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Follow on Google News | ![]() How to Overcome the Most Challenging Manufacturing ProblemsFind out how you can return your operations to levels of maximum efficiency and productivity post the coronavirus pandemic.
By: Formaspace Address The New Logistics, Procurement, And Inventory Control Challenges Arising From Today's Changing Global Trading Environment. It's hard to escape the recent news reports that chip shortages have disrupted manufacturing operations at major auto companies, forcing many to shut down production lines entirely. But as we all know, while chip shortages have been getting all the headlines, widespread shortages are affecting manufacturers across the board, from sourcing raw materials and components to difficulties in booking transportation to bring goods to market. Economists probably aren't exaggerating when they compare the current worldwide economic conditions with those of the immediate post-WW II demobilization period when manufacturers also faced debilitating material and labor shortages, price inflation, and transportation logistics challenges as they resumed producing consumer goods after years of supplying war materiel for the allied forces. So what can be done today? We'll break the problem into short-term and longer-term issues. Over the short term, manufacturing supply chain and logistics managers may need to: - Quickly identify and engage with multiple supply sources for materials or components that are in short supply. - Where possible, change up production lines to substitute more readily available raw material alternatives or components/part designs available from new suppliers. - In extreme cases, it may be necessary to ship products to end-users without some accessory parts included (which could be delivered and installed after initial delivery). - Double down on reducing material waste in production (see next section for more ideas on this). - Consider working with regional shipping companies if national transportation companies, freight forwarders, etc. cannot meet your deadline requirements. - Merge smaller LTL shipments into full truckloads (FTL) when purchasing raw materials or components or shipping your products to market. - Consider partnering with other local manufacturers to consolidate FTL shipments if you cannot meet FTL minimums on your own. - Use more expensive shipping methods, such as air cargo, if no alternatives exist. Over the long term, manufacturing supply chain and logistics managers may want to investigate: - Move offshore manufacturing operations back to the US or engage with US-based suppliers. Read more...https://formaspace.com/ End
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