More businesses are switching from single-site manufacturing process to a multi-site one for several reasons. Some do it to expand their manufacturing capacity. Others simply see the cost-benefits of streamlining the manufacturing process across multiple sites.
The move becomes more valuable in today’s growing market. Demand across most industries is on the rise and more businesses are exploring new ways to expand their capacity; multi-site manufacturing is one of the best solutions and the smart tips we are about to discuss in this article make the solution even better.
Manufacture in the cloud
Technology is on your site when it comes to spreading your manufacturing process across multiple sites. A business solution designed to run in the cloud or on a dedicated server can handle all the management tasks of multiple manufacturing facilities. In simple terms, you can now move the management aspect of manufacturing to the cloud.
The solutions are getting better too. They now come with automation features which automatically tracks metrics from on-site sensors and human input. Using data from multiple sites, manufacturing solutions can handle everything from a Just-In-Time supply chain to forecasting production levels using historical data.
At the same time, you also gain a better bird’s-eye view of the processes. With data gathered and analyzed in a centralized way, having multiple manufacturing facilities doesn’t have to mean dealing with complex monitoring and management challenges.
Added flexibility with cost management
Choosing a manufacturing site involves taking several key aspects into consideration. Proximity to suppliers and customers are among those aspects, along with the availability of distribution lines, labor costs, and many others. With a single manufacturing facility, it is not always possible to prioritize all of the key aspects.
That is not the case with multi-site manufacturing. One site can be closer to raw materials while the other is right next to the primary distribution warehouse. These decisions can be followed by a manufacturing workflow that is designed to take advantage of the strategic benefits offered by the different locations.
Larger businesses have used this approach for so long. You only need to look at the manufacturing facilities of big car companies like Toyota and GM to understand how flexible they can be with their cost management.
Lowered entry barrier
Maintaining multiple manufacturing sites can also lead to some long-term benefits. The labor costs in different locations vary, which means labor-intensive lines can be set in areas with affordable labor. Having multiple locations to work with also allows you to get around some common entry barriers such as labor availability and local regulations.
Even more mundane issues such as the availability of space and expansion options can be solved easily with the help of the multi-site approach. The fact that you can acquire more space for your manufacturing lines at great prices in certain locations makes the approach even better.
Despite the many benefits, deciding to go with a multi-site manufacturing process is still a big move to make. You want to be extra certain that you are gaining the most benefits from the decision. With the tips and tricks discussed in this article, getting started with expanding your own manufacturing process will be easy.
