Compare landed cost, not unit price
Put freight, duties, inventory carried in transit, minimum order quantities, quality escapes and travel into the same column as the piece price. Domestic quotes routinely look worse per part and better per landed unit on low and mid volumes.
- Freight, duty and brokerage
- Inventory held in transit and safety stock
- Cost of a quality escape and the time to correct it
- Travel, oversight and communication overhead
When domestic clearly wins
Short lead times, frequent design changes, heavy or bulky parts, low volumes, and programs with content or security requirements generally favour a domestic supplier.
Content and program requirements
If your program carries domestic-content or security obligations, state them in the RFQ. They narrow the supplier list immediately and change the documentation a supplier must provide.
What to look for in a supplier
- Located for the freight and travel profile of your part
- Capacity in the process you need
- Documentation practices matching your program
- Communication and responsiveness you can live with
Certifications buyers often need
- ISO 9001
- Program-specific registrations where applicable
- Documented material traceability where required
Questions to ask prospective manufacturers
- What is your realistic lead time at my quantity?
- What portion of your work is currently domestic-content sensitive?
- How do you handle an urgent design change mid-run?
- What would reduce cost most in this design?
Frequently asked questions
- Is domestic manufacturing more expensive?
- Per part it often is. On landed cost, at low and moderate volumes with frequent changes, it frequently is not. Compare on the same basis before deciding.
- How do I check a supplier is actually domestic?
- Ask where each operation is performed, including outside processes like plating or heat treat, and confirm in writing rather than by assumption.