Three ways to increase supply chain speed in manufacturing
As the world continues to mass adopt innov...
Supply Chain Digital takes a closer look at how organisations can speed up their manufacturing supply chain.
As the world continues to mass adopt innovative technology and the ease in which consumers are able to receive information via the internet increases, consumers are demanding more immediacy when it comes to the services and the products that manufacturing organisations provide. WIth this in mind, industries need to ensure that they are prioritising speed across their operations, in order to meet customer demands.
With supply chains becoming increasingly virtual as a result of innovative technology, the manufacturing sector needs to focus on developing a clear strategy in order to boost its overall responsiveness to demands. Three best practices to speed up the supply chain from the initial upstream planning stage through to the final mile of deliver include:
Investment in transparency and visibility
Visibility tools - technology which is more important than ever before! Supply chain visibility is an effective way to gain real time information about business operations such as order statuses.
By using the right kind of visibility too for your operations, could have a considerable impact on the velocity of a supply chain, a result of having immediate access to information required. A capability which is extremely important for those looking to complete multiple same-day delivery orders.
Reviewing suppliers can be one of the key ways in which an organisation can transform its supply chain to increase effectiveness and speed.
It is important for organisations to look at the historic data of their suppliers continuously to detect suppliers that are continuously inconsistent with stock such as being slow to deliver or out of stock, then reviewing these suppliers can help an manufacturer to make sufficient changes to its supplier base to improve its production speed.
Automation - technology which is changing the world of manufacturing. This innovative technology is providing a lot of new opportunities for the industry, with warehouse automation quickly becoming the industry standard.
Within manufacturing warehouses the use of automation removes the risk of human error, allowing high levels of accuracy, velocity and flexibility. With supply chain automation, manufacturers will experience more cost effective, accurate and profitable operations. Those who are not yet utilising this technology will see delivery and supply chain speed slow down.
With the ever evolving technology industry it is important for the manufacturing sector to continue its digital transformation, as well as keeping up with the latest trends and expectations. If manufacturing supply chains fail to adopt such changes they risk facing a drop in industry.
Ultimately when it comes to a manufacturing supply chain, it is important for organisations to focus on accuracy and speed in order to grow within the industry.
For more information on procurement, supply chain and logistics topics - please take a look at the latest edition of Supply Chain Digital magazine.
5 minutes with: Ivalua’s Sundar Kamak
Who are you?
My name is Sundar Kamak, I’m Head of Manufacturing Solutions at Ivalua. I’ve been with the company for around two years now, and I’m responsible for our industry solutions and our pre-sales team. Before joining Ivalua I spent almost 20 years in the source-to-pay procurement space, working for a number of providers. But I got my career started in manufacturing and supply chain, specifically in automotive and aerospace.
And what is currently taking up the majority of your professional time?
The last year I've been focused in helping organisations put together a digital transformation strategy, especially manufacturing companies, so they can continue to address some of the challenges they face due to the COVID pandemic.
The traditional approach of engineers designing their latest product then procurement going off to source no longer works
What are the biggest challenges facing your corner of supply chain?
We have a lot of clients coming from different backgrounds - aerospace, high-tech, automotive - and they’re feeling the pressure and the crunch. There’s a lack of product, lack of material availability, lack of resources, labour shortages. So, I work with the leadership in these organisations, try to understand what problems they're looking to solve and come back with Ivalua solutions that can help them address some of these challenges.
Where do the biggest opportunities lie?
If we look at manufacturing, it all comes back to procurement and supply chain being involved sooner in the process. The traditional approach of engineers designing their latest product then procurement going off to source no longer works. It’s important to treat suppliers like partners, which means you build trust, so they can participate very early on in the product design and product development process. It’s not done consistently in the manufacturing sector, but it will be key.