Modern Challenges

The world today is quite different from what it used to be. We are living in the post pandemic era where the world is battling issues that no one could have predicted. One of them is the discrepancies in the supply chain process.

The abrupt and severe supply chain crisis has sent companies scrambling to access raw materials and labor they need to manufacture goods and transportation capacity to ship products. Compounding the issue are erratic spikes in demand and inflated material and transportation costs. Many companies are making expensive short-term decisions that may have long-term repercussions and can even lengthen the crisis.

We at HLB Ijaz Tabassum and co are working more then ever to overcome these challenges. We have analyzed digital trends, conducted field surveys and hired experts to devise an implementable strategy to counter such issues in the most efficient manner.

Manufacturing Opportunities  

Any challenge opens the door for opportunity, especially for businesses nimble enough to adapt quickly. Although concerns remain about price increases, raw material shortages, and shipping delays, agile manufacturers can assess ways to mitigate issues going forward. As the demand for products and services increases during 2021, leaders who devise strategies that protect their bottom line and grow their market share can stand out from the competition.

Better Interaction with Customers

While forecasting technology and analytics are crucial to successful customer service, communicating and partnering with customers “beyond data” is one of the best ways to understand their requirements and needs. It is crucial to understand customers’ service priorities. Additionally, it is important to understand the extent to which changes in customer demand mix and channel are transitory or a “paradigm shift” going forward. These insights and other intelligence should then be incorporated into the integrated business planning (IBP), capacity planning and capital planning processes as well as the product segmentation model.

Manufacturer’s Top Growth Priorities

Increasing operational efficiency and reducing costs are at the top of the list for the majority of industries. Compared to their global peers, manufacturing leaders are more likely to focus on operational efficiency. Although organizational improvements are always a goal, the pandemic and ongoing logistics issues emphasized its importance.

As organizations concentrate on reducing supply chain disruptions, it’s essential to ensure smooth delivery of materials and goods. Operational objectives vary by segment and consist of digital systems, automation, workforce upskilling, and many others.

The Expansion of Digital Capabilities

Develop and implement a bespoke analytics infrastructure where appropriate to support “war room” development and execution of the product segmentation model and the prioritized procurement, production and service plans — integrating both quantitative and qualitative stakeholder and customer input. Leverage information from customers to “re-baseline” historical data in segmentation and other analyses to reflect known and forecasted demand requirements. In the longer term, a strong data management and forecasting platform is essential to get ahead of demand shocks. Being able to sense changes in demand patterns is crucial, particularly if supply chains are “long” and dependent on many upstream processes. Invest in “best-of-breed” analytical and -planning systems with robust scenario-modeling capabilities to respond to supply chain crises predictively and dynamically.

Secure Resources for Core Products While Enabling an Agile Delivery Model

Evaluate short-term opportunities to secure access to capacity, raw materials and labor pools. Critical raw materials and components should be procured from alternative supply sources and/or at lower lead times (and at a higher piece price), if necessary. This may cause margin and working capital performance erosion in the short term but is necessary to limit supply chain disruption. Additionally, companies may need to secure additional transportation and warehouse capacity, including expanding operations in off hours. In the longer term, procurement and planning strategies should help drive a more resilient and agile supply chain through strategic inventory buffers, multi-sourcing and “upside” capacity arrangements; expanding strategic contract manufacturing and third-party logistics (3PL) relationships can enable companies to adjust capacity and throughput in response to changes in business requirements.