Top challenges faced by manufacturing industries
India is a 1.4 billion population country. The consumption capacity of manufactured goods is high and India is also a big exporter of various raw and finished goods.
Now the problem is the manufacturing entity demand is more hence competition is growing accordingly in the market.
As a manufacturing unit, it needs to be aware of complete production capacity as per the demand that means too much or too little stock on hand is difficult to deliver.
When a manufacturing unit manufactured a lot of products more than that current demand that extra products become a liability to a company which directly impacts the company’s finances. On the other hand, if you manufacture less than demand then you are losing the opportunities.
What are those challenges faced by Manufacturing Industries? -
1. Demand forecasting: -Anticipating future demand today with the help of comprehensive reporting systems with technology-based ERP. The biggest issue is that they lack know current trends and future movement predictions. As a result, their products fall short of client expectations or more on the inventory, resulting in fewer sales.
Manufacturing companies should enroll in feasible reporting systems that may help them to target sales, predict how much and which products they should manufacture in the upcoming time according to client demand and market opportunity.
To target a predicted demand is too difficult but if the Manufacturer will employ reliable reporting & forecasting systems that may help to reach the actual target.
How a manufacturing plant can employ this technique? An expert in the field of demand & forecasting systems can help you. So, you can connect to SolutionBuggy.
2. Inventory management & control: -Handling Inventory manually is very difficult, particularly for big businesses. Manual stocks arrangement and checks are inefficient and we found errors normally, which can be a bad result of inaccuracies, shortage, and excess material in the inventory.
There should be a proper system to identify the most priority raw/finished material quantity and less requirement raw/finished material quantity as per the demand. So, an Inventory management system can be the best solution to manage all the inventories and stocks in a proper systematic manner.
Poor stocks/inventory management is a loss of 50% of manufacturing cost and no firm wants this.
Want to know how to create a digitalized inventory management system? Connect to SolutionBuggy.
3. Production Efficiency problem: -Entrepreneurs seek the best quality product in quantities by reducing the production cost, which is again big to consider to maintain good production efficiency. To do that a good execution strategy, formulation strategy, and time management strategy are required.
By implementing advanced technology processes & systematic workflow is one of the effective strategies to boost efficiency. These include time-bound production, labor cost reduction, reduce raw material, excess production & streamlined workflow.
How you will do it? You can’t do it alone because this is the biggest process in an Industry. Experienced consultants can set up this process which will run as per instruction.
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4. ROI: -Return on investment should be always greater than the cost involved in the complete process otherwise it will be difficult to meet the profit circle.
Especially in manufacturing lot of points connected to it, if a firm doesn’t operate its production, then they will be lost for a long time that leads to being shut down in the future.
Most small and medium companies are facing problems to increase their ROI by delivering lesser SALES, Targeting wrong or competitive market & inappropriate advertising.
How to develop an operational strategy that can make good sales, more revenue, lower operating cost, larger net profit, sound employee retention, and better customer satisfaction. The company’s overall revenue over quarters and years is to be benchmarked so a steady growth can help them to lead for a longer time in the market even in the competition also.
Now the question is how to make an investment strategy that can ensure a good budget estimation, market segmentation, production and supply chain cost estimation, On-NPA management, inventory cost, etc.
5. Technology adaption: — Manufacturing is the backbone of large economies such as the U.S., Europe, China, India, or Japan. Small and medium-sized enterprises are very flexible in adapting new technologies and catering to niche markets, while large manufacturing firms are better on scale efficiencies but slower in adapting innovations as well technology implementation due to a large presence.
Therefore Industry 4.0 facilitates the balancing act of internal and external complexity by shifting traditional production systems from a structured centralized control to decentralized control. It is a specific deployment of an advanced manufacturing strategy. The core principles of Industry 4.0 are modularization, self-regulation, and digital integration across business functions and within and beyond the organizational boundaries.
Conclusion: -
The above aspects are very important and crucial for a successful company that an entrepreneur couldn’t avoid.
If you and your company are facing such problems you can connect to the best manufacturing consultant.
SolutionBuggy is a market leader in the manufacturing consulting space by providing a wide range of manufacturing consulting services from product identification to complete turnkey solutions including all the above points. We have successfully completed more than 2000+ projects in different areas of this industry. Connect with us for better growth and the future.
If you want to discuss with SolutionBuggy’s experts then connect now: https://solutionbuggy.com/register