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Auctus Business Consulting

We Mean Growth ®

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

  1. Understand what the client recognizes as “value” and differentiate that into “delivery”;
  2. Align Planning, Manufacturing and Logistics, to improve cross-functional workflow;
  3. Develop the reconfiguration and transformation of the plant or Manufacturing floor to meet small and large batches simultaneously;
  4. Professionalize the Collaborative Project Management in Product/Service Innovation, improving the efficiency and effectiveness of all invested resources; among others…