The Role of Manufacturing in the Business Supply Chain?

The role of manufacturing in today’s business supply chain provides essential products and services to an ever-increasing marketplace.  

This blog will discuss the effects of the supply chain on businesses reliant upon manufacturing options, what their challenges are, and where the manufacturing supply chain is moving forward.

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What Is Manufacturing?

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Manufacturing is a standardized process where companies transform raw materials into finished, market-ready products and services, manufacturing them using a variety of tools and technology. 

After their manufacture, the products are then sold to wholesalers, distributors, retailers, and the consumer, making them an essential cog in the business supply chain. 

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The Role of Manufacturers in the Business Supply Chain

Manufacturers create products or services required by the wholesaler, distributor, retailer, and consumer. 

The following are some examples of the roles that manufacturers play in the business supply chain:

1. Raw Material Sourcing‍

Manufacturers are responsible for the management and sourcing of the raw materials needed for manufacturing (production) materials sourcing and managing - a process involving price negotiation, quality control, and supplier selection.  

2. Production Process‍

After acquiring raw materials, manufacturers proceed with the production process,  employing advanced technology that increases productivity, maintains quality control, and converts raw materials into finished products.  ‍

3. Product Distribution‍

The distribution of the finished product to the POS is paramount.   ‍

4. Inventory Management‍

Inventory management monitors stock levels, overseeing any risks related to over or under-production.

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What Are the Main Challenges Manufacturers Face?

In addition to their operational responsibilities, manufacturers face several challenges, such as :

1. Increasing Global Competition‍

Increased globalization has seen manufacturers face increased competition, forcing manufacturers to be innovative, improve efficiency, and enhance quality control to remain competitive domestically and globally. 

2. Fluctuating Raw Material Prices‍

The availability of raw materials is critical for the manufacturing process, however, market volatility affects cost stability, which can snowball to increased production costs and bottom-line profitability. 

3. Technological Advancements‍

Manufacturers must keep abreast of all technological developments to remain competitive and relevant in a fast-changing environment.

4. Regulatory Changes‍

Business and industry regulations significantly affect manufacturing operations.

Compliance with all governmental policies related to environmental protection, labor laws, and taxes is integral to survival, with vigilance needed to be aware of any sudden changes.

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How to Overcome Manufacturing Challenges

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If you're facing these challenges, here are a few solutions to consider:

1. Focus on Product Innovation‍

Focus on product innovation to stay competitive. Invest in Research and Development (R&D), and be flexible to the changing consumer demands and needs.

2. Diversify Raw Material Sources‍

Diversify your raw material supply chains to stabilize your production process to reduce material dependency and price gouging.

3. Based Systems‍

To maintain competition, operational efficiency, and productivity, adopt advanced technology and adapt smart technology into your production process to maximize output and productivity.

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In conclusion, manufacturers are critical to the production process of meeting consumer demand, with technological developments being one of the biggest challenges facing them.  

Now is the time to implement Youtap’s POS Digital Solutions, designed to streamline your business operations by making them more efficient, faster, practical, and user-friendly. 

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