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The Manufacturing Industry
Manufacturing companies have made significant advances as of late but the industry still remains very capital-intensive. While fixed costs are high, it is the management of variable costs that can make or break an operation.
“Problems arise when the operation is disconnected from the demand signal.Significant portions of the variable costs are product related – labor and material. Problems arise when the manufacturing operation is disconnected from the demand signal. This leads to inefficiencies in variable cost management, which can hinder profits.
“The material requirements for configurable products can fluctuate wildly based on the actual configurations that need to be built.The typical manufacturer produces according to a push-type model (Make to Stock). Materials are planned based on the “best guess” of what they expect to build in that period. If the plant manufactures configurable products, the material planning is done using “phantom configurations.” However, the material requirements for configurable products can fluctuate wildly based on the actual configurations that need to be built.
Extended supply chains caused by offshore manufacturing further distances the production from the demand signal. This significantly increases inventory levels and ties up capital, making the total operation very costly.
How Emcien can help you:
Emcien’s pattern-based analytics applications enable manufacturing companies to overcome the challenges above by connecting the multiple nodes of the supply chain to the demand signal with the level of visibility needed to confidently make critical business decisions.
VP Marketing/Product Managers
- Collaborate with sales and supply chain to optimize product mix
- Align various business units based on Predictive Analytics and Quantified Decision Making
- Real-time monitoring of demand and market changes
- Improved profitability due to maximum SKU efficiency
VP Engineering
- Connect engineering and NPI decisions to demand signal
- Predictive Analytics to determine how the new product mix will be accepted by the market
- Real-time monitoring of demand and market changes
- Reduced engineering costs
- Improved profitability due to maximum SKU efficiency
VP Operations/Manufacturing
- Collaborate with sales and supply chain for an optimized lean product mix
- Forecast with knowledge of configuration mix and demand signal
- Align lean operations with customer demand signal
- Higher turns and faster response to orders
- Improved quality and higher repeatability
- Improved manufacturing efficiency
- Manufacture in the US profitably
VP Supply Chain
- Collaborate with sales and product management for an optimized lean product mix
- Align product mix with demand signal
- Improved profitability
- Increased supply chain velocity
VP Sales
- Automated tools to increase sales rep productivity
- Guided selling based on demand
- Collaborate with product management for an optimized lean product mix
- Improved sales efficiency
- Increased sales
- Faster sales cycles
Emcien’s pattern-based analytics applications:
