Understand the challenges the manufacturing industry is facing and see how kwalit can help you create more structure, flexibility and control in the management of your business.
Check here the main challenges, as well as our different suggestions and solutions. To make running your manufacturing business easier, more transparent, and more profitable.
One of the big challenges for manufacturing companies is the lack of skilled workers.
The older workers are starting to retire, and the younger workers not only have a great lack of understanding of the industry, but a lack of interest.
According to The Manufacturing Institute and Deloitte Consulting LLP, 22% of manufacturing workers will retire in the next ten years.
What is the solution?
The solution is to take the initiative and help younger, unskilled workers find opportunities and added value in being a production worker.
How?
Creating for example partnerships with colleges, offering scholarships and of course training programs in your company.
When stock is not managed correctly, this will have a direct impact on your sales orders, your projects, and your production.
What is the solution?
The solution is to invest in a system that allows you to automate the management of your stock and schedule your projects.
Consequently this will allow you to concentrate on scaling your business rather than being overwhelmed with management problems.
Consumer habits are constantly changing.
In recent decades, we have seen the phenomenon of the low price. In other words,
customers compared prices and looked for the lowest prices. This caused companies to look for many foreign-made products in order to be able to compete in the market.
Today, however, the trend is changing. Today’s customers want quality products, made ethically, and they also want to understand the whole process behind the products.
What is the solution?
The solution is to understand the market better.
There are many online sources that can help you understand the trends and forecasts facing the manufacturing industry. Only with a correct market analysis can you prepare your company for the future.
Another major production challenge, related to consumer trends, are the issues related to direct sales to consumers.
In other words, as more people use e-commerce to make their purchases, manufacturing companies have been able to eliminate middlemen and sell their products on their own.
However, more control also means more responsibilities and more risks.
What is the solution?
As companies begin to handle everything from marketing and purchasing to production and sales management, it is necessary to invest in software that can help centralize your entire business.
This is why many manufacturing companies turn to multi-channel production management software to overcome the challenges and have full control in their hands. This will help optimize productions and manage the various sales channels.
One of the big challenges in the industry is to decide when to scale up the business.
If you decide to scale too early or too late you can seriously damage your business.
So how to know? What is the solution?
First, you need to understand who your customers are, understand the market space you are occupying, and then ensure that the products you are producing are perfect.
On the other hand, a quick and easy way to understand if your business is ready to scale is to understand the life cycle of your products and their performance in the market.
Today, however, the trend is changing. Today’s customers want quality products, as well as want to understand the whole process behind the products.
What is the solution?
The solution is to research the market.
There are many online sources that can help you understand the trends and forecasts facing the manufacturing industry. Only with a correct market analysis can you prepare your company for the future.
The production challenges associated with globalization are similar to the challenges of selling directly to the consumer.
Globalization gives your business more freedom to choose a supplier to purchase your raw materials from and have access to a larger audience, but with this great opportunity also comes the risk of more problems occurring along your purchasing chain.
On the other hand, the competition also has the same opportunities, which means that they are competing for market space on a large scale.
What is the solution?
1 Sell internationally, leveraging your online presence
2 Find a solution that allows you to manage the complicated logistics and trade laws of different countries
3 Optimize your production process , because a longer purchasing chain equals longer production lead times.
Traditional marketing strategies have become less and less effective.
Creating a website and waiting for it to gain traction is no longer a viable option.
What is the solution?
To increase your visibility you have to start driving traffic to your site.
To do this you must create and distribute original and useful content. Whether in the form of blogs, case studies, e-books, infographics, etc.
This will always be a challenge at any stage of your business.
However, the more your business grows, the more complicated it becomes to increase your sales and revenue.
What is the solution?
The solution is to constantly evaluate your business performance to determine if there is any way to improve your production processes and thus compensate for the increased workload.
This can be as simple as for example analyzing your stock to determine if you need to practice a different method for storing your material, so that your products are produced and shipped sooner to the customer.
As your business grows, more problems arise.
When you start selling more, your equipment gets more worn and degraded, and your overhead will increase due to the simple fact that you are producing more.
What is the solution?
Analyze your entire production flow, from the moment you create a purchase order to delivery.
Doing this can yield interesting results, such as identifying areas where problems occur on a regular basis, or finding out which tools or machines need the most maintenance.
This will help you implement solutions to deal with tools or machines that need regular maintenance and reduce your production costs.
Technological advances are happening faster and faster, which puts even more pressure on the manufacturing industry.
Pressure to create products with higher quality and faster delivery time.
What is the solution?
The solution is to invest in a solution that allows you to have aclear, real-time view of your challenges, and to automate many of your processes.
Manufacturing operations move at high speed. Things happen. Things change. Customers expect orders to be completed on time. The people involved in the supervision of all business processes need to keep track of all this. Software helps, but ideally a large number of processes should be automated. In this way, people can get the job done without worrying or wasting time on manual tasks.
Reach a new level of operational results
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