Durable Goods
In the Durable Goods Sector, we find companies in the area of Chemical, Textile, Construction Materials, Metallurgy, Machinery, Automotive, Furniture, etc.
MARKET
- A few large manufacturers and large fragmentation of assembly plants as well as small workshops that capture smaller orders.
- High price competition, import substitution approach and lack of reliability in small manufacturers quality and service.
- Continuing demand for shorter response times and quality certification at the source.
KEY BUSINESS PROCESSES
- Strategy and Price Management.
- Demand Planning.
- Development, Professionalization and Management of the Sales Channel.
- Synchronizing the Supply Chain and inventory reduction.
- Flexible and low cost manufacturing.
CHALLENGES AND OPPORTUNITIES
- Optimal Cash Flow Management, ensuring that the Procure-to-Pay cycle and Profitability are synchronized with the Business Model.
- Close and fast Consumer/User response, doing Collaborative Demand Planning and fulfilling with more agility the response time required by all Customers.
- Agility and multi-purpose configuration in the production floor, achieving flexibility managing different batch sizes in the fabrication and sales perspective.
- Agility managing the Global Supply Network, seeking more specialization and complementarity among the offered portfolio.
- Collaborative management of Product Innovation Projects, ensuring an effective communication and project management, considering and closely linking, along the development process, the Users, Intermediaries/Brokers, Clients and Suppliers.
RECOMMENDATIONS
- Understand what the client recognizes as “value” and differentiate that into “delivery”;
- Align Planning, Manufacturing and Logistics, to improve cross-functional workflow;
- Develop the reconfiguration and transformation of the plant or Manufacturing floor to meet small and large batches simultaneously;
- Professionalize the Collaborative Project Management in Product/Service Innovation, improving the efficiency and effectiveness of all invested resources; among others…