New Challanges to Manufacturing

The economics of manufacturing is changing as new trends emerge. Energy costs are declining in the United States; which is great for manufacturers. The labor cost gap between developing nations and undeveloped nations is shrinking. New technologies including advanced robots and 3D printing is effecting the landscape for global manufacturing companies. This can be challenging because many questions arise on how to remain competitive and how to extract the most value from a firms supply chain.

Many companies are asking if they should re-shore because of the changing costs in labor and energy. Only a very small part of the new challenges to manufacturing is driven by labor costs and energy costs. Companies need to start thinking about what will be driving business decisions in the near future. For companies to remain competitive in 2 year and even up to 10 years, they need to beginning managing for the next economic landscape.

Manufacturing strategies will need to become focused on adopting flexible supply chains. Learning what product segments need to be manufactured near demand will be critical as emerging markets overtake demand in developed nations. The supply chain ecosystem is a bit confusing for many businesses as investments need to be planned and focused around demand. Proximity to demand and establishing the necessary training through community colleges to build the needed work force and the necessary partnerships will become the most fundamental driver of value creation.

Recently a manufacturing facility was moved from Mexico to the United States in order to take advantage of these trends in the value chain. This facility needed to be not only close to demand but needed to be able to access new technologies for better operations. Collaboration with customers are critical as markets in the united states seek more variety and specialized goods. This changes manufacturers to focus on process innovation and to seek out the new technologies all over the globe to incorporate them into their value chain.

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New Challenges for Manufacturing

The economics of manufacturing is changing as new trends emerge.  Energy costs are changing and also declining in the United States which is great for manufacturers. The labor cost gap between developing nations and undeveloped nations is shrinking. New technologies including advanced robots and 3D printing is effecting the landscape for global manufacturing companies.  This can be challenging because many questions arise on how to remain competitive and how to provide the most value from a firms supply chain.

Many companies are asking if they should re-shore because of the changing costs in labor and energy. Only a very small part of the new challenges to manufacturing is driven by labor costs and energy costs. Companies need to start thing about what will be driving business decisions in the near future.  For companies to remain competitive in 2 year and even up to 10 years, they need to beginning managing for the next economic landscape.

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3D Printing, the new manufacturing revolution

The capabilities of 3-D printing hardware are evolving rapidly. These machines the begin by printing simple plastic items can now handle a range of materials from titanium to organic materials like human cartilage. Not only does this technology allow for a spectrum of materials but allow  for production of fully functional components including LED’s and other electronics.  The ability to create complex items with mechanical and electronic components will make 3-D printers a viable alternative to standard manufacturing.

The technology is rapidly improving and costs are decreasing. Larger and more complex components, increased precision , and higher speeds is just the tip of this iceberg ready to sink the manufacturing economy. In my opinion it is not a matter of if 3-D printers will become a staple in every house but when. Just like how the personal computer invaded in the 1990’s, 3-D printers will rock the foundation of business.

Expect 3-D printing to:

1. Change the design, production and logistics of products
2. Influence manufacturing strategies
3. Become highly profitable
4. Change business models to maximize product design revenue
5. Quickly and continuously improve capabilities
6. Make many manufacturing facilities obsolete

3-D printers still have many markets to profit from before entering our homes. From a historical perspective, 3-D printing has a clear path through corporate America.  Just as computers made their way from research to business, 3-D printing will replace many conventional manufacturing processes.  They will eliminate the need for specialized machinery, they will reduce development time, and reduce the waste of raw materials.  Research suggests that 3-D printing, also known as additive manufacturing could reach $1/2 Trillion by 2025.

13 Reasons to Hire A Management Consultant

Just a few reasons how companies benefit from hiring a consultant

1. You receive a second opinion that is objective
2. Consultants can identify improvements quickly
3. You receive expert advice that is relevant to your needs
4. Fill in your staffing needs immediately until you find a full time employee
5. Avoid Internal Politics with an External force
6. Learn About Best Practices for your industry
7. Consultants are highly analytical and can solve problems with certainty.
8. Consultants can provide training to your staff.
9. Consultants use Metrics to define their success and are results oriented
10. Proven, yet flexible, Project methodologies appropriate for the task
11. No cost of training or “experimenting” on how to complete the assignment
12. Improves your data-mining methods with specific goals in mind
13. Effectively uses important and relevant data

Why Hire an Operations Consultant?

At Operation Consulting Group, our goal is to provide the best expert advice for your supply chain and operational needs so you can make better business decisions.  Consultants can guide you and your team to understand the finer details of Logistics, Procurement, and Operations.
Health Care Operations

Omni-Channel Commerce

Omni-channel commerce is becoming the strategy of choice by most retailers as a way to compete with Amazon’s Supply Chain. Companies are now using more store stock as the inventory of last resort to fill an e-commerce orders.  Omni-channel retail strategies are often seen by supply chain consultants as a response to changes in the market place and how people shop.  Online commerce is growing at a staggering rate and retailers need to build a optimized distribution network to compete with other online retailers. 

Same day delivery service might catch on as well but is at least a few years away from being the required norm from customers.  Amazon and Ebay are testing this concept in various cities in the united states.  This includes their own delivery vehicles so the traditional door to door delivery services might end up loosing if they cannot provide better logistical support than online retailers. 

Omni-channel retail strategies concentrate on a seamless approach to logistics and is the evolution of multichannel retail strategies.  Customers are desiring to use multiple channels including their smart phones to make purchasing decisions.  This trend is leading businesses to learn how to connect to their customers in non traditional ways but this is still fundamentally a communication process.

Interesting Mckinsey info

McKinsey Seeks Culture Shift

How to Choose your Supply Chain Management Consultant

Supply Chain Management Consulting Companies

Many of the big supply chain management consulting agencies charge enormous fees but often its worth it for large companies.  For small to medium sized business, Companies like Operation Consulting Group will give you a better "bang for your buck"
Here is a link to learn more:   Operation Consulting Group

Make Sure your consultant has an MBA and not just a certification in Supply chain management or six sigma.  These programs are great but an MBA degree from a top tier school almost guarantees that you will have a knowledgeable supply chain management consultant.