Manufacturing
The term manufacturing is most commonly applied to industrial design in which raw materials travel through a variety of operations and are transformed into finished goods. Such goods may be sold to other manufacturers for the production of other more complex products or distributed via wholesalers or retailers to end users and consumers. Core manufacturing planning activities focus on balancing demand with a range of supply parameters, such as machine capacity, workforce capacity, inventory and material supply, with a focus on customer service and operational costs. Connected Planning is a must for any manufacturer looking to digitize, innovate, and meet changing consumer expectations.
The Manufacturing Industry consists of four core sub-industries – Industrial & Automotive, Tech Hardware, Life Sciences, and Logistics & Transportation – each with their own objectives.
Industrial & Automotive
- Automotive manufacturing encompasses the OEM’s (e.g. Ford) their supplier, suppliers-suppliers and sometimes a fourth level of raw material suppliers.
- Industrial manufacturing is a catch all term for mostly discrete product manufacturers, sometimes process or project manufacturers.
Tech Hardware
- A generally accepted industry view would be composed of raw materials suppliers to manufacturers who supply assemblers producing the finished good
- Finished goods include a wide range of consumer goods, components in consumer and industrial goods
- Discrete manufacturing oriented (phones, computers, chips)
Life Sciences
- Inclusive of Biotechnology and Pharmaceuticals
- Strategic focus on new product development, launch and achieving operational scale
- Heavily regulated, especially in terms of quality control
- Process manufacturing oriented
Logistics & Transportation
- Inclusive of Logistics, Distribution, and Wholesale operations
- Strategic focus on delivery of goods while optimizing costs (labor, fuel, SG&A), changing customer expectations and demand
- Face significant disruption due to global supply chain challenges