Shop Talk

Global Manufacturing– Oh, how it changes…

In a recent article from Supply Chain Brain, it mentioned the key trends that are driving efforts by companies to reduce costs, boost product quality, and gain greater visibility into the key processes among all supply-chain partners.

The globalization of supply chains is causing companies to take a fresh approach to their manufacturing strategies and they are working to align capabilities with vendors based on common technologies, products and market clusters.

Leading organizations are also focusing on aligning metrics across their supply chains. And they are beginning to incorporate sustainability concerns into their decision-making processes. In addition to the traditional emphasis on maximizing the use of equipment, they are factoring in the usage of water and other resources.

They are beginning to collaborate more closely with vendors in areas such as customer demand and product creation. Their goal is to move beyond the old transactional relationship, with its sole focus on price.

Manufacturers today are doing a better job of aligning production with demand, but they still have problems reconciling sales and customer forecasts. Getting an accurate number requires full visibility into a vendor’s capabilities, constraints and costs. Assuming that the economy begins once more to grow, companies will resume their efforts to boost agility and responsiveness through improved collaboration.

Share with us how your company is changing with the times.

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