Category: Manufacturing Best Practices

How Supply Chain Management (SCM) Been Impacted by the Shortage Economy

There has been no escaping supply chain disruptions. Manufacturers across the globe experienced a new set of challenges due labor and supply shortages.

Andrew Shoppa, a supply chain management expert, stated–that before the COVID pandemic, HNI Corporation was consistently operating around a 99% complete on-time rate for shipments from suppliers. During the organization’s lowest point in the shortage economy, they were operating at a rate of 78%, which greatly affected their ability to perform for their customers. 

However, HNI was not alone, other manufacturing leaders have experienced supply chain delays which have negatively impacted their on-time customer deliveries.

Gordon Van Champ, a seasoned supply chain leader from Chamberlain Group, found that many of their sourcing issues could be traced back to overwhelmed ports. Chamberlain had not diversified their sourcing, which put additional pressure on individual suppliers who were already overflowing with orders.

The Shortage Economy Impacts

Dealing with employment and resource shortages presents several challenges. With the current market dynamics, manufacturers have been forced to adopt processes that deal with the symptoms of shortages instead of addressing the root problem.

While there are approaches manufacturers can take to be adaptable in the face of whatever supply chain challenges will come, the reality is that many of the easy, instinctive solutions are short-sighted stop gaps. Here are a few ways manufacturers are dealing with shortage disruptions today and how they are creating sustainable strategies to build supply chain resilience.

Manufacturing Supply Chain Workforce Challenges

Deloitte and the Manufacturing Institute (MI) reported that the U.S. manufacturing industry was looking to fill half a million job openings in 2021, with expectations for that number to continue to increase. It is estimated that over 2 million of those jobs are likely to remain unfilled until at least 2030 which the study warns could damage the U.S economy by up to $1 trillion.

One top of that, LinkedIn reported a 28% turnover rate increase for manufacturing supply chain positions. With open positions that are hard to fill and existing staff feeling the burden of cognitive overload, managers are struggling to meet their goals with their existing workforce.

The global competition for supply chain talent rages on for both hourly and salaried roles alongside a once-in-a-lifetime shift in where, when, how, and why supply chain professionals work. Manufacturing companies will have to work harder to make jobs more exciting and rewarding for their employees, and to do even more to generate enthusiasm around their company’s vision and future to compete with the war on talent.  

Supply chain leaders must inspire a unique mix of frontline, hybrid, and remote workers. Discover how streaming the data manufacturing process using a human-centric work design can influence employment value propositions that retain and engage current employees, and attract and retain new ones.

Webinar Recap 

Recently, LeanDNA had the opportunity to host a discussion involving experienced manufacturing leaders from Chamberlain Group, HNI Corporation, and PSG Dover. 

The three main learning objectives covered in the Building Supply Chain Resilience Webinar included: 

1. Shortages and issues discrete manufacturers face
2. The role technology plays in addressing these challenges
3. How to utilize modernized planning and optimization tools for actionable insights

This blog serves as a resource to summarize the key takeaways from the conversation, you can also download the full webinar video for additional details on the topics discussed. 

According to the recent State of Supply Chain 2022 report, nearly 75% of manufacturers feel pressured to digitally transform their supply chain operations. But why are there so many internal roadblocks to adopting new technologies, work processes, and business solutions?

In our latest State of Supply Chain 2022 webinar, hosted in tandem with The Association for Manufacturing Excellence (AME), industry leaders from LeanDNA, AME, and Deloitte participated in a roundtable discussion to answer this question and more. Below we’ll address different perspectives on why the implementation of new tech and new ideas, which manufacturers need to stay successful in today’s market, is easier said than done. 

According to the recent State of Supply Chain 2022 report, nearly 75% of manufacturers feel pressured to digitally transform their supply chain operations. But why are there so many internal roadblocks to adopting new technologies, work processes, and business solutions?

In our latest State of Supply Chain 2022 webinar, hosted in tandem with The Association for Manufacturing Excellence (AME), industry leaders from LeanDNA, AME, and Deloitte participated in a roundtable discussion to answer this question and more. Below we’ll address different perspectives on why the implementation of new tech and new ideas, which manufacturers need to stay successful in today’s market, is easier said than done. 

This week LeanDNA and The Association for Manufacturing Excellence (AME) hosted a webinar on the current state of the supply chain and the New Shortage Economy. Our very own Richard Lebovitz and Kamalina Srikant joined AME’s Robert Martichenko and Deloitte Consulting’s Louis Librandi to expand upon results from the recently published “State of Supply Chain in the New Shortage Economy” report and discuss the current pain points, opportunities, and approaches in manufacturing and supply chain. 

COVID-19 has had a lasting impact on virtually every industry, and manufacturing is no exception. The pandemic has amplified supply chain challenges that are increasingly complex, from highly customized orders, intricate sub-assemblies and parts sourced from more global suppliers, and overburdened planning and procurement teams.

In this “new shortage economy,” it’s increasingly evident that manufacturing’s existing processes are in need of an upgrade. Additional insight and visibility into the supply chain is necessary for manufacturers to avoid shortages, optimize inventory, and save money.