At a time when the global economy is facing a plethora of challenges, Jonas Persson wanted to share an insight into how Rosti Group are supporting our customers to navigate choppy waters. Also, it is important to highlight the measures and changes we have implemented internally, primarily utilising our technical, engineering, production, and sourcing expertise to be a true Global Partner to our current and prospective customers.
Localisation of Injection Moulding Production
Customers across the globe, in all sectors, are increasingly looking to produce products and components near to their customer base. This transition is being driven by increasing costs to ship goods worldwide, the introduction of tariffs, the pandemic as well as issues surrounding the price and availability of raw materials in addition to the Russian invasion of Ukraine.
You can mitigate the risk of problems facing the sourcing and supply of goods by manufacturing in countries or regions local to your customers.
Through our global footprint of injection moulding sites, we are ideally placed to support businesses manufacturing goods in Europe, Asia and North America. To complement our production capabilities, you will benefit from our global product design, innovation, and engineering expertise.
Historically, decisions on where to locate production have centred on identifying a single low-cost site. With the changing landscape, it may now be more cost-effective for a global brand to manufacture in multiple places located near to main markets.
For example, a Chinese brand may have two core customer bases in the UK and US. In previous years, it may have been more efficient for Rosti to support them from our Innovation Centre in Suzhou and manufacture either in China or Malaysia before shipping to into the UK and US.
Fast forward to today, it would be cost-effective to continue to work with the team in China on design and testing before establishing production with either Rosti UK or Rosti North America. A true example of a Global Partner, helping you to reduce risks of supplying goods to customers.
The Localisation conversation has been around for a while, but the current challenges have accelerated the pace of change. In order to do this successfully, it is essential to partner with an injection moulding business that has the required capabilities, capacity and knowledge to support you.
Production Transfer Expertise
Continuing the theme of reducing the risk to supply, Production Transfer has become an increasingly important topic. We are seeing customers not only looking to localise production but also set up a secondary production source as a backup to fulfil orders if their primary production is disrupted.
Transferring or duplicating production in another part of the world (ideally strategically located with your customer market in mind) needs to be implemented professionally with an experienced and knowledgeable partner.
Rosti Group has the ability and capacity to support customers in having multiple sources of production, maintaining quality standards, implementing tooling, and managing both processes and costs.
As an injection moulding and solution partner, we can support customers with their primary and secondary production as well as collaborate with a customer’s primary injection moulding partner.
Our aim is to help customers to increase their capacity across the globe.
Facing Inflationary Pressures
As inflationary pressures are being felt across the world, Rosti Group is driving automation across the business to help us tackle this challenge.
We are continually conducting Value Added Engineering (VAE) to identify cost-down opportunities. Rosti proactively undertakes this analysis and presents it to customers, in order to help them to manage their costs and plan ahead as best as possible.
The rising cost of energy is speeding up the process to identify alternative sources of energy, and, we are naturally shifting attention to renewables. Across all of our sites, we are working tirelessly to introduce energy-reducing, environmentally friendly measures to reduce costs and our impact on the environment.
A truly Global Partner
With our strategically located sites across the globe combined with knowledge and expertise within our teams, we are constantly sharing knowledge, information and sourcing requirements across all sites and departments.
This is vital in helping us internally and with customers tackle the challenges the globe is facing at the moment. We are ideally placed as an injection moulding and solution partner, collaborating with customers in all areas of their product lifecycle.
As a result of the global materials shortages, Rosti is able to offer customers alternative raw materials which have the same qualities and meet requirements that can be sourced cheaper or more easily through Rosti in another part of the world.
Through our technical and engineering support, our customers have the ability to develop a product with their local Rosti team and then seamlessly relocate production to another part of the globe near to their customers/end users. We envisage this growing in the years to come.
We implemented communication channels internally that have allowed us to share market analysis and insight in changing circumstances (availability, price fluctuation). This allows us to track and monitor when and where is best to source materials at any given point. For example, we track the daily price of resins which will allow us to source resin in a particular market that will then be shipped to our other plants. This level of collaboration ensures we have as much control as possible over our supply chain.