Overview of the Manufacturing Industry
Amid a severe recession, the manufacturing sector is making outsized contributions to research and development to improve process innovation and mitigate risks in the supply chain process. Leading players in the manufacturing sector are focusing on realigning their business models to go on par with the fluctuating market dynamics and meet top-line growth objectives. The continuing shift toward increasing customer and supplier collaboration is compelling manufacturers to understand the needs of their end-users, strengthen customer relationships, and add value to their products. Since the demand for manufacturing products is growing at a slow pace; renowned industrial equipment suppliers are increasing their focus on developing advanced manufacturing capabilities to sustain their competitive position in the market.
Although the industrial equipment supplier space is witnessing a promising growth with the adoption of digital capabilities, several factors may influence the growth of the market.
- The presence of new digital technologies: Today, innovations and product development is moving at a lightning pace and organizations need to keep up with the technological advances to stay relevant in the industrial equipment space. As consumers are focusing on gaining adequate product quality, leading businesses need to be more structured in managing innovations while maintaining consistency in their product offerings.
- Rising competition: The industrial equipment space is sophisticated with the presence of numerous competitors offering a wide array of product offerings. The threat of new entrants is forcing businesses to stay abreast of the competition by emphasizing on their production capabilities.
Apart from these conventional factors, stringent government regulations and compliance issues may influence the growth of the industrial equipment space. To counter these challenges in an efficient manner and streamline their product offerings, organizations are leveraging the need for a supplier risk analysis solution.
The Business Challenge and Our Journey
The client, a prominent industrial equipment supplier wanted to identify, assess, and mitigate supplier-related risks to reduce vulnerability and ensure continuity in the supply chain process. With the help of a supplier risk analysis solution, the client wanted to understand the potential risks related to supplier bankruptcies, capacity shortage, and supply of low-quality products. The industrial equipment supplier also wanted to assess the customer satisfaction levels to reduce the production delays and improve the corporate goodwill. The primary objective of the client was to take effective measures to prevent supply chain disruptions and make more timely and accurate business decisions.
To proactively predict the risks and develop robust mitigation strategies, the procurement experts at SpendEdge carried out extensive research methodology. The research methodology comprised of interviews and discussions with the prominent industry leaders in the industrial equipment space. Furthermore, the experts also compiled information across a wide array of reliable sources such as trade shows, paid industry databases, and company presentations to ensure the continuity in the supply chain process in the industrial equipment space.
The supplier risk analysis solution offered by SpendEdge assisted the client to bid for the most lucrative suppliers and gain relevant insights into the cost-effective solution for risk analysis. The solution also assisted the client in developing awareness of the inherent risks and prioritizing risk considerations over time. The supplier risk analysis solution also sought ways for the industrial equipment supplier to categorize the risks based on their severity and develop a robust mitigation plan to successfully deliver the products to the customers.
Fundamental questions answered in this supplier risk analysis include:
During the course of the supplier risk analysis engagement, the industrial equipment supplier was able to streamline their supply chain process right from the manufacturing point to the delivery of products. The solution also offered a financial restructuring of the overall supply chain to adequately allocate resources to meet the business requirements.