Jarn Gill, head of corporate sales at RS Components weighs in on the challenges manufacturers face as they strive to safeguard continuous improvement efforts throughout their businesses.
Managing the company’s cost base effectively, while investing in the business to ensure continuous improvement will remain one of the biggest challenges facing manufacturing in the year ahead, and getting the balance right will be essential to success in the competitive landscape.
UK manufacturing has a strong part to play in the global economy. Companies need to be aware of constantly changing demands and adapt accordingly.
A flexible approach will determine how well you are able to manage your cost base and therefore how successful you will be.
MRO procurement is complex and departments working together will fuel progress. Those organisations that align their operations, finance and procurement functions will benefit with improved efficiency and savings.
This means streamlining processes; and choosing fewer, better quality or energy-saving products to minimise maintenance, reduce energy costs and frequency of replacement.
Also, dealing with multiple suppliers to save on product costs is counterproductive, as the downtime in dealing with the varying processes of these suppliers when it comes to ordering and invoicing negates any saving that can be made on product.
The manufacturing sector is big. Businesses need to network and connect with suppliers, to share and learn best practice by engaging with different companies, especially around the procurement process to help improve their own business.