Top Five Challenges for Manufacturing in 2020

As supply chain continues to grow and become more globalized and interconnected, there are various concerns and challenges that arise as we become more complex. One of the largest concerns pertaining to supply chain is the concept of globalization as the novel coronavirus is now making its way across the world.

As many manufacturers have put their eggs all in one basket, into China, this has become quite challenging for companies such as Apple and others that primarily produce within China and ultimately had to halt all operations while the country was in lockdown. Needless to say, macro factors have thrown the entire world a curveball within supply chain and has brought everything to a dead stop. As manufacturers are counting down the days until we can get back to normal, and with growing expectations of a recession, there are various challenges that are arising as we make our way through 2020. Therefore, here are the top five manufacturing challenges for 2020. 

Top Five Challenges for Manufacturing in 2020 

The top five challenges pertaining to manufacturing in 2020 include the following: 

• Supply Chain Collaboration - Collaboration within supply chain has always been an issue that all manufacturers are trying to perfect. By far one of the most important aspects of supply chain, collaboration is absolutely essential and is a growing challenge due to the complexity of supply chains. There are viable concerns pertaining to data ownership, data monetization, pricing pressures, and the fear of efficiency. 
• Trade War - Narrowing profit margins are another viable concern amongst modern-day manufacturers as trade wars continue to be prevalent. Geopolitical pressures will affect various industry sectors with manufacturing being no exception. Once again this is due to increased globalization and sourcing factors and products that are sold globally. Manufacturing companies are considering strategic changes, especially during this time of the coronavirus, and how to soften the impact of trade restrictions and trade wars. Trade wars are more than likely going to become a pretty substantial topic in the near future. 
• Automation - Automation and robotics is a huge component of manufacturing. When most people think of manufacturing, their mind immediately goes to robots creating products and mass production. As automation continues to grow and technology becomes more advanced, many manufacturers may find themselves falling behind much larger and sophisticated companies. Ultimately, preparing a workforce for this is by far the biggest challenge. Educating and training employees to be able to work with new technology and equipment is a rather substantial challenge that companies will find themselves running into. 
• Supply Chain Visibility - Having thorough insight and visibility into your operation is a key factor for improving your overall operation. If manufacturers are seeking to meet soaring customer demand and ensure for transparency, then utilizing real-time and granular visibility throughout your supply chain is a must. This can be conducted through integration of various softwares such as APS, ERP, or MRP and ultimately being able to locate areas within the supply chain process that are in need of efficiency increase. 
• Coronavirus - As mentioned previously, the coronavirus is by far the largest concern for supply chain in the early months of 2020. With an uncertain outcome, many manufacturers are uncertain as to where this is going to lead us further down the road. Keeping an eye on the quickly changing situation of the coronavirus and how to efficiently improve your operation to ensure that you are keeping costs low and ultimately meeting a quickly changing demand is a must. With many manufacturers not having experienced this in the past, this is by far one of the most critical and crucial times for figuring out a plan for your supply chain and the future of your company. 

A software that can aid with these concepts and the the rapidly changing situation of the coronavirus is PlanetTogether’s Advanced Planning and Scheduling (APS) Software. Advanced Planning and Scheduling (APS) Software ensures that you have thorough visibility into your manufacturing operation and aids with efficiency increase. As the coronavirus is changing how much demand is needed, whether it is more or less, APS can aid with the demand planning process and aid with cost elimination and excess inventory costs. Advanced Planning and Scheduling (APS) Software can be an integral part of your operation during this interesting time. 

Advanced Planning and Scheduling Software 

Advanced Planning and Scheduling (APS) software has become a must for modern-day manufacturing operations due to customer demand for increased product mix and fast delivery combined with downward cost pressures. APS can be quickly integrated with a ERP/MRP software to fill gaps where these system lack planning and scheduling flexibility and accuracy. Advanced Planning and Scheduling (APS) helps planners save time while providing greater agility in updating ever-changing priorities, production schedules, and inventory plans.

• Create optimized schedules balancing production efficiency and delivery performance
• Maximize output on bottleneck resources to increase revenue
• Synchronize supply with demand to reduce inventories
• Provide company-wide visibility to capacity
• Enable scenario data-driven decision making

Implementation of Advanced Planning and Scheduling (APS) software will take your manufacturing operations to the next level of production efficiency, taking advantage of the operational data you already have in your ERP.