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Operations Performance Is More Critical Than Ever
We know what you are facing
A 2009 PricewaterhouseCoopers Manufacturing Barometer Report of U.S. industrial manufacturers identified three critical areas for manufacturers to focus on: operational efficiency/cost reduction; supply chain management; and finances, working capital, and liquidity.
This should come as no surprise. As industrial manufacturers have been benefiting from increased supplier content in the products they manufacture (and reduced costs), they're also starting to feel the pains of outsourcing. Often, supplied parts can only be sourced from one, maybe two, suppliers, creating high risk for the industrial manufacturer. As the supply chain extends its reach around the globe, supply chain complexity also increases.
Because industrial products often mean large capital investments, many customers will hold off until the last minute, turning their order into a rush job once committed. This means desired delivery times are inside of actual lead times.
Keeping expensive parts/products in inventory is just too costly and is a dangerous practice given the level of customization customers typically require. A growing number of customers expect to make configuration and other changes right up to the last minute, often in conflict with component lead times and frequently jeopardizing already aggressive delivery timelines.
And it doesn't stop there…other supply chain management challenges industrial manufacturers contend with include:
- Volatile energy prices
- Spikes in metal prices
- Increasing global competition
- Aging legacy applications designed for a 20th century environment
Today's Challenges in Industrial Manufacturing
We Can Help You Gain the Supply Chain Agility You Need
Kinaxis RapidResponse integrates demand and supply planning, and provides industrial manufacturers with the speed and agility that is critical to meeting today's challenges.
What if you could…
- Compress process cycle times?
- Drive lags out of the manufacturing process?
- Optimize inventory management for better overall performance?
RapidResponse provides you with essential supply chain visibility into your extended supply chains, ensuring that everyone in the organization has views into the current state of operations based on their role. Supply chain professionals can simulate the impact of plan changes, and identify and review the required course corrections to balance the sometimes competing priorities of customer service and inventory reductions.
Satisfying Profitability and Customer Expectations
While most industrial manufacturers operate relatively low-volume, non-commodity businesses, this doesn't prevent them from having demanding customers or complex supply chains.
Increasing outsourcing…faster order delivery expectations…rising commodity costs: The result is a situation where profitability and customer expectations are often at odds.
- “Some of our clients have found Kinaxis to be extremely valuable in helping them communicate much more quickly and much more accurately with a lot of their supplier companies and also with their customers…”
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Shoshanah Cohen, director, global supply chain innovation practices, PRTM
To thrive in today's environment, industrial manufacturers need to shift from a role of controlling all aspects of manufacturing, to one of coordinating activities, with in-depth input and interaction with customers and suppliers.
World-leading industrial manufacturers rely on Kinaxis™ RapidResponse™ to turn their supply chain management pains into gains. We have helped customers achieve the following operations performance improvements:
- Days of supply cut by 70%.
- Clear-to-build process went from two days to 20 minutes. Reduced effective lead time from six months to three weeks.
- Expediting fees reduced by a third and past-due purchase orders cut in half.
- Reduced liability on high-dollar-value parts by between 25%-30%.
Want to learn more about how RapidResponse can help you close the gap between planning and execution to increase customer service and reduce inventory risks?
