Expense Reduction Manufacturing Solutions

Manufacturing Solutions delivering Indirect, Procurement & Supplier Cost Optimisation

Overview

The COVID-19 pandemic hit manufacturers in an unexpected and unprecedented way. For the first time in modern manufacturing history, demand, supply and workforce availability are affected globally at the same time.

Companies are experiencing dramatic drops in demand and extreme pressure to cut operational costs. Every major manufacturer is now experiencing disruptions across their supply chains of parts and raw materials, driven by what may now become recurring volatility of supply from South Asia.

Social distancing and employee safety measures put an additional level of pressure on manufacturers, as 40%-50% of their workforce will be unavailable to perform their functions on-site. While office employees and knowledge workers are able to shift to remote work as the default operating mode, most factories are simply not designed to be managed remotely and lack the digital tools and infrastructure needed to support such activities.

We hope the insights we can deliver here will get you thinking about strategy, and how adding expertise can bring resilience in a challenging industry.

Learn more about our Manufacturing Solutions

Insights
Case Studies

Download our Manufacturing Solutions White Paper

The sad truth is that the misconceptions and barriers within the sector stop companies from being able to accomplish the tangible improvements they could easily attain. With our help, you can overcome such hurdles to achieve a truly sustainable supply chain that benefits you in the long-term. Download our Manufacturing Solutions white paper which provides you with valuable insights and actions you can deliver into your own business.

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An Introduction to Expense Reduction Manufacturing Solutions

Our leading team of manufacturing industry experts have already helped many of our clients gain a competitive advantage and achieve additional financial flexibility, supporting their long term goals. Expense Reduction Manufacturing solutions can help your organisation, so to find out exactly how simply download the full Manufacturing Industry Solutions white paper.

"Global manufacturing is undergoing a significant shift. It’s more important than ever to understand the value of the possibilities available."

Manufacturing Industry Insights

Technological Disruptions

It’s no coincidence we are starting with technological disruptions when we investigate the challenges faced by the manufacturing sector. Technology has noticeably advanced over the last couple of years, creating ripples in many industries alongside manufacturing. Technology is facilitating innovations within industry practices, better organisational structure and more strategic decision-making through realtime data collection. But many reviews indicate the sector, more than any other, is not ready to adopt technological innovations or prepared for their risks.

Demand Levels

Demand levels will always vary due to influences from external pressures, such as the impacts of geopolitical issues on businesses and consumers. It, therefore, makes it particularly challenging for manufacturing firms to predict the right supply capacity to meet both the current demand levels and corporate goals, even with the assistance of predictive analytics. Standing in the marketplace can be heavily influenced by a manufacturers ability to respond to the shifting demand levels.

Evolving Models & Supply Chains

The viewpoint that manufacturing and services are separate and contrasting entities is now becoming an out-dated idea; “manufacturing-as-a-service” is now changing the face of the value chain and indicating a significant evolutionary step in the manufacturing game. For example, in the United States, half of the staff within manufacturing firms are employed in service job roles only.

Geopolitical & Regulatory Changes

Over the last couple of years, the world has moved into an unnerving state, with friction in international relations. Geopolitical issues are rising in several parts of the world, with debates regarding trading agreement conditions (particularly free-trade ones).

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Explore some of the most common cost areas within Manufacturing

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"The quicker businesses adopt technology and the opportunities it presents, the better placed they will be for the future."

ABB Case Study

"The key to success resides in the professionalism of Expense Reduction Analysts. They are experts, people who know well each of the materials that we have set to work. Therefore it was, actually quite simple. When you rely on an expert for each account, it is fairly easy to reach to objectives that you have set." Rafael Suñé, CPO, ABB Spain ABB products, a global leader in electrical engineering and industrial automation, can be found from stations orbiting in space to generating energy from the bottom of the seas. They are also present in agriculture, irrigation systems for crops, then later in bottling plants or packaging. The brand is famous for its robots, with all applications possible for industry but also for homes, where they offer from the most futuristic home automation solutions to a simple switch. This Swiss-Swedish company, based in Zurich, with 36 billion euros turn-over and over 135,000 direct employees, is present in over 100 countries.

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Automated Packaging Systems (Autobag) Case Study

“Thanks to their holistic approach and the strength of ERA’s procurement experience, they were able to leverage savings where we couldn’t. When you think you’re doing a good job of something, you don’t scrutinise it – now we know different!" Peter Wylie, Managing Director, Automated Packaging Systems. When responsibility for purchasing is split over multiple sites, it can be easy for communication to become disjointed and efficiencies to slide. When autonomous sites are located in different parts of the world, the problem is compounded and business owners often don’t even realise it’s happening. That was exactly the case for Automated Packaging Systems (Autobag) with their multinational, multi-lingual operations and logistics. Thanks to Expense Reduction Analysts (ERA), a full review of packaging and logistics led to substantial savings, increased efficiencies across the globe and a more robust supply chain.

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"Manufacturers must stay informed of the emerging markets and latest trends to ensure they can meet the needs of existing and potential customers."

Our process is simple. Our sector specialists, all with extensive knowledge of their expert areas, use the skills acquired over impressive professional lifetimes to help you negotiate a better deal in overhead spend. Find out more about who we are and how we work to discover the value we can provide for your business.

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