4. Know what's where, and when
Central to ensuring inventory usage is maximised, which IoT aids with, is the ability for manufacturers to increase visibility to all inventory levels. This includes static materials and maximising the value of, and gaining real-time visibility into, inventory in-transit. Equally important is the ability for manufacturers to become resilient to exceptions and disruptions. This will enable manufacturers to eliminate short term forecasting and become near term demand-driven, also known as 'capacity for resiliency.'
Central components of this capacity for resiliency are supply chain risk management and enterprise quality management and in 2016, an incorporation of 3D printing. This is part of an innovative postponement strategy to ensure specific products can be utilized for specific demand at the last possible time, ultimately increasing the total value of held inventory.
5. Collaborate to Innovate, Cautiously
Manufacturers have increasingly relied upon suppliers to provide high levels of service and in 2016, they will begin relying on them to provide product and service innovations that support customer centricity, operational excellence and supply chain resiliency. This will require a deeper strategic understanding of unique and standalone capabilities, capacity, and a comprehension of the capabilities that can be delivered by a group of partners and the enterprise.
On this basis, manufacturers will transition their supply chains to supply webs where partners are interdependent, co-innovative and collaborative with each other on both a tactical and strategic nature in order to create shared and distributed value.
6. Protect your property
According to analysis by Netnames, counterfeiting increases by 15 percent annually and already costs manufacturers a staggering US$1.8 trillion dollars in lost annual revenues. Unlike previous years, the protection of both intellectual and physical property will become paramount in 2016, especially as manufacturers, and their partners, become more connected and digital. Information sharing is critical to successful collaboration.However, protecting schematics and technology advances from piracy or theft from suppliers will force many manufacturers to make some very difficult decisions.
Manufacturers will take direct action to monitor partner production outputs, component and materials orders and take a concerted effort to track certified products to quickly identify the root causes of found counterfeit goods. These efforts have not been done in earnest until now.
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