Expanding the business to keep up with supply and demand is a great thing. But you have to remember that the growth of a business needs more resources and this is exactly why you will need the global vendors. Managing the supply channels within a global economy has its own opportunities and pitfalls as well. From day one, it is important that operations management must be formatted considering the mitigation of risks as well. When it is about a global manufacturer and supplier, things can get pretty complicated. There can be daily changes among the suppliers of different programs.
The task of handling all manufacturer and supplier information can become challenging and cumbersome. For the complex manufacturers, the definition of quality is predicated on how they are aligned with the diverse and unique requirements of the customers while being in compliance with the regulatory requirements. To keep the complete value chain of a business well orchestrated and focused on the manufacturer and supplier quality needs, it is essential to have a consistent strategic plan. Once the supply chain goes global, there are certain regulations, constraints and best practices which will help in keeping the operations smoothly. The intent of this blog is to offer seven key practices for a global manufacturer and supplier so that the business can gain a competitive advantage.
A Global Manufacturer and Supplier Needs an Initial Plan
First of all, a global manufacturer and supplier should have a plan to develop a foundation of continuous supply and improve the quality management. A complex manufacturer has to contend with an exponentially increasing number of the regulatory compliance reporting necessities. Starting from the regional requirements throughout different nations to the compliance needs of specific industries, any global manufacturer and supplier has to offer several layers of audit data within their supply chain systems. The reason it is so essential for the complex manufacturers is because the new product development and introduction (NPDI) processes offer more than 60% of the overall net revenue. For a global manufacturer and supplier who are competing in the commercial market needs to define the supplier quality management strategies which will help in new successful product launch and development.
Attaining Competitive Advantage by Network Transformation
Designing and then operating the effective networks is one of the most important advantages of a global manufacturer and supplier. The networks are getting more and more complicated with the passage of time and this is exactly why a global manufacturer and supplier shall have to “make the right things in the right time for the right places”. To do this, a global manufacturer and supplier must have the right people along with a resilient supply chain. Companies have undergone rapid global expansion so that they can have access to the cheaper resources and new markets. At the same time, the firms also needed to become more specialized so that they can master the complex technologies. The specialized firms are located all over the world. The optimization of the complex networks will open up an opportunity to deliver according to the strategic aim of the global manufacturer and supplier organization. It will also help the organization to deliver more and more innovative products and services at low cost, respond quickly to the rapidly changing market conditions and also secure access to more and more resources. All these things considered, network transformation can offer a competitive advantage.
Formatting an Effective Network
Speaking of an effective network means, a network which has its assets in the right places, is efficient, offers an agile and resilient supply of network and finally the one which has the right process and people to run it. To form an effective network you can opt for the following four-step approach where you can use the combination of decision tools and data analysis enabled through senior stakeholders and workshops. This will help you in comprehending the key drivers and also help a global manufacturer and supplier to make an informed decision. The four-step approach includes:
Context mapping and landscaping used for the clarification of external drivers and identification of the potential opportunities.
Analyzing current networks in the business context so that the global manufacturer and supplier can validate the opportunities identified in the above practice. This can be done by checking how the assets are organized and taking into account the capabilities for managing the team.
Designing new networks which will capitalize the opportunities.
Developing new capabilities which are necessary for the global manufacturer and supplier through executive and professional development.
Selecting the Right Approach
The design process might be able to identify certain areas where there is room for improvement. For instance, the design process might help in production, product-service or supply networks or prompt a complete network transformation project. The global manufacturer and supplier can opt for the global production footprints for reducing the cost and enhance the responsiveness. The organization can also benefit from an effective end-to-end supply chain. A global manufacturer and supplier organization can also design global value networks for both the disruptive and emerging technologies. Finally, the organization needs to be wary of the potential network challenges that might happen in future.
Managing an End-to-End Supply Chain
Since the supply chains have become more disrupted and fragmented, it has become difficult for a global manufacturer and supplier to manage them. The process of delivering the final product to the customers can involve multi-tier networks of partners for global distribution. This is why innovation needs to be faster and much more effective than it was before. With a well-designed supply chain network, it will become easier for a global manufacturer and supplier to cater the strategic objectives of the company. The main challenge is to identify the “where” and “why” the process might face a setback. Thus, a global manufacturer and supplier will need proper mapping tool for visualizing and designing the complex supply chain.
The organization needs a total supply network for analysis and capturing of micro-level data like the sales volumes, geographic dispersion, the lead times and also the cost allocations.
The next thing is analyzing the unit operations of the major units for revealing the opportunities and the potential flaws for the present network design.
The organization needs a product value structure to check out the parameters like the product architecture, product portfolio, innovation opportunities, costs, rates of innovation which can affect the ideal supply chain structure.
Finally, the global manufacturer and supplier will need a supply network relationship to map the roles and relationships within the key network partners.
Forming a Global Value Network for Disruption
Because of the disruptive technologies, the changing market conditions and the new business models, it can become a challenge for both the companies and policymakers. A global manufacturer and supplier should map the existing ecosystem. During the emergence of a new technology, it is important to have a radically different approach. This will help in understanding the new technology and offer an idea how to configure the value chain. The approach to global value network design will reflect the different stages of network development and also the trends which will redesign the drive.
It includes tracing the evolution of the network from the nascent stage through the experimental process to a final stage. The global manufacturer and supplier need to make use of different design tools to comprehend and configure the global value network for responding to disruption. Finally, it is important to prevent the disconnection of semi-independent subsystems. A global manufacturer and supplier need to sort out the critical subsystems and understand the intrinsic characteristics which will ensure the systematic integration and enhance the performance of all players within a value network.
Supply Networks for Complex Service Providers
Different supply networks are adding a service dimension within their business models for creating new revenue streams and also get closer to their customers. For a lot of companies, this might not be so simple. Considering a network perspective it will add a significant complexity to an already complicated network. To address these challenges, global manufacturer and supplier should review the configuration of the present network and design a new one which will align in a better way with the business objective. Extending the work on end-to-end supply chains for developing a new strategic approach to design and integrate multi-organizational service network is also an important step for a global manufacturer and supplier.
Having people with the right skills and knowledge for understanding and managing the global networks and who can also respond to a change when it happens, is one of the most important components for a global manufacturer and supplier organization. ECpages is one of the best B2B online directories that helps businesses expand effectively in the global markets. If you are on a quest for the top class global manufacturer and supplier, then you need to visit the contact page of ECpages and get in touch with them. This is the best company that can help you in your quest. If you want to know what your options are, once you contact ECpages, then you need to check out their My Options page where you will get all the necessary details.
A lot of medium sized B2B marketplaces are find More
For global online sourcing, it is really import More
It has been predicted that B2B marketers shall More
Modern day business modus operandi has changed More
Expanding the business to keep up with supply a More