The Sound of Silence – SupplyPro shares how to avoid manufacturing disruptions

When a production line comes to an abrupt halt, the silence often cries out for disaster. Engine manufacturing is based on efficient operations to keep the manufacturing machine running. Unplanned downtime is costing manufacturers millions of dollars, increasing 59% in the last 24 months. At a major car manufacturer, an interruption in the assembly line costs more than $5,000 per second – a digital counter prominently displays the cost of downtime to the nearest penny at the manufacturing site.

SAN DIEGO, August 29, 2022 /PRNewswire-PRWeb/ — The Sound of Silence

The manufacturing sector has a large footprint in the US economy despite current supply chain issues. When manufacturing stagnates, it drags related industries down. For every dollar of domestic manufacture, another $3.60 economic activity is generated elsewhere in the economy. Manufacturing accounts for 11% of US GDP $2.5 trillion value of products.

When a production line comes to an abrupt halt, the silence often cries out for disaster. Engine manufacturing is based on efficient operations to keep the manufacturing machine running. Unplanned downtime is costing manufacturers millions of dollars, increasing 59% in the last 24 months. At a major car manufacturer, an interruption in the assembly line costs more than $5,000 per second – a digital counter prominently displays the cost of downtime to the nearest penny at the manufacturing site.

The cause of manufacturing disruptions

The most obvious disruptions come from stock-outs. However, an optimized supply chain helps prevent running out of critical direct materials and stock items, but it’s not what typically cripples production unexpectedly. Mission-critical materials are often well managed with high-level resources and advanced systems, but it’s often the indirect materials that go unchecked and the cause of unforeseen disruption.

The saying “it’s the little things that count” has never been truer when it comes to manufacturing disruptions; the maintenance part that is not stocked, the tool that is missing, or the safety item that violates a labor agreement – ​​each of these scenarios, among others, can lead to production stoppage. The impact of not having inventory at hand is dramatic: facilities with manual systems operate with machine utilization rates below 50%, compared to 95% utilization when they implement automated inventory management systems.

In modern manufacturing environments, strategies to minimize downtime caused by machinery focus on prescriptive and predictive maintenance and repair (MRO – maintenance, repair, operations). Even when these strategies are successfully implemented using advanced technologies such as AI, IoT, and sensors, time is wasted locating the tools and procuring the parts needed for each operation. Delays in obtaining tools and parts can often be caused not only by the time required to retrieve them, but also by the technical specifications of what is needed and their availability. A global distributor estimated that in many manufacturing operations, around 20% of an operator’s time is spent looking for tools and… around 15% of jobs are delayed due to missing equipment.

The financial impact of production disruption can be enormous, but it goes beyond direct dollars and cents. When production stops, it delays product delivery and negatively impacts customer relationships. Customer loyalty is a hard-earned asset for every business that quickly disintegrates when product disruptions occur. In the industrial market, when a supplier does not meet its delivery commitment, it can have a domino effect and negatively impact a series of manufacturers. The reality of current supply chain shortages is driving up prices and contributing to rising inflation. Reliable product delivery is an essential part of customer satisfaction and a manufacturers hallmark. Brand equity is an extremely valuable corporate asset that is expensive to build and easy to destroy.

Inventory management becomes even more critical to success as organizations emerge from the pandemic and seek opportunities to increase their competitive advantage and profitability. Today’s supply chain challenges demand new, innovative approaches. Inventory control of even the smallest items can provide great benefits when it comes to avoiding costly production disruption, not to mention emergency one-time purchases. SupplyPro develops new products with lower prices and more flexible customization options. In response to the business needs of small customers and changing expectations, SupplyPro has launched the new subscription-based UStockit platform that includes innovative low-entry cost inventory control solutions.

“We’re removing financial, implementation and resource barriers to enable even the smallest customers to access smart, cloud-based solutions that manage inventory and help prevent stock-outs,” said Floyd Miller, CEO, SupplyPro. “UStockit’s subscription model and the launch of UStockit Inventory Shelf Tag™ will be a game-changer in terms of implementation and cost. And we will have more exciting announcements before the end of the year.”

As the world reels from supply disruptions, many manufacturers are turning to inventory management for help during these uncertain times. Automating inventory management can reduce pressure on labor shortages. Using rich inventory