August 2023 Volume 5

OPERATIONS & MANAGEMENT

lean journey and manufacturing agility within your proverbial four walls? That program must extend to the external supply chain – and leaders in this practice are taking the Toyota supplier development principles on the road to benefit their company’s extended supply chain. Manufacturing Technology Additive Manufacturing and AI-Enabled Rapid Supply: Additive manufacturing disrupts traditional manufacturing and supply chain models. It enables on-demand production, customization, reduced lead times, and decentralized manufacturing, leading to significant cost and inventory reductions. Maybe it isn’t apparent in your company’s medium to long-term goals, but staying abreast of the trend and constantly thinking about Additive and AI-Enabled Rapid Supply can ensure you do not get left behind. Oh, what is AI-Enabled Rapid Supply? Imagine a company that uses AI to read CAD files and models, then electronically talk to a multi-axis milling machine. Next, the machining program is inducted into a parametric model that produces a price for the part. Using a catalog of on-site metals, the supplier offers the part in hours or days versus weeks or months – whatever you are willing to pay for. Sound far out? It isn’t - these companies are in business today. Sustainability Circular Economy and Reverse Logistics: The circular economy concept is gaining traction, with manufacturers focusing on product life extension, recycling, remanufacturing, and efficient reverse logistics processes. This approach minimizes waste and maximizes resource utilization throughout the product lifecycle. Time to read up – you don’t want to be surprised. And you may need a logistics partner to create the right strategy for your supply chain. It’s a rapidly evolving side of supply chain management that hasn’t fully jelled, but you cannot wait to think about this aspect of your company’s supply chain design. Sustainable and Responsible Practices: Environmental sustainability and social responsibility have become significant considerations in supply chain management. Manufacturers are adopting sustainable practices, such as eco-friendly packaging, energy-efficient transportation, waste reduction, and responsible sourcing, to meet customer expectations and comply with regulations. Once again, it may not apply to your business, but be aware and work on what does apply today. Playing catch-up in sustainability differs from the position you want for your company, large or small. Be careful not to dismiss these trends due to your company’s comparative size. There may be some skepticism regarding the relevance of emerging trends in supply chain management for your company. However, I would like to suggest the significance of staying informed about emerging trends regardless of a company's size. Even small and medium-sized enterprises operate within a highly competitive landscape in today's business environment. Emerging trends in supply chain management, such as technological

advancements, process optimization, and innovative practices, provide opportunities for all companies, regardless of size, to gain a competitive edge. Staying ahead of the curve can enable you to differentiate yourself from competitors and seize new growth prospects. Size should not be a barrier to adaptability and agility. Smaller companies often have the advantage of being nimbler and more flexible in implementing changes. If what may appear to be radical change is not regularly dismissed. We can proactively adapt our supply chain strategies by embracing emerging trends to meet evolving customer demands, market dynamics, and industry requirements. This adaptability positions us to respond swiftly to market disruptions and capitalize on emerging opportunities. No, not day one, but read over the paragraphs above once more, and think about weathering another pandemic. Would these concepts help? Supply chain management trends often focus on cost optimization, efficiency gains, and process improvements. Regardless of company size, these trends directly impact our bottom line. Implementing innovative practices can lead to cost savings, streamlined operations, and enhanced resource utilization. By harnessing these emerging trends, we can improve our supply chain efficiency, reduce waste, and achieve cost savings that positively impact our financial performance. Emerging trends often highlight the importance of collaboration and partnerships within the supply chain ecosystem. Leveraging strategic collaborations, even as a smaller company, allows us to tap into the expertise, resources, and networks of larger organizations or complementary industry players. By actively participating in collaborative initiatives driven by these emerging trends, we can gain access to new markets, expand our capabilities, and unlock mutually beneficial opportunities. Creative solutions when a commodity exists in the Strategic Quadrant are game-changing events for any company, any size! It is essential for your company, for the forging industry, regardless of company size, to actively engage with emerging trends in supply chain management. Doing so enables our industry to stay competitive, enhance adaptability, optimize costs, foster collaboration, and nurture an innovation-driven culture. And to compete globally. I have been in the sourcing and procurement, and supply chain management game for longer than I will admit, but the speed of professional evolution is at a fever pitch. What may have been a docile, work-a-day profession in the 1980s is likely one of, if not the most dynamic profession in American industry today. Vic Venettozzi Vice President & General Manager Consolidated Industries, Inc. Email: Vvenettozzi@consolindustries.com Phone: 203-272-5371 x 273

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