Manufacturers embracing retail role to compete with Amazon
According to the 2018 Intelligent Manufacturing survey, 43% of manufacturers are reprioritising and focusing investments in technology on inventory optimisation solutions, with 41% targeting more integrated planning and execution technologies.
Manufacturers are turning towards these investments in response to the “Amazon effect” and current consumer demands.
51% of the responding manufacturers are focusing on enabling both internal and external collaborations throughout supply chains.
41% of manufacturers are targeting demand sensing to improve forecasting, whilst 33% believe data science is the best approach.
“The Amazon and Alibaba effect have significantly compressed consumer order fulfillment delivery time expectations,” stated Fred Baumann, Group Vice President of Industry Strategy at JDA.
“Now, more than ever, planning and execution processes must be more tightly coupled.”
“Yet even while our data shows a portion of respondents understand the importance of prioritizing both short-term execution and strategic long-term planning, too often we see manufacturing companies focused on one and not the other and it’s limiting the value of their planning efforts.”
31% of the responding manufacturers claim to focus on integrated planning as a means to integrated tactical execution though a single technology.
However, only 18% of the manufacturers claim to have reached digital supply chain maturity.
“Incorporating real-time data inputs across both the planning and execution horizons can further bolster an integrated approach.”
“We found that, as a result of implementing supply chain digitalization strategies or technologies, the subset of respondents who follow an integrated S&OP and S&OE approach reported benefits such as greater profitability (61 percent), increased customer service levels (49 percent) and reduced spend (48 percent).”
Find the survey here.
Grupo Espinosa: 70 years of constant evolution
Founded in 1952, Grupo Espinosa has been relentlessly supporting the publishing industry with producing more than 100 million copies every year – whether its books, magazines, catalogues or single-order custom prints. No project is big or small for Grupo Espinosa, as the facility can scale up on demand and their turnaround times are highly competitive. Grupo Espinosa works with on-demand digital press or offset press, in paperback with glued softcover binding, PUR softcover binding, stitched paperback binding, binder’s board, hardcover, saddle stitched, Spiral or Wire-O. Equipped with the experience needed for a product to leave the plant ready for distribution, Grupo Espinosa delivers anywhere inside or outside Mexico. Traditionally starting off as a black and white printing press, Grupo Espinosa has experienced transformation first hand – from colour to digital offset printing. Currently, Grupo Espinosa is also looking at making capital investments into audio books to match with the increasing demand.
So how did a seemingly local operation in Latin America become a world-renowned printing facility trusted by hundreds of clients? As Rogelio Tirado, CFO of Grupo Espinosa for the last six years says “It all comes down to our market experience and our dedication to quality”. With nearly 70 years behind them, and located in Mexico City, Grupo Espinosa has two major locations – one spanning 75,000 square metres and the other about 45,000 square metres. Both locations are controlled by a single ERP (Enterprise Resource Planning) system ensuring speed, consistency and quality of work. Tirado says this isn’t their only competitive advantage. He adds “Our competitive advantage is the relationship we have with customers and the trust they put in us with their intellectual property”. Speaking of trust, global publishing giant Macmillan Education exclusively partners with Grupo Espinosa for their Latin America operations, as part of Macmillan’s decentralized hub strategy. Having a facility that offered the full spectrum of service – from storing digital content to printing and distributing – was one of the major requirements for Macmillan, and Grupo Espinosa was recognized as the leading printing hub for providing this 360 infrastructure. Another factor that has led to success for Grupo Espinosa is the absolute focus on quality and time. The staff are committed to providing the best quality in the best possible time, without causing wastage of resources. Sustainability is a huge factor playing into Grupo Espinosa’s operations, and they’ve created a healthy environment with the sustainable use of paper and energy resources as well as keeping their employees – most of them associated with the organisation for over 10 years – happy. He adds, “In order to be truly successful, you need to be good to the environment, employees, suppliers, and your customers. But most importantly, you need to be sustainable, you need to have proper working conditions, pay proper salaries, proper prices for paper, source the paper from sustainable sources, pay your taxes, basically be a good global corporate citizen and that's probably one of the biggest achievements that we have.”