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5 Ways to Optimize Manufacturing Supply Chain Management

Bhagyashri Kambale | February 01, 2022 | 960 views
5 WAYS TO OPTIMIZE MANUFACTURING
A strong supply chain in manufacturing reduces interruptions, which may cost delivery businesses substantial time and money, as well as degrade their brand.

Maintaining consistency is important in any form of business. However, the important question that remains to be answered here is how to achieve consistency when the driving factors seem to be out of the company’s direct reach.

“The future of manufacturing is a critical enabler of economies.”

– Kathryn Wengel

In this article, we'll highlight the five ways to create a strong supply chain that helps any business reduce the risk of disruption and, finally, cost. Furthermore, we will discuss the supply chain leader, Cisco Systems, and how it ranked first in the Gartner supply chain top 25 for 2021.

How Supply Chain in Manufacturing Is Different

A well-functioning organization requires an effective supply chain. However, supply chain management in manufacturing is even more vital.

Below are the three reasons why supply chain management is different and vital in manufacturing. 
  • Products are more complex than they have ever been
  • Brand owners no longer manufacture their own products
  • Manufacturing is becoming more technologically advanced

5 Ways to Build a Strong Supply Chain


Strengthen Your Relationships

Strong relationships require both parties to be transparent and to continually aim for mutual benefit. Manufacturers in supply chain management must recognize the significance of building strong associations with vendors and should act likewise.The primary benefit of a great, healthy vendor relationship is that it enables you to maximize the value of your business. The more familiar you are with your suppliers, and the more familiar they are with you, the more likely you will receive personalized service, preferred pricing, and exclusive terms.

Effective supplier connections assist your business in the following ways.
  • Delivery of high-quality materials on time
  • Production goes off without a hitch
  • Take advantage of incredible deals
  • Excellent service
  • Saving your business time and money

Expand Your Supply Chain

Maintain good working relationships with multiple vendors to ensure the efficient operation of your supply chain. This encourages healthy competition, which might lead to reduced prices and better service. A diversified supply chain enables you to look outside the confines of your organization while also fostering innovation and more creative approaches.

Diversification of your supply chain provides flexibility, allowing you to adapt to changing market trends and consumer expectations. By diversifying your regional supply base, you may be able to provide more competitive rates on a local level.

Maintain Accurate Data

Both you and your supplier will inevitably suffer losses if your numbers are incorrect. Make sure your estimates are based on correct data or numbers and that you've taken into account all possible demand scenarios before drawing them. Collaborate with suppliers in the formulation of projections using your strong supplier ties. Under-and over-delivery and over-stocking can be avoided, and the likelihood of higher freight charges for urgent orders can be decreased.

Organize Integrated Systems

To make informed decisions at all levels of your business, you need a system that collects, integrates, and analyzes data. Supply chain integration is the process of establishing coordination and expanding connectivity across the whole supply chain, from procurement to production planning to logistics.

Advanced technological solutions have made supply chains more efficient and simplified than ever before. Software automation in supply chain management also helps in decreasing the stress on employees, minimizing errors, and improving resource utilization by utilizing high-quality software.

Always Have a Plan B

The risks associated with your supply chain can be reduced significantly, if not eliminated. An effective disaster recovery strategy is a contingency plan that must be prepared keeping in mind all the worst possibilities. There are numerous approaches to mitigating supply chain interruption, including regionalization, segmentation, and supply chain diversity.

Cisco Systems Tops the Gartner Supply Chain Top 25

For the second consecutive year, Cisco Systems is ranked first in Gartner's supply chain top 25. In addition, Gartner reports that the IT company's agility and competency in environmental, social, and governance (ESG) efforts prioritized critical infrastructure for hospitals and vaccine research. Cisco's sustainability standards are integrated into its supply chain business processes to ensure continual improvement and the generation of significant change necessary to manage ESG.

Cisco established two new targets for greenhouse gas emissions (GHG) reductions after reaching specific, ambitious targets one year ahead of schedule: A 30% reduction in supply chain GHG emissions, and by 2025, 80% of Cisco's component, manufacturing, and logistics suppliers will have a public GHG emissions reduction objective.

Final Words

A supply chain is a vital component of nearly all forms of business. If you are facing difficulty in effectively controlling your business's supply chain, consider the techniques suggested. The manufacturing supply chain process flow must be well-designed and well-executed to successfully complete the production cycle. Today's technology enables you to transform a complex supply chain into a simpler one that aids in risk anticipation and reduction. However, utilize this technology wisely and keep in mind that interpersonal relationships remain a critical component of supply chain success.

FAQ


How to build a strong supply chain?

When developing a robust supply chain, flexibility, data, future thinking, integration, and innovation are some of the most significant factors to be kept in mind. Moreover, keeping a backup of everything is critical.

What factors characterize a strong supply chain?

Visibility, optimization, achieving the lowest feasible cost, punctuality, and consistency are key factors of a successful supply chain.

What is supply chain manufacturing?

In the manufacturing industry, the supply chain is responsible for facilitating the transfer and transportation of raw materials into finished products.

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