Business Automation and Software Blog

Demand-Driven Manufacturing That Drives Profitability (part 1)

Posted by Robert Baran on Wed, Sep 06, 2017 @ 11:00 AM

demand driven manufacturing

Fundamentals for Successful Demand-Driven Fulfillment

The concept of lean manufacturing principles, which systematically eliminate waste without sacrificing productivity, are especially important in a demand-driven manufacturing environment.

In this article, the first of a multi-part series, we will look at how demand-driven manufacturing and lean manufacturing principles go hand-in-hand. In our next article, we’ll look at demand-driven manufacturing planning, another important concept in the new environment of demand-driven production and processes.

Demand-Driven Manufacturing: Upending the Traditional Paradigms

Throughout the industry, the traditional manufacturing paradigms are being turned on their head as customers demand more for less. Customers demand higher levels of innovation, shorter product lifecycles, and greater degrees of customization. Even though manufacturers continually improve production and efficiency, with every degree of improvement, expectations rise, too.

It’s time to consider the entire manufacturing process, from start to finish, and whether traditional paradigms can withstand the onslaught of change. No longer a process-driven industry, manufacturing has become a demand-driven industry with customers driving changes and innovation. It’s a revolutionary change for an industry in which companies must adapt quickly or succumb to competition.

Lean Manufacturing Principles Now Apply Throughout the Supply Chain

Manufacturers must be willing to increase inventory at a moment’s notice from customers without incurring additional costs from producing and storing excess inventory. Such prompt action, driven by customer demand, requires flawless communication, not just within your plant, but throughout the entire supply chain.

The missing, critical component to many companies is this element of communications that permeates the entire company. Many manufacturers have made great improvements to their internal communications but still have gaps in the system. Sales, marketing, accounting, and finance may be connected with shared data and information but what about operations and inventory control?

Making sure that all parts of your company have shared, consistent, real-time data is what enhances a demand-driven company’s ability to turn on a dime and produce just what customers want and need. Instead of tackling fulfillment at a functional level, it becomes a seamless part of the supply chain rather than an independent function.

Software for a Demand-Driven Environment

SYSPRO software provides a solid foundation for a demand-driven manufacturing environment. The ease with which SYSPRO helps every area of your company communicate immediately boosts its ability to collaborate and problem solve. Data provided through business reports from SYSPRO enable you to immediately spot potential problems and form an active approach to solving them.

Lean manufacturing principles require companies to do more with less as they streamline their operations. With SYSPRO, you can select customers and products based on profitability, cost, sales opportunity, market share, economies of scale, and more. Information collected and disseminated from your SYSPRO system enables you to make better decisions throughout your company to control costs and improve supply chain responsiveness.

Developing a winning strategy is easier when you can use data to identify the winners. Whether it is winning products or best customers, software such as SYSPRO provides the facts from which you can derive business insights and strategies for improvement.

It’s not easy creating a demand-driven manufacturing company along the lines of lean manufacturing principles. With the right software, however, the task becomes clearer and simpler. SYSPRO offers unparalleled excellence, accuracy, and insights for your manufacturing company.

PositiveVision Offers Expert Advice for Manufacturers

For more information on SYSPRO ERP, visit PositiveVision. PositiveVision provides consulting and services to manufacturing, warehousing, and distribution companies. SYSPRO automates many businesses processes and can help you improve communications with customers, among other benefits. With the right data, you can better manage your business. Learn more on our website or contact us today.


Topics: lean manufacturing, SYSPRO