Manufacturing - Streamling production (Review Report)

Table of Contents

• DATAMONITOR VIEW
  • CATALYST
  • SUMMARY
  • METHODOLOGY
• EXECUTIVE SUMMARY
  • Introduction
  • Manufacturing production pressures (Market Focus)
  • Strategies to target manufacturing pain points (Strategy Focus)
  • Supply chain technology for manufacturers (Technology Focus)
  • Manufacturing SCM trends in Germany, the UK, the US, France and Benelux (Databook)
• MANUFACTURING PRODUCTION PRESSURES (MARKET FOCUS)
  • Summary
  • Shortening customer demand cycles within the manufacturing industry
    • Different demand cycles are evident in various industries
    • Consumers are not always the direct customer, but are having a greater influence on them than ever before
  • An increase in foreign competition threatens established manufacturers
    • Barriers to entry may lessen the negative effects of competition
  • Falling profit margins are driving manufacturers into the red
    • An increasing cost of materials is putting pressure on margins
    • Competitive pressure on prices is also leading to lower margins
  • Supply chains and products are becoming more complex
• STRATEGIES TO TARGET MANUFACTURING PAIN POINTS (STRATEGY FOCUS)
  • Summary
  • Lean initatives help manufacturers trim waste from their processes
    • Total productive maintenance aims to minimize production line down time
    • Six Sigma focuses on production quality
    • Just in time manufacturing 'pulls' production processes
    • Kaizen (continuous improvement) ensures manufacturers continue to experience strategy driven benefits
    • 5S streamlines cleanup processes
    • Quick change over (SMED) ensures that reconfiguration of production lines flows smoothly and quickly
    • Adoption of lean strategies will vary by region, industry and individual company
  • Demand driven manufacturing seeks to lower costs while improving customer satisfaction
    • Demand driven manufacturing removes the need for traditional forecasting
    • Employing demand driven manufacturing reduces the cost of holding inventory
    • Demand driven manufacturing can be challenging to implement
      • Production must be flexible enough to deal with changing demand cycles
      • Visibility into the supply chain is required for demand driven manufacturing
      • Real time operation leads to the most significant benefits from demand driven manufacturing
      • Managing information pertaining to demand driven manufacturing is critical
    • Demand driven manufacturing will grow in popularity, but manufacturers will need help
  • Increasing supply chain visibility allows optimization of core and peripheral processes
    • Production visibility allows manufacturers to hone their core competency
      • Supplier interaction is an important element of a manufacturer's business
      • Customer interaction directly affects revenue, and costs
• SUPPLY CHAIN TECHNOLOGY FOR MANUFACTURERS (TECHNOLOGY FOCUS)
  • Summary
  • SCM helps manufacturers to refine their processes in a variety of different operational areas
    • SCM solutions provide visibility into key processes and assist with optimization
    • Multiple manufacturing processes are supported and enhanced by modern SCM solutions
      • Demand driven manufacturing is assisted by SCM in the areas of planning and scheduling
      • Supplier relationship management is boosted by the addition of a SCM solution
      • SCM helps procurement and strategic sourcing through automation
      • SCM helps manufacturers avoid unnecessary logistics costs
      • Warehouse management helps optimize space on the actual plant floor
      • Maintenance management ensures that assets achieve maximum uptime and life
    • The overall impact of SCM is to optimize various processes within manufacturing companies
  • The global market for SCM is growing at a steady rate
    • The US spends the most on SCM software in the manufacturing industry
    • The automotive industry will lead the UK's spending on SCM software
    • Germany's strength in manufacturing makes it a strong adopter of SCM technology
