**London**: Mid-sized manufacturing companies are implementing innovative strategies to enhance supply chain efficiency and customer experience, focusing on accurate forecasting, supply chain optimisation, and new go-to-market models, including subscription services, amid increasing pressure to improve data quality and operational resilience.
Mid-sized manufacturing companies are currently facing unique challenges in a competitive business landscape, particularly in relation to their supply chains, which are proving to be pivotal in driving revenue and enhancing margins. Amidst these difficulties, organisations are exploring innovative approaches to improve their operational efficiencies and customer experiences.
Brooks Noonan, Industry Solutions Principal – Manufacturing at NTT DATA Business Solutions, emphasises that these companies are focusing on three primary goals to navigate their supply chain hurdles. Firstly, they are striving for more accurate forecasts. By utilising unified systems that project demand more effectively, businesses can ensure they have the right products available for customers precisely when they are needed, facilitating better revenue management.
Secondly, there is a significant push towards optimising the supply chain. Noonan suggests that the use of advanced inventory optimisation tools is crucial for managing stock levels effectively. By effectively analysing inventory, companies can reduce costs while maintaining necessary service levels, ultimately leading to enhanced profit margins.
The third area of focus is the adoption of new go-to-market models, including the emerging ‘as-a-service’ or subscription-based frameworks. As Noonan elaborates, he works with a press manufacturer who has transitioned towards this model, essentially providing their product at minimal upfront cost while maintaining service agreements for ongoing maintenance and replacement parts. “A service-based model brings more revenue over time,” he affirms, noting that this innovative approach is gaining traction among mid-sized manufacturers seeking sustained revenue growth.
The trend towards manufacturing as a service is notable for several reasons. It not only promotes revenue growth over an extended period but also enhances the overall customer experience, as manufacturers can offer a comprehensive service that reassures clients their needs are fully met. “This gives the customer peace of mind, knowing that their supplier is covering the entire product range,” Noonan adds.
In the context of digital transformation, manufacturers are uncovering solutions to address supply chain issues by integrating disparate systems and data. Noonan highlights the role organisations such as SAP play in streamlining operations by providing an integrated view of the supply chain, which helps in managing lead times more effectively and responding to supply chain disruptions.
However, he cautions that challenges remain, particularly regarding the integrity of data. Clean, accurate data is essential for any successful digital transformation. “Making sure you’ve got clean data going into the system provides a more optimised overall digital transformation landscape,” Noonan states. Equally, managing change within organisations presents an obstacle, as adapting to new technologies and systems can be difficult for employees.
SAPinsider recently highlighted the growing need for supply chain resilience. Research indicates that evolving customer demands and the necessity for new operational capabilities are critical factors prompting manufacturers to enhance their supply chain resilience. With 79% of respondents in an SAPinsider survey citing supply chain data quality and harmonisation as priority requirements, the implication is clear: strong, reliable data underpins effective supply chain management.
Digital transformation initiatives, supported by SAP partners such as NTT DATA Business Solutions, can significantly bolster data connectivity and responsiveness through tools like SAP S/4HANA. By dynamically updating lead times and fostering operational efficiency, manufacturers can better navigate today’s volatile supply chain environment.
To effectively transition to systems like SAP S/4HANA, manufacturers must prioritise clean, accurate data availability and actively manage organisational change. Preparing employees for the challenges posed by new technologies, many of which incorporate AI-driven tools, is equally critical for successful deployment and operational success in the future.
Source: Noah Wire Services
