A shift in strategic focus can benefit your business and the planet.
As manufacturers continue to navigate increased supply chain challenges and disruptions, it’s more necessary than ever to take steps to build a resilient and reliable supply chain. Seventy-five percent of respondents surveyed in our second annual “Voice of the Manufacturing Manager 2024" report say supply chain resilience and sustainability are very important. But building a resilient and sustainable supply chain takes more than wishful thinking, as our latest report shows. From those in the field making it happen, here are some of the initiatives they’re taking and the challenges they’re overcoming in building a better supply chain.
Adapting supply chain strategies to improve resilience and sustainability is a top priority for manufacturing leaders and their businesses. Here are some great examples of how they’re currently making changes to do business better:
Digital tracking tools for improved visibility: Manufacturers know that greater resilience comes through having greater visibility into their supply chain: it’s vital to know where materials are in the process, to spot any delays or disruptions happening along the way, and to have immediate access to transport estimates for delivery. Smart businesses are turning to digital tracking tools to support that visibility, like having Internet of Things (IoT) devices along the supply chain report real-time data, or using blockchain to increase visibility throughout the company.
Adopting sustainable materials and practices: Sixty-three percent say sustainability is a higher priority than ever at their company. They're taking steps to improve environmental awareness by sourcing more sustainable materials for their manufacturing products, and by introducing planet-friendly supply chain practices like switching energy sources, reducing their carbon footprint, or sourcing from more sustainable vendors.
Diversifying suppliers: Manufacturing leaders know they can create more resilience in their supply chain by not relying on just one vendor. They're diversifying their suppliers so that if there's a delay or disruption for one, they can easily switch their sourcing and not impact essential processes farther down the line.
Manufacturing leaders are turning to technology to help improve their supply chain resilience and sustainability, and provide the visibility, tracking, and insights to make the adjustments they need. They're implementing both AI for predictive analytics as well as for inventory forecasting and planning, which will help them better optimize their supply chain resources. IoT devices along the supply chain can help with real-time tracking, and blockchain can help with increased transparency into the supply chain as well.
Building a more resilient and sustainable supply chain isn't an easy task, and there are a few hurdles that manufacturers will need to overcome to reach their goals. The most significant among these is cost, as forward-looking businesses need to have the budget to invest in initiatives like solutions for AI-powered analytics, installing IoT devices, and implementing tracking tools. Manufacturers may also face regulatory challenges like helping ensure compliance across an international supply chain, as well as infrastructure issues like a lack of existing technology to increase visibility and efficiency.
In addition to existing efforts, manufacturing leaders need to map out their investments and initiatives, in order to enhance their supply chain resiliency and sustainability. Over the next year, respondents say their businesses plan to invest the most in training and development, so they can not only build a sustainable workforce but also to increase employee awareness of supply chain strategies and technology.
Additionally, companies seek to invest in more sustainability initiatives, like reducing their carbon footprint by turning to sustainable energy sources for their operations. Finally, they want to build strategic partnerships across the supply chain so that everyone can work on together on achieving a common goal.
Taking the necessary steps to make supply chains more resilient and sustainable is no longer a nice-to-have but a need-to-have. Manufacturing leaders should place initiatives like investing in more technology, adopting more sustainable practices and suppliers, and using analytics to optimize their efforts at the forefront of their supply chain strategies for 2024.
Read the “Voice of the Manufacturing Manager 2024” report today.
