Manufacturing a More Agile 2008
21 Jan 2008
Eight Major Trends That Will Influence Manufacturing Companies This Year
As manufacturers head into 2008, they are anxiously wondering what lies ahead. With a record number of news stories in 2007 focused on recalled products, raw material shortages and industry consolidation, the list of challenges grew a little longer. Manufacturers continue to see an impact on their entire business model as the world shrinks and flattens, and centers of manufacturing activity shift to new locations. How can manufacturers prepare for the uncertainties of the future while becoming even more agile?
“Manufacturing companies are forced to shift their strategy across the board in order to thrive in our flat world,” said Ben Langlinais, EDS director of global manufacturing industry solutions. “Agility and the need for an adaptive enterprise will remain a top priority for manufacturers around the globe.”
EDS, a leader in providing IT services to manufacturers, predicts that these major trends will influence companies in 2008.
- Global Integration and Collaboration – With accelerated globalization to tap emerging markets for new sources of revenue and exploit low-cost regions for production capacity, manufacturers are experiencing an increased risk level in their supply chain, product development, the creation and management of new alliances and their global workforce management.
- Moving Beyond Lean – In addition to the continued focus on lean, challenges such as shorter product cycles, increased customer demands, the pursuit of lower-cost locations and the race to new markets all require that manufacturers move towards an agile and adaptive enterprise while creating a new culture of flexibility.
- Going Green – Growing demand for natural resources including oil, steel and resin have created a new generation of environmentally conscious customers who are demanding greener products. These concerned consumers are forcing manufacturers to change their design, production processes and product mix.
- Regulatory Pressures – Government and industry regulations, including environment, safety, corporate governance and product performance, are being enforced around the world with different standards. Different standards have created a new criticality for data tracking, including a need to collect and report more information and an increased tracking of products.
- Proliferation of Electronic/Digital Content – The continued increase of electronic or digital content in products is creating a new level of security concerns and product sophistication, while simultaneously causing skill shortages and a demand for new competencies.
- Product Commoditization – While customers want products they feel are customized to their own unique needs, the pressure on cost and quality continues to increase. Products are becoming commoditized at a much faster pace due to growing consumerism, forcing manufacturers towards demand-driven manufacturing.
- Service Focus – The shift from a product to a service focus is forcing manufacturers to gain real-time market insight by working closely with customers. While client service remains a priority, manufacturers have a need to collaborate with customers in addition to their existing supply chain.
- Convergence of Business and Technology – While outsourcing of non-core processes continues to grow, the focus will shift towards tighter alignment of business and technology. Innovative use of information and integrated manufacturing enterprise will be key to gain a competitive advantage.
EDS has significant industry-based knowledge in the aerospace & defense, automotive, high tech and industrial manufacturing segments, with more than 30 years of experience working with manufacturers. More than 25,000 EDS employees serve over 220 manufacturing clients in 40 countries. Contact us today to learn how EDS can help your organization become more agile in 2008.