Advanced Analytics

Supply Chain Shortages and What Businesses Must Do

The already dire state of the global supply chain has been made worse by global conflicts, geopolitical ramifications, and COVID-induced consequences. A growing number of risk variables, for instance, consumer demand, labor constraints, rising materials costs, and geopolitical conflicts, are challenges for supply chain logistics. Therefore, global manufacturers will face more political and competitive pressures. World and business leaders need to rethink ways to boost domestic production, expand employment at home, and reduce their dependencies. Global supply chain shortages are discussed in this article by Reed Dailey and Jim Maurer at Plastics Machinery & Manufacturing.

Coping With Supply Chain Shortages

Manufacturers must work towards lean manufacturing strategies that involve lowering the amount of inventory held in their global supply chains. Additionally, using the predictive analytics method that uses statistical modeling to predict outcomes and performance is highly beneficial to be future-ready.

Manual processing techniques take a long time, are prone to mistakes, and are challenging to spot patterns. Even worse, a lot of manufacturers do not have backup suppliers for a significant portion of their primary requirements. This puts businesses in a reactive position, raises the chance of failure, and prevents ongoing development at a time when plastic manufacturers are facing commercial difficulties.

Five Steps to Overcome Supply Chain Shortages

Predictive analytics can help firms in the plastic sector operate more strategically. The technology assists businesses in streamlining their operations, enhancing real-time decision-making, managing capacity issues, and accomplishing more with less.

Adopting predictive analytics might be challenging for manufacturers that are still using legacy systems. Most of these older systems are not compatible with new hardware and software.

The following are five strategies that every company can use to begin implementing predictive analytics and improve shop floor performance:

  • Evaluate your present situation.
  • Upgrade to advanced equipment.
  • Develop your own reporting and analytics tools.
  • Make decisions based on analytics
  • Determine to improve continuously.

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