Speaker: Conrad Leiva
Over the last few decades, complex discrete manufacturing has been increasing its dependence on the supply chain and getting more serious about working with suppliers. We have been helping them get leaner, certifying them, and creating better supply chain regulations and standards. Now we are focusing on the next level of supply chain management.
There is still a high dependence on manual processes in the supply chain. More than 50 percent of all processes are manual, depending on email and informal communication to expedite changes and address critical parts that have fallen through the cracks. We are working to create a roadmap that guides manufacturers from managing suppliers based on reducing cost and imposing penalties to a more collaborative way of managing suppliers that includes them as part of our team.
Because we need better formal ways to communicate and integrate our systems, we are putting portals into place. The next generation of supply chain management can take ad hoc communications and turn them into formal business processes that span the supply chain. We are improving visibility and efficiency of communication.
Things still fall through the cracks, however, and we still find problems all the way up the production line, where the cost of rework increases tenfold due to expediting the purchase of alternate parts or changing suppliers. Rework is also time consuming, so it is important to catch problems earlier and closer to the source without creating a burden on the supplier.
At the end of the day, in order to compete in today’s digital manufacturing revolution, companies must find a solution to integrate all interfaces into one digital thread. Download our eBook to learn how Solumina can make this a reality.