    • Manufacturers have SAP at the front of their minds with respect to future SCM investment
• MANUFACTURING SCM TRENDS IN GERMANY ,THE UK, THE US, FRANCE AND BENELUX (DATABOOK)
  • Introduction
• GERMANY SCM EXPENDITURE
  • Total German SCM application spend
  • Total German SCM spend by manufacturing type
  • Total German SCM spend by manufacturing industry
• UK SCM EXPENDITURE
  • Total UK SCM application spend
  • Total UK SCM spend by manufacturing type
  • Total UK SCM spend by manufacturing industry
• US SCM EXPENDITURE
  • Total US SCM application spend
  • Total US SCM spend by manufacturing type
  • Total US SCM spend by manufacturing industry
• FRANCE SCM EXPENDITURE
  • Total France SCM application spend
  • Total France SCM spend by manufacturing type
  • Total France SCM spend by manufacturing industry
• BENELUX SCM EXPENDITURE
  • Total Benelux SCM application spend
  • Total Benelux SCM spend by manufacturing type
  • Total Benelux SCM spend by manufacturing industry
• APPENDIX
  • Definitions
  • Extended methodology
  • Further reading
  • Ask the analyst
  • List of Tables
    • Table 1: Supply chain management definitions
    • Table 2: Germany total SCM spend, 2003-2010 ($m)
    • Table 3: German SCM spend by manufacturing type, 2003-2010 ($m)
    • Table 4: German SCM spend by manufacturing industry, 2003-2010 ($m)
    • Table 5: UK total SCM spend, 2003-2010 ($m)
    • Table 6: UK SCM spend by manufacturing type, 2003-2010 ($m)
    • Table 7: UK SCM spend by manufacturing industry, 2003-2010 ($m)
    • Table 8: US total SCM spend, 2003-2010 ($m)
    • Table 9: US SCM spend by manufacturing type, 2003-2010 ($m)
    • Table 10: US SCM spend by manufacturing industry, 2003-2010 ($m)
    • Table 11: France total SCM spend, 2003-2010 ($m)
    • Table 12: France SCM spend by manufacturing type, 2003-2010 ($m)
    • Table 13: France SCM spend by manufacturing industry, 2003,2010 ($m)
    • Table 14: Benelux total SCM spend, 2003-2010 ($m)
    • Table 15: Benelux SCM spend by manufacturing type, 2003-2010 ($m)
    • Table 16: Benelux SCM spend by manufacturing industry, 2003-2010 ($m)
  • List of Figures
    • Figure 1: Manufacturers believe that becoming more competitive/lowering costs is now becoming a more important issue
    • Figure 2: More manufacturers believe that increasing market share/driving revenues is becoming increasingly important
    • Figure 3: Which of the following strategies are you implementing?
    • Figure 4: Are your manufacturing operations lean or traditional? (1 = traditional, 4 = lean)
    • Figure 5: Global adoption of SCM software is steady but growth will decline after 2008 ($m)
    • Figure 6: Automotive and high-tech are the two largest spenders on SCM software worldwide ($m)
    • Figure 7: The CPG industry will become the biggest spender on SCM software in the US by 2010 ($m)
    • Figure 8: Automotive, CPG and high-tech lead UK SCM spending ($m)
    • Figure 9: Automotive dominates the market for SCM software in Germany ($m)
    • Figure 10: SAP gains the largest mindshare for SCM among manufacturers
    • Figure 11: Germany total SCM spend, 2003-2010 ($m)
    • Figure 12: German SCM spend by manufacturing type, 2003-2010 ($m)
    • Figure 13: German SCM spend by manufacturing industry, 2003,2010 ($m)
    • Figure 14: UK total SCM spend, 2003-2010 ($m)
    • Figure 15: UK SCM spend by manufacturing type, 2003-2010 ($m)
    • Figure 16: UK SCM spend by manufacturing industry, 2003,2010 ($m)
    • Figure 17: US total SCM spend, 2003-2010 ($m)
    • Figure 18: US SCM spend by manufacturing type, 2003-2010 ($m)
    • Figure 19: US SCM spend by manufacturing industry, 2003,2010 ($m)
    • Figure 20: France total SCM spend, 2003-2010 ($m)
    • Figure 21: France SCM spend by manufacturing type, 2003-2010 ($m)
    • Figure 22: France SCM spend by manufacturing industry, 2003,2010 ($m)
    • Figure 23: Benelux total SCM spend, 2003-2010 ($m)
    • Figure 24: Benelux SCM spend by manufacturing type, 2003-2010 ($m)
    • Figure 25: Benelux SCM spend by manufacturing industry, 2003,2010 ($m)