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Energy Business Review | Wednesday, January 04, 2023
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A domestic battery manufacturing partner comes with numerous advantages, such as expertise in technical fields, creation of demand, and offering access to the market.
FREMONT, CA: The importance of a strong domestic supply chain has been one of the biggest takeaways from recent years. When ports were closed, raw materials and finished goods were left in shipping containers to rot. Some organizations are reevaluating sourcing as trade routes reopen and production levels approach pre-pandemic levels.
A domestic battery manufacturer of lead-based automotive, truck and SUV batteries may offer products at a lower cost than overseas suppliers.
The benefits of a domestic battery manufacturing partner are as follows:
Offering readiness for the market: Importing batteries from an overseas manufacturer can take at least 30 days to reach the port and another 30 days for transit. The delivery of products to distribution centers and retail stores takes even longer. Distributors and retailers can be assured that their orders will be filled on time if they work with a domestic battery manufacturer. As shipments would come from within the country instead of overseas, transit times would be greatly reduced.
As a result of shorter transit times, freight costs are also lower. Considering the rising fuel prices and driver shortages, minimizing these costs can have a significant impact on a company's bottom line. As a result of shorter lead times, less inventory needs to be carried out. Due to the time it takes to transport products from overseas, companies often order larger quantities. By carrying less inventory, distribution centers have lower holding costs, and lead batteries do not have to be boosted before shipping to stores.
Additionally, shorter lead times allow for greater marketing flexibility. It is possible for brand naming strategies to change. It is possible to update packaging and labels to showcase different features. Battery partners based in the U.S. are better able to assist with quick changes. As well as providing marketing support, domestic partners can help retailers showcase their product portfolios with messaging and content.
Support for programs: Category management services help determine the types and quantities of batteries that will sell in a timely manner. It minimizes the number of aging batteries sitting on shelves in the distribution center by driving sales. These strategies can be better formulated with the help of U.S.-based partners.
Another key area of support is the management of used batteries. Lead can be continuously reused without losing its performance capacity. With a 99 percent recycling rate, lead batteries are the most recycled consumer product in the U.S. To continue the circular economy that drives the lead battery industry, most domestic battery manufacturers have relationships with recyclers that ensure cores are collected and processed.
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