How to achieve operational excellence in manufacturing

Dołączył: 06 Mar 2024 Posty: 1

2022 was a complicated period for many companies in general and for manufacturing companies in particular. Rising prices in raw materials and energy, more expensive financing due to increases in interest rates, disruptions in the supply chain... In 2023 some of these factors are being mitigated. Inflation, for example, appears to have already peaked, while energy prices also appear relatively controlled. Interest rates, however, seem like they will continue to rise for a while, at least in Europe. The scenario, therefore, remains one of uncertainty. Both because any of the adverse conditions mentioned above can be accentuated, and because at any time some unexpected event with unforeseeable consequences can occur. Or did anyone foresee the pandemic or the Russian invasion of Ukraine? The main concerns of manufacturing companies Manufacturing companies are very aware of these risks, as reflected in a recent KPMG study focused on producers of consumer goods.

According to a survey carried out by the consulting firm, the main concerns of managers of this type of company are: Rampant inflation The prices of absolutely everything have gone up. Faced with this situation, which for production companies means more expensive raw materials and energy, the only solution is to reduce margins, pass the increased costs on to customers or a combination of both. If we talk about specific sectors, one of those that has been most affected is the agri-food industry. And this has directly affected the final consumer. To give Japan Telegram Number Data some examples, in the United Kingdom the price of food rose by 19.1% in just 1 year - taking data from March 2023 as a reference - while in Spain food inflation was 15%. .7% year-on-year in 2022. Energy prices skyrocket The months that followed Russia's invasion of Ukraine saw an escalation in energy prices that especially affected European countries. The situation became critical for some manufacturers, especially those in industries that make more intensive use of electricity, such as steel companies.

The situation reached the point that some factories had to temporarily close because they were not profitable. At this time, the international situation and geopolitics have given a respite to energy prices, which are far from the maximums reached in 2022, but are still higher than before the war caused by Russia. The digital transformation Digital transformation is a priority for managers of manufacturing companies given its potential to optimize operations and process efficiency and, therefore, increase profitability. In this sense, 63% of managers surveyed by KPMG consider that digitalization and technological tools will be a priority in their investment plans. Supply chain disruptions Another 'classic' that has been a headache for all companies that are part of the supply chain in recent years: the continuous interruptions of the supply chain. The KPMG study highlights that, although executives do not consider it as relevant a risk as in 2022, 33% of managers indicate that they have diversified their suppliers to mitigate risks, while another 27% plan to do so in the short term.

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