Everyone wants to do the best in what they do.
What manufacturer do you need to do to be the best?
We have worked closely with manufacturers over many years and have put together a list of the things we believe the top manufacturing companies share in common.
They serve a purpose
Focus on the processes and best practices
They use an ERP system
They embrace innovation
They manage their supply chain management.
They are focused on continuous improvement
Continue reading to find out if you are ready to take the next step.
1. The most successful manufacturers have a purpose.
A purpose motivates employees and gives the entire company a common goal.
Many millennials want to work in exciting jobs and have a culture that supports a shared mission. Research supports this -- 9 out of 10 employees would be willing to accept lower pay for more meaningful work.
These questions will help you determine if your purpose is to serve a purpose.
Who do we serve?
What can we do to help them?
What are our solutions that improve the lives of customers?
These questions will help you identify your company's purpose.
Next, ensure that you have a strategic plan that is centered around your purpose. This will be communicated regularly by your senior leadership to your staff.
2. The best manufacturers are focused on processes and employ best practices.
Your shop will run smoothly if your processes are well-defined. Good inventory management ensures that you have enough inventory to meet your production needs.
You can also manage complex business operations more effectively and efficiently by implementing best practices. This means that you should choose the right industry standards to suit your shop.
Many custom manufacturers have difficulty managing BOMs (Bills of Material), especially when it comes to complex builds. You can make sure you follow industry best practices for structuring and managing a BOM. This will allow you to ensure you have an efficient format, and that it is always done the same way. This will make it easier to all your departments from production to procurement to accounting to do their jobs.
3. An ERP system is essential for the best manufacturers.
A company that develops ERP systems for manufacturers might find it a bit exaggerated to say that you must have an ERP system.
But we are serious.
An ERP system is a must for all manufacturing companies. ERPs are the best way to increase visibility throughout your company, improve efficiency, streamline business processes and reduce operational costs.
Manufacturers without an ERP system must manage their business using multiple software programs and systems that don't communicate with or interact with one another. This can lead to poor performance and slow down collaboration, which in turn limits productivity. An ERP allows you to run all your departments from one system. This makes your operation more efficient and allows you to complete more jobs on time.
An ERP, or enterprise resource planning, is the best way to integrate people, processes, and technologies within a company. The benefits are virtually endless.
4. Innovation is the hallmark of the best manufacturers
Manufacturing is often viewed as a niche industry that relies on large production facilities in highly industrialized areas. However, recent innovations have made it possible to transform both the industry's look and its definition.
Currently, the manufacturing industry is undergoing rapid innovation known as "Industry 4.0". This transformation will enable production to become more efficient and data-driven.
Companies that embrace technologies such as artificial intelligence can make adjustments on the spot and prioritize efficiency. These technologies are expensive and can require a steep learning curve. However, it is becoming a rapidly growing trend to embrace new technologies as they become the norm.
5. The most successful manufacturers manage their supply chains.
There are many tasks involved in managing a supply chain that ensures on-time delivery and superior results. Companies have in the past outsourced manufacturing to other countries to lower costs. Outsourcing can lead to production delays and production errors due to communication difficulties and differences in time zones.
When working with foreign suppliers, transparency is key. Keep up to date on global events and any other developments that could impact your supply chain.
Canadian-based manufacturing companies have the strong capabilities to make it possible to shift to local production. This could help reduce the road delays and road bumps associated with offshoring. Local manufacturing is now able to handle projects of any size and complexity. This makes it a viable option for companies looking to improve their supply chain management.
6. Continuous improvement is the hallmark of the best manufacturers
No matter how far a manufacturer is from its competitors, current technology and upgrades mean that all companies can collaborate regardless of their location.
It is easier than ever to learn about specialized technologies and how your company can stay competitive in a constantly changing market. There are a lot of manufacturing hubs around the world.
Your company must remain flexible and open to all kinds of changes. The current state of manufacturing offers many opportunities to expand your manufacturing business and make innovative changes, no matter how small.