Winning Manufacturing Strategies

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What happened to the Good Old Manufacturing? : Part 2

Guest Post by Varun Chhibber, Associate Consultant, MFG-ADT Online, Infosys


In my previous post I touched upon the recent trends in outsourcing of manufacturing and the main reasons cited by firms to outsource.

The road to outsourcing was not that easy, outsourcing faced a lot of opposition, as it was understandable also. Everything cannot be and should not be outsourced. For example it makes sense to outsource the production of an iPhone, but its designing, marketing etc. are still kept in-house. It is a decision that manufacturers have to take keeping in mind many factors.

Following figure shows the questions a Manufacturer need to ask before outsourcing any process:

questions to ask.png

Answering all these questions will help firms understand and gain a perspective about the ramifications of their actions. A firm has to ascertain what the risks, costs associated with a process are and also how dependent processes will be affected before handing over a process to some outside agency. Only after a thorough analysis of these answers a firm would be confident in deciding the fate of a process.

All said and done, in the end it's all about efficiencies when it comes to manufacturing. Manufacturers are moving their business wherever they can have higher efficiencies in the long run. Technology has helped manufacturers to this end a lot as it has enabled them to do what they could not think of earlier. Now they can control their operations spread far and wide across the globe and that too with great ease.

Business Value

Technology solutions like Supply chain management solutions, Inventory management solutions etc. have helped manufacturers make quick and profitable decisions in real time. It has led to a phase of technology fed manufacturing which has enabled manufacturers to manage their operations effectively.

This is where we come into picture; sophisticated technology solutions have helped numerous firms in streamlining their operations. All these technologies are enabling countless firms to manage their business in a more efficient way.

In our experience we have seen such technologies providing numerous Benefits to the manufacturers, some of them are:

·         Improved visibility across the supply chain which leads to a better control over the processes.

·         Timely action is aided which helps in avoiding delays and loss of reputation.

·         Strong partnerships are forged with the suppliers & distributers because of close collaboration.

·         Better planning.

·         Better inventory management which leads to greater liquidity.

Here's looking forward to a technology propelled futuristic manufacturing. For now, let's just say our goodbyes to the good old manufacturing!

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