Manufacturing 2.0: Strategy
Posted Thursday, December 22, 2011 by Don Kapuscinski
The demand for growth strategy work as well as mergers & acquisition (M&A) due diligence and integration services should rise in coming months. At the strategic level, companies also need help figuring out which international markets to target and how to enter them. Exporting and working globally is something that makes sense, but it is a challenge for many manufacturers because they are not certain about how to go about doing it. Companies that can figure out these issues have an advantage—but figuring this stuff out represents a challenge, particularly for upper middle-tier manufactures. … A lot of manufacturers know that they need to have a global strategy but many of them need help creating the strategy.
Manufacturers also need assistance figuring out how to rebalance regional manufacturing and supply to better match regional demand location. In the past, global sourcing and location decisions centered on chasing low-cost labor, as long as quality was acceptable. But the real, total cost of managing extensive manufacturing networks has risen. Many manufacturers moved too much production capacity off-shore to places quite distant from the centers of demand—driving up costs with more complex network management, and reducing their agility in responding to customer needs. Recent Accenture research indicates that 61 percent of manufacturing executives realize they need to rebalance their existing manufacturing and supply footprint to better match with the demand location.
Capgemini sees more clients moving to consolidate, harmonize and standardize processes and systems across their global enterprises. Capgemini refers to its work in this area as “One Manufacturer,” and it includes process improvements (including lean approaches) and IT work designed to drive efficiency and cost reductions in every nook and cranny of the company in a way that aligns with high-level strategy.
MRP Consulting has become the largest Dynamics GP Manufacturing partner in North America. We have worked with over 600 companies Worldwide and are available, at ZERO cost to you, for a 1-day onsite visit in which we will map out your current processes and measure them again your current systems. Sometimes a “tune-up” is all that is needed to keep your business running as it should. We can all agree that having the right software will not only improve internal processes and productivity, but will also improve customer relationships.
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