OEMs and suppliers both bring experience, expertise and specialized knowledge to the table during the manufacturing process. Suppliers often don’t enter the picture until a design is created, and sometimes not until prototypes have been manufactured. However, there’s an argument to be made that a partnership between an OEM and a trusted supplier should be formed during the design phase. Collaborative design can benefit both OEMs and suppliers for a number of reasons.
Although the aerospace industry is leading the effort to combat counterfeiting through methods like serialization tracing and supply chain control, the use and sale of counterfeit parts is still an issue in manufacturing. Counterfeiters are changing with the times too, applying more sophisticated approaches and techniques to skirt testing, laws, and standards. Blanks, clones, and undisclosed remanufacturing are just some of the growing trends infiltrating the world of counterfeit.
Investing in the right prevention procedures, purchasing processes, and product quality controls might seem daunting, but the value of the price of protection far outweighs the cost you might pay for buying, selling, or using counterfeit parts. Here are some steps you can take to mitigate the risk of falling victim to counterfeit.
The Bill of Material is a critical component of the planning process in manufacturing for any industry. This comprehensive list of components and equipment required to manufacture a product can fluctuate depending on cost, availability, and capacity. For original equipment manufacturers (OEMs), outsourcing a level up the Bill of Materials might prove to be beneficial.
Industry predictions indicate that manufacturing will grow faster than the general economy*. Growth in areas such as global aircraft manufacturing is projected to spike from the less than 4% rise seen from 2013-2017 to nearly 9.5% from 2017 until 2021. These high manufacturing expectations are bound to cause an increase in production needs for OEMs. But how do you best scale up production without falling victim to overspending on inventory or finding yourself unable to fill orders due to long lead-times and or lack of capacity?
With the news of backlogs at record highs this year, industry OEMs and suppliers are looking for ways to ramp up production to meet demand. Meeting these needs can become challenging when fulfillment issues arise. According to forecast experts like Deloitte, manufacturers in 2019 should be focused on strengthening their supply chains, more effectively managing projects, and leveraging advanced technology to increase efficiency. As OEMs and suppliers both contemplate ways to meet demand, here are a few things all procurement professionals should look for in suppliers to prevent fulfillment pitfalls.
One way a company can support its community is by offering educational and employment opportunities to the members of the community, especially students. This is particularly true for companies, like Liberty Electronics, in the STEM field. By engaging with the community, the company can educate students about the field and equip them with opportunities for the future. Larger companies, such as Lockheed Martin, do this regularly. Liberty, though located in a smaller community, still offers valuable resources to the area through career, STEM, and mentorship programs to reach students and potential employees.
The global light rail industry is forecasted to reach $4.97 billion by 2026, growing at an annual rate of 9.8%. While Europe continues to maintain the highest market growth, the recent rise in light rail passengers across major U.S. cities has led to approvals for light rail extension projects throughout the country — expecting to drive market growth even further. Light rail vehicles produced by companies like Bombardier, Siemens, Kawasaki, Hitachi, Alstom, Ansaldo, and others are expanding across the nation due to advancements in areas like noise reduction, comfort and safety.
Imagine notifying your two largest customers that their lines will be down because you won’t be able to deliver their products for 16 weeks. Imagine the daily conference calls, site visits, audits, and over-time costs while your organization is turned upside down trying to deliver product, all for one simple reason: a key part of the process was never formally documented on an assembly that is newly outsourced, or outsourced from a new supplier.
In developing standardized procurement processes, operations and purchasing decision-makers should consider strategic sourcing as a part of their procurement best practices. However, they should keep in mind that strategic sourcing is not a single project but rather a key continuous process.
For those companies sincere about establishing control over their supply chains, incorporating strategic sourcing principles should be evaluated. Decision makers must ask: Do we control our supply chain, or does our supply chain control us?
Understanding Turnkey Manufacturing
Turnkey manufacturing solutions are a common outsourcing practice. The term refers to outsourcing production to a single manufacturing partner who controls the process from beginning to end. Companies choose this model because it eliminates the hassle of managing relationships with multiple vendors, making it is as simple as “turning a key” to complete a project.