DHL Report Finds Manufacturing Supply Chain 10 Years Behind Other Industries
The manufacturing sector is lagging up to 10 years behind other industries according to a study conducted by logistics giant DHL.
It claims that manufacturers have been slower to respond to the speed of speed in its global marketplace, ultimately losing them money and market share to those getting it right.
The report, titled The Resiliency Challenge: Constructing the Agile Supply Chain for Heavy Industry, says that businesses in the field should respond quicker to driving trends.
Engineering and manufacturing companies are said to have the most cost-laden supply chains as they lack the maturity of other industries, but this can be reversed if investment is made in resilience, flexibility and visibility.
Trends highlighted by DHL include migrating manufacturing, consumerism, cost pressures and life cycle sustainment.
Author Lisa Harrington, president of the lharrington group, pointed out that many companies may have rich histories of 80-plus years but are used to business as usual and not familiar with significant change.
She called for a faster and leaner operation and warned that new capabilities could be used offensively against companies who fail to make adjustments.
Harrington also noted that consumer demand formerly typical of the retail sector is now percolating through to the heavy goods market. Increasing demands for locally sourced and produced products is another factor which manufacturers need to take on board.
Watch an interview with Lisa Harrington below.