As a business grows, fragmented processes often develop with it. For example, those involved in production/manufacturing planning may use an Excel spreadsheet to track orders through the various stages of manufacture,
but this will not talk to sales, warehouse or shipping—each of which may have their own system. Companies have even been known to plan schedules using Post-it notes on a wall! Staff in each department has to continually duplicate data, drastically increasing the possibility of error. Data is not updated between departments, which often results in wrong or no information being available when the staffs need it. Reporting also is an issue, as collating data across departments and then number crunching to get the required figures takes time and may even be impossible if the data simply isn’t there.
The paper trail generated by each order can also be frightening, as each department struggles to maintain data integrity on its own localized system and pass information to the next or previous link in the chain.
One of the biggest areas for potential losses is warehouse. With no accurate way to plan ahead, companies often wildly overstock, tying up significant amounts of cash. Also, the above mentioned issues of duplicate entry of data and paper trails can require constant inventory checks, which take up valuable time and often throw up inaccurate figures. All of this can lead to negative consequences for management, as they are unable to make informed decisions without a clear view of the company’s position.
Managing your supply chain and inventory is crucial to any manufacturing business. As companies look to ramp up production, they also need better, more agile manufacturing processes. As such, manufacturers have begun embracing the need for digital transformation.
Inventory management is a common problem in the manufacturing industry. Holding too little inventory can hurt both profits and the relationship with customers. Keeping too much inventory can be costly to store and difficult to sell. So investing in the right software and processes to track and manage inventory can save manufacturers time and money.
Real-time tracking enables manufacturers to monitor and manage the flow of raw materials. It also lets them track work in process and finished products. This level of insight means companies can prevent inventory issues by intervening at first sign of a problem.
The impact of supply chain problems has become topical in the wake of the Coronavirus (COVID-19) outbreak. Many manufacturers source parts from China—most notably computer and electronic components. And these companies are already feeling the sting of the supply chain disruption.
Digital transformation can support more agile importing and supply chain management. And through dual-sourcing, companies can reduce their reliance on one supplier for raw materials. These steps can reduce manufacturers’ exposure to the risk of supply chain interruptions.
Manufacturing challenges associated with globalization is similar to the problems which face manufacturers selling direct to consumer.
Yes, globalization gives your business more freedom to choose a supplier for sourcing your raw materials and gain access to a larger audience, but with this huge opportunity comes the risk of a problem occurring along your supply chain.
And that’s not including the fact that your competition has the same opportunities too, meaning you’re competing for a market space on a larger scale.
If you want to overcome the manufacturing industry challenges of scaling your business, you’re going to have to start:
— Selling internationally;
— Leveraging your online presence; and
— Finding the right tools to help you manage the complicated logistics and trading laws of different countries.
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thanks for sharing your experience, it is very good!
A scientific production plan is very important
Thank you so much for you expound these problems, they are really important
Yes! a perfect manufactruing management is very important for a company, especially for a mold company
our process is the same with yours, These problems must be solved at all stages of manufacturing
thanks for sharing your experience in manufacturing
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