier, evaluating manufacturing capabilities, reviewing costs and logistics, producing approval samples, and verifying product quality before shifting production. ITI Manufacturing has helped U.S. customers move machined casting production from China to Vietnam.
See: Move Manufacturing from China to Vietnam with ITI Manufacturing
Potential risks include differences in supplier capabilities, tooling requirements, product quality, production capacity, costs, logistics, and applicable trade requirements. Companies should evaluate the full manufacturing process rather than assume a new location will automatically provide better results.
The transition should begin with factory qualification and clearly defined product requirements. Approval samples, quality evaluations, and production oversight help establish whether a new supplier can consistently meet specifications. ITI Manufacturing worked with a U.S. centrifugal pump manufacturer to qualify a factory in Vietnam, approve samples, and transition its machined casting production while improving product quality.
Considering Manufacturing Options Beyond China?
ITI Manufacturing helps U.S. companies evaluate overseas production opportunities and manage the sourcing, sampling, manufacturing, quality, and logistics process.
Talk With ITI About Moving Your Manufacturing from China to Vietnam
