According to a recent National Association of Manufacturers (NAM) survey, the vast majority (88%) expect sales, production and prices to increase next year despite the supply challenges. In working with clients across multiple industries such as biotech, building and construction products, and food and beverage, there is no doubt that sales continue to rise (with a few fits and starts due to the extended supply chain disruption) and the focus and concern is on how to expand capacity and scale up successfully to serve customers while not losing control of EBITDA performance.
In addition, there is VAST concern about the risks exposed during the pandemic. This has been further heightened with the changing political landscape. There will be a rush to reshore, nearshore and reconfigure the end-to-end supply chain. Additionally, I expect there to be a transformation with the strongest thriving and growing and the weakest transitioning out. Are you ready for a resurgence?
What Should We Consider and/or What Impacts Could Arise?
- Think 3 steps ahead: How are you positioned to take advantage of this opportunity? Start thinking as if you were playing chess and think 3 steps ahead.
- Reconfigure your supply chain: Plan for what you need to leverage the opportunities successfully.
- Shore up your down-the-line weaknesses: As this transformation takes place, where will your weaknesses show up? Start overcoming them immediately and ignore what won’t become a bottleneck.
- Implement SIOP (Sales, Inventory, & Operations Planning): You must have a process in place to improve the predictability of your revenue plan and integrate the core processes within your business to scale and achieve financial results. See a client video on the impact of SIOP.
- Hoard talent: The most successful clients are hoarding talent. There is a severe shortage of talent. People have choices. Is your company compelling people to work for you?
- Digitize the supply chain: To thrive in the new world with the resurgence of manufacturing, you must digitize your supply chain. Start immediately. Ramp up even faster. Yet maintain a common sense view.
Please keep us in the loop of your situation and how we can help your organization successfully navigate the current volatility and emerge above and beyond. Several of these types of topics are included in our new eBook Emerging Above and Beyond: 21 Insights for 2021 from Manufacturing, Supply Chain & Technology Executives. Download your complimentary copy.