Manufacturers taking more control over their supply chain
A growing trend in our economy is that manufacturing companies are seeing the need to be in more control over their own supply chain. We expect this trend to continue as manufacturers face the same concerns as any other company along the supply chain down to the end consumer: how to get the products to the customer as quickly and cost-efficiently as possible.
With big companies such as Amazon offering almost immediate shipping, manufacturers are finding the need to compete on a higher level because their customers, the retailers, are being required to produce quicker results.
A little background
Over the last decade, there has been an increased level of collaboration between manufacturers and their customers to determine how the manufacturing customers can better serve their own clientele, usually the end consumer. Reports from various manufacturers across sectors say that getting the right type and amount of raw materials is an ongoing challenge.
This has led to the manufacturers realizing that they need to focus on new strategies that allow them to produce what their customers need, but also protect their own interests. A big part of this effort is to establish better control over their own operations.
Manufacturers are finding several ways to combat their growing supply chain challenges.
Integrated business partnerships strengthened by technology are becoming more essential, rather than the normal vendor-client relationship. This will allow them to do be co-dependent on any given customer.
To do this, manufacturers are going to have to do as much internal collaborating as they do external. This means focusing not only on short-term execution, but also long-term strategic planning.
SupplyChainDive recently reported that 65% of manufacturers said that digitalization is their top priority in improving their supply chain. Becoming more digitalized will help both the manufacturers and the consumers as it will keep the business running smoothly, and ensure the products are where they need to be at the correct time.
The study also shows that 51% of surveyed manufacturers “are focusing on better internal and external collaboration across the supply chain, 44% are prioritizing demand sensing to more accurately gauge and meet consumer expectations, and 41% are prioritizing inventory optimization. All of this means manufacturers are being required to adopt more of a “retail mindset.”
Manufacturers that find themselves capable of navigating this landscape will find themselves in a much better position than ever. They will be better positioned for more profitability, better customer service, and becoming ultimately more competitive.
Are you a local manufacturer in the Northwest Arkansas or Little Rock regions? Are you getting your supplies as quickly as you need to produce effective results? Give us a call and find out if we can help with that process.