Manufacturers are definitely the underdog in the game of consumer buying. With ever increasing pressure to reduce production costs coming from both global competition as well as consumers with powerful voices, manufacturers are really under the pump.
The year 2009 was tough. Different sectors of economies all over the world were still reeling from the effects of the GFC, and manufacturing was no exception. In Australia, the ABC reported that manufacturing made up only 9% of GDP, down from 27% in 2008.
Micrologistics is a relatively new idea in supply chain circles. While it may conjure up images of miniscule people maneuvering their wee bags of produce to their tiny cottages, in practice the idea is actually much bigger.
“We always overestimate the change that will occur in the next two years and underestimate the change that will occur in the next ten. Don't let yourself be lulled into inaction.”– Bill Gates.
Manufacturing is littered with buzzwords at the moment, the promise seemingly outweighed by the hype.
At the end of last year, The Australian Industry Group (The Ai Group), released their annual business strategy report.
The Australian manufacturing industry is changing rapidly. It has to contend with the tides of globalisation, rapidly developing technology and increasingly sophisticated customers who are demanding more bang for their buck. Manufacturers need to find the sweet spot, walking a fine line between keeping costs lean and allowing for flexibility. Otherwise, the consequences can be dire.
A decade or so ago, there was a popular game show called The Weakest Link. At the end of each round the host of the show would acerbically remark to the contestant with the lowest score: ‘You are the Weakest Link. Goodbye.’
In all businesses, it is important to strategically change and adapt with technology. What at first will delight your customers will soon become the baseline expectation.
It seems that a new technology fad is entering the market every week. No industry is immune to it, but in technology and manufacturing spheres, the novelty and excitement quickly give way to fatigue, disappointment and cynicism when the technology that has promised so much delivers so little.
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