Sponsored : It is often believed in manufacturing industry, no matter how great your business strategy is, if the production operations function can’t deliver, then you’ve lost the battle even before it has started. Today, supply chains have to be more agile & flexible than ever before in order to respond quickly to the slightest deviation in external factors.
With businesses becoming more global, adding newer products everyday to the production cycle, it is simply impossible to achieve the goals without an efficient and increasingly productive supply chain management at lower costs in a ferociously competitive global environment.
Inventory is one of the most dreaded term for most of the manufacturing outfits. Although having inventory on the balance sheet is an asset for the finance team, but it can also be a liability for several reasons.
The risk of inventory becoming damaged or obsolete due to a new product design or customer changing their requirement puts severe pressure on the cash flows of smaller manufacturing companies due to limited financial resources. Excess inventory costs money, takes up valuable warehouse and plant space and can cause deeper problems in demand planning, manufacturing and sourcing processes. In this scenario, Supply-chain management is arguably the most critical piece of the puzzle for every manufacturing unit. It’s a balancing act which is vastly complicated to manage, because there are a lot of moving parts, that can gobble up their cash resources very fast. Successful inventory management can help companies increase their inventory turnover, reduce inventory levels and increase on-time program deliveries.
In addition, the ability to track inventory throughout its life cycle allows companies to know at all times what is available-to-promise at all locations and therefore improve customer service. Better Collaboration with partners, suppliers and the all?important customer is vital, for the sole purpose of understanding the customer’s needs and wants. Organizations that stay in touch with partners and suppliers are much more likely to receive products in time to produce and/or fill the customer orders in real?time.
The success of any manufacturing organization will also depend on its competitive advantage. Manufacturers that successfully increase their customers’ success by addressing the key factors of affordability, service and customer management challenges, can in turn, increase service revenue growth, improve customer loyalty, and reduce costs through improved/common processes.
HP supply chain management solutions enable any manufacturing organisation to keep a strong focus on the building a lean and agile operation at an affordable cost. Its services are customised to enable any manufacturing business make better and faster decisions to respond quickly to changes in customer demand. These solutions are designed to handle key pain points of any manufacturing outfit including cost and price pressures, globalization of the supply base, overcapacity, diversification and operational complexity.
HP delivers an integrated package of business consulting, data management, and SAP support that encompasses logistics and business intelligence. HP solutions allows you to build a stronger & cost effective value chain for your customer by inserting automation into your key IT processes throughout the product lifecycle.