As globalisation increase, competition becomes more intense. Consumers now demand for good quality products with lower prices. With these in mind, manufacturers are racing against tough competition to lower operational costs through increased efficiencies, without compromising on quality. This is where the implementation of smarter manufacturing processes and re-evaluation of supply chain protocols is the way to go. Here are 5 changes manufacturers can make in 2022 to significantly lower operating costs and boost profitability.
1. Improve Quality
COVID-19 has inadvertently changed consumer behavior demands. Even though consumers are constantly seeking for lower prices, manufacturers must refrain from falling into the price war trap and compromise the quality of products produced. With proper quality assurance controls in place, quality issues and rejection rates will also be reduced. Ultimately, reducing costs from wastage and remakes.
2. Monitor Your Supply Chain
Producing high standard products will require uncompromised raw materials. Trading off quality on any of the components which makes up the finished goods along the supply chain, will negatively affect the Company. Worse still, if the product becomes dangerous or defective. Thereby, tarnishing the Company's good name.
3. Increase Visibility
With the advancements of technology, systems can easily provide meaningful and useful insights on important areas such as manufacturing time, quality, maintenance, cost management, and people management. This can reduce risk of wastage, excessive downtime and poor decision-making.
4. Go Paperless
Replacing paper-based systems with electronic systems is the way to go now. Manufacturing companies which rely on paper records are on a serious back foot now. This is because outdated paper based filing systems can lead to data loss, erroneous information, and delayed responses to issues.
5. Lower Energy Consumption
Manufacturers must consume less energy and incorporate energy saving processes in order to remain profitable, relevant and compliant to social responsibility laws. Manufacturers can start energy saving efforts with tracking and recording energy usage of each process. This can help identify activities and processes that consume the most energy; thus, effectively devising ways to eliminate these problem areas.
Start these efforts of gaining competitive advantage by implementing a holistic manufacturing ERP software, such as EPICOR ERP software that employs connected solutions throughout its entire manufacturing process. These end-to-end solutions encompass processes from quotation to delivery of goods produced. It also connects all relevant departments together whilst allowing them to work together more efficiently. As a result of workflow being streamlined, productivity will be greatly improved with a reduction of unnecessary errors.