Why Should You Monitor Contract Manufacturing for Parts Delivery Forecasting
Updated: Nov 25, 2020
SCM in Contract Manufacturing... Wake Up!
You’re contract manufacturing. You’ve outsourced your production to suppliers all around the world. Do you or do you not, at this very point in time, know exactly when your parts will be delivered? Are you sure they’ll arrive in the right amount, at the right time?
That’s the thing. If you’re contract manufacturing, you’re managing people who manufacture for you. The physical, direct act of production -- you’re in charge of that only as far as you’re in charge of a spreadsheet or a report detailing your suppliers’ activities. In the case of a total production SNAFU, chances are you won’t be able to react quickly enough to deal with the resulting delay and supply chain disruptions.
Doesn’t this make you the least bit nervous? Especially what with COVID-19 running hereabouts, forcing you to stay at home, without being able to personally check up on supplier facilities… is this not cause for a little concern? How do you plan on reconciling the need to visit suppliers in times of crisis with the “new normal” of social distancing and travel bans?
What you need is “over-the-shoulder” monitoring of your suppliers, the better to predict deliveries and supply chain demands. What you need is full supply chain visibility, the kind you only get from tracking your contract manufacturers on a data-driven analytics platform. That way, you don’t have to micromanage or travel to supplier facilities; you can easily and remotely manage your supply chains online, with neither the disruption risks nor the travel (or pandemic-related) risks.
What do Supply Chain Professionals Want?
Simply put, supply chain managers care about on-time delivery. You’ll want to know if your ordered parts will arrive at the right date, in the right quantities, at the right price. The best way to know these is through real-time, predictive analytics that give full visibility over the supply chain.
According to a study by the Council of Supply Chain Management Professionals, 93% of shippers and 98% of logistics firms believe that supply chain decisions need to be driven by data; 71% believe that big data will improve performance and quality. In the real world, a growing number of supply chain professionals are adopting predictive analytics, with the number growing from 17% to 30% respondents from 2017 to 2019, according to analysis from annual MHI Industry Reports. The same report says that 90% of respondents believe predictive analytics “will have an impact on the supply chain in the next 10 years”.
In short, forward-looking supply chain professionals should use digital innovations to monitor their supply chains. Whether through some form of IoT technology, CPS, or analytics software, a growing number of professionals are recognizing a need for data-driven, predictive analytics for supply chain management.
Where our solution finds its niche is our unmatched ability to monitor and forecast supply chains involving contract manufacturing.
“Predictive” Delivery for Contract Manufacturing
How do we help OEMs? We help them by monitoring their contract manufacturers’ part deliveries. We give OEMs the ability to forecast delivery delays and help them mitigate the risks of supply chain disruptions.
Our analytics platform does this by: first, tracking real-time production data from contract manufacturers; then second, using this data to create “predictive delivery” analytics. With the resulting array of KPIs, reports, and alerts, our clients can react to delivery delays or disruptions faster and more efficiently.
One look at the platform, and you’ll know how many parts have already been produced and how fast your suppliers are currently producing. The platform will alert end-users to potential production delays; these alerts may be received by OEMs and suppliers alike. In the case of a sudden supplier emergency, end-users can also re-allocate production responsibilities to other suppliers through our system, ensuring that parts are delivered on time and the supply chain runs smoothly as ever.
Predict delivery by gauging your suppliers’ production rates. Ensure on-time delivery through over-the-shoulder data monitoring and transparency, and improve your reactivity and risk mitigation in cases of supply chain disruptions. With the data accessible on a digital system, there’ll be no need to inspect facilities in person.
Tell us about your own SCM pain points over a short call with us, with zero obligations. Ask for a quick showcase of our delivery-monitoring analytics; see how we create value for top-tier manufacturers worldwide.