This is unlikely to change if U.S. manufacturing companies take the right steps in order to maintain their competitiveness.
However, U.S. manufacturing faces significant challenges. Although earnings have improved for many companies over the past few quarters, revenue growth has been slow. It is almost impossible for goods manufacturers to increase prices because of the excess production capacity in many industries.
Due to the high labor costs in America, U.S. manufacturing companies have been able to thrive by being flexible and cost-efficient. While the number of workers in manufacturing has declined over the years, the total output has remained constant with an expanding economy. Manufacturers have been able to boost earnings in a slow economy thanks to cost efficiency and flexibility.
Understanding how manufacturers are able to achieve such efficiencies is key. All business processes depend on technology infrastructure. American manufacturers are better than any other country’s and have used a constantly evolving technology infrastructure to rework their business processes for maximum efficiency.
Executing best practices is key to efficiency. There are many ways to improve efficiency. These include using collaborative applications to see the true demand, improving production agility to reduce lead times and improving product quality by having access to real-time data from the plant floor.
Manufacturers spend between 2 and 5 percent of their annual revenues each year on investments in information technology. It is important to spend this money wisely. The global competitive problem facing American manufacturers will only get worse with China’s entry into the world export market.
Every employee must be a decision-maker in order to achieve efficiency and flexibility. Your technology platform and Jasa import china must be able to meet the demands of real-time information. Delays in communications can lead to high raw material costs and increase purchasing costs by thousands of dollars.
When you consider these issues, you will also realize that Supply Chain Management combines a complete enterprise architecture and integrated, automated business process, then embeds analytical capability into those processes. This puts you and your staff in control and provides you with the means to achieve operational excellence based on best practice and executed in an efficient, flexible environment.