Outsourced Manufacturing Visibility: Mitigating the Risks of Supply Chain Delays

Updated: Jun 19

2 Mins Read | Shot Count | Cycle Time | Third Party Manufacturing Visibility

One of the reasons why manufacturers should have real-time tooling data (shot count and cycle time) is because it provides forward visibility over production schedules. Visibility, when applied to manufacturing production and supply chain management, means knowing where your component parts are at any point in the supply chain. Even if your supply chains are disrupted, with forward visibility you are able to mitigate the overall damage.

Visibility is imperative for dealing with unexpected situations, problems most people never see coming. For example, global OEM A outsourced a crucial component production to a supplier in Brazil. Only later, well past the expected delivery date, did they learn that the suppliers were unable to fulfill the order. Many reasons could be behind this such as labor strike, power outage, disorganized management, tool or machine breakdown, overcapacity, high scrap rate and many others.

Although the company attempted to salvage the situation, with little data (shot count & cycle time) about their tooling at the supplier – and thus very little visibility – they were unable to know how many component parts had been made. Also, though the OEM needed to ask their other suppliers to pick up the slack, poor visibility prevented them from knowing exactly how much their other suppliers had already produced and how fast they could produce a new order of goods.

The result was a logistical and organizational nightmare, with the OEM unable to make informed, effective decisions. The OEM had no visibility over their external production, for they did not have any reliable, up-to-date information about their suppliers’ manufacturing activities. With no data and no visibility, it seems almost inevitable that our client would have been so helpless in the face of this random disruption in their supply chain.

What is especially worrying is that this problem exists across various industries and countries. In Deloitte’s 2018 global chief procurement officer (CPO) survey, 65% of top procurement leaders reported having little or no visibility over their supply chains. 65% of the world’s best procurement officials are facing the same risks as our client did.

Live Tooling Performance Data at a Supplier

Knowing how much your manufacturing partners have already made, and how fast they can make it, are the two metrics OEMs need in order to gain visibility. Tracking these performance metrics are the first step in preparing for the worst forms of irregular, unexpected interruptions in production. It is imperative that manufacturers find a way to measure this data accurately, to mitigate the risks and damages of the unexpected.

Click here to request case studies on how large global manufacturers leveraged a simple IoT solution to mitigate their supply chain delivery risks.

About eMoldino
Contact Us

Subscribe to our weekly round up of tooling operations best practices, resources, and news.

9F Daishin Finance Center 343, Samil-daero, Jung-gu Seoul, South Korea 04538
United States
(+1) 313 879 0899
United Kingdom
(+44) 20 8638 5788
South Korea
(+82) 70 7678 6388

©  Copyright 2020. eMoldino. All rights reserved.