SDCExec.com |

In a just-in-time economy, manufacturers can’t afford lackluster performance. They have to get the job done faster, better and cheaper. Problems like downtime, process bottlenecks or delivery delays can mean missed opportunities and big costs.

Globalization adds to the challenge, from offshore plants and labor to outsourcing and political unrest. Supply chains, too, are more complex to manage. Companies not only buy more of their raw materials, components and design services from far-off third parties; they also rely on contractors to coordinate the movement of their goods.

Maintaining competitiveness and sustaining profits isn’t easy. When timing and quality control are paramount, manufacturers have to be able to plan, analyze and measure results across the enterprise.

Business intelligence and enterprise planning — the core capabilities of performance management — can help manufacturing organizations monitor operations, optimize processes and stay on top of market changes and opportunities, so they’re in a better position to manage both supply and demand.

Managing Internal and External Risk

In the interest of cost and competitive pressures, companies now depend on lean and highly outsourced supply chains to feed their operations. But have efficiency gains also brought higher risks? Many experts think so.

Organizations are still vulnerable to events or disruptions that impact their supply chains — everything from cross-border issues and labor unrest to natural disasters and fires, even bankruptcy. Soaring fuel prices today have had significant impact on manufacturers whose global supply chains are dependent on transporting goods across wide expanses in the quickest and most cost-effective manner. For those that depend on a single supplier, one disaster can bring business to a halt. On the other hand, having too many suppliers doesn’t guarantee immunity, either. Markets, too, punish companies that are hit by supply chain disruptions. In the short term, share prices can drop, and the effects may last longer.

Thankfully, there are ways to manage supply chain risks. One of the best strategies is gaining complete visibility across the chain, so you know where and when problems occur and can take informed action.