4 Manufacturing Supply Chain Strategies for 2021

2020 has been filled with unprecedented events. What started out as devastating natural disasters and a series of geopolitical events quickly worsened with the onset of the COVID-19 global pandemic. Many manufacturers had to stop their production which affected people all around the world. Other physical distancing measures were implemented which required many production facilities to adjust their processes. Customers themselves shifted their buying behaviors to shopping online to reduce contact with others and minimize their risk of getting infected. 

As we start thinking about the new year and what is commonly called “the new normal”, there are a few strategies that can be beneficial to help your organization prepare for what is to come. It is no surprise that we will see the effects of the COVID-19 pandemic in the next year. This is why supply chain leaders must begin implementing changes to prepare for what will come next. 

4 Manufacturing Supply Chain Strategies

This past year highlighted that it is crucial for companies to proactively put processes in place to avoid reacting to unexpected situations. The following strategies can help you do just that.

1. Building Resiliency

Many companies saw the importance of improving the adaptability and flexibility of their supply chain. Those who were resilient throughout the pandemic were able to quickly shift their operations to handle the various changes in demands and other restrictions. Those who lacked the ability to be adaptable suffered from having long lead times due to a lack of alternate sourcing for their materials.

It is important to start thinking about diversifying your supply network to be able to keep production moving if a supplier should be forced to shut down.

The pandemic also highlighted the importance of reducing human dependency in critical areas of your supply chain and operations. Companies who employed some form of flexible automation in their production and warehouse facilities  were able to comply with the physical distancing requirements put in place. 

2. Reshoring Your Manufacturing Operations

Another trend that started to emerge, and will continue to develop in 2021, is the reshoring of manufacturing operations. When production plants and ports shut-down and planes were grounded all over the world, the repercussions were felt by many.

More countries and companies realized the importance of being self-sufficient to improve the reliability of getting your materials on time to be able to meet demands. When the components of your supply chain are distributed all over the world, there is a higher risk of disruption along the way.

Shortening that chain by bringing your manufacturing operations closer to home will increase the reliability of it while also being a more sustainable option for many. Brining operations closer to home may also make some companies rethink their operations and sourcing options to choose greener and more sustainable options. 

3. Adapt to Changes in Distribution Practices

One part of the supply chain that went through the most changes was the distribution processes. The pandemic has accelerated changes in demand patterns with more individuals choosing to shop online for their goods. Ship-from-store and store pick-up options saw some retailers transform their stores into micro distribution centers. The physical store location is now being used to prepare online orders that are to be shipped out or picked up.

Larger distribution centers also had to accommodate for the change in buying behavior by mixing individual orders and bulk orders that are destined for retail centers. New processes and equipment are required for such distributions that are used to only ship out large bulk quantities.

One thing to keep in mind for the new year is to find strategies and solutions that will allow the company to be flexible and accommodate for changing buying behaviors. This will allow them to scale up or down their operations depending on the demand pattern. 

4. Implementing New Technologies

Many companies at all levels of the supply chain have started to implement more and more automation in the last few years. While automation is a great strategy for many companies, it is important to implement it right the first time. Companies that have built heavily automated and rigid processes suffered when customer demands changed rapidly. They were not able to change their operations to scale up or down their production processes. 

The key for beneficial implementation of technology is to adopt lighter automation or processes that will allow quick adaptation. As things will remain uncertain in the following year, it is important for companies to remain agile and quickly adapt to any changes.

Another great way to implement technology is through the use of an Advanced Planning and Scheduling software that will allow you to increase visibility within your production. These softwares allow you to reduce setup and changeover time by automatically creating the most optimized schedule to meet your company goals. The increased visibility allows you to identify and solve possible bottlenecks before they occur.

Becoming Proactive in 2021

The key to stay afloat in an unpredictable world is to become more proactive rather than reacting to changes and scrambling to stay in the game. If 2020 taught us anything, it is that things can change quickly and will remain uncertain for a while. 

To prepare for the next year, companies should create and analyze “What-If” scenarios that can include anything from machine breakdowns, demand increases and decreases, material costs increasing, etc. This will allow executives to identify the key problems within each scenario and come up with a solution before the situation occurs. These companies will then be prepared for “unexpected” situations and already know the best way to handle them.

An advanced planning and scheduling software like PlanetTogether allows you to create an unlimited number of “What-If” scenarios using your current production schedule to quickly visualize the impacts of changes made without affecting the Live scenario. 

We’re able to make strategic decisions that improve operations. We can proactively prepare for anticipated increases or slowdowns in demand.

DICK MARX, MATERIALS MANAGER, KNAPHEIDE TRUCK EQUIPMENT

Advanced Planning and Scheduling (APS) Software

Advanced Planning and Scheduling Softwares have become a must for modern-day manufacturing operations as customer demand for increased product assortment, fast delivery, and downward cost pressures become prevalent. These systems help planners save time while providing greater agility in updating ever-changing priorities, production schedules, and inventory plans. APS Systems can be quickly integrated with an ERP/MRP software to fill the gaps where these systems lack planning and scheduling flexibility, accuracy, and efficiency.

With PlanetTogether you can:

• Create optimized schedules that balance production efficiency and delivery performance
• Maximize throughput on bottleneck resources to increase revenue
• Synchronize supply with demand to reduce inventories
• Provide company-wide visibility to resource capacity
• Enable scenario data-driven decision making

The implementation of an Advanced Planning and Scheduling (APS) Software will take your manufacturing operations to the next level of production efficiency by taking advantage of the operational data you already possess in your ERP system. APS is a step in the right direction of efficiency and lean manufacturing production enhancement. Try out a free trial or demo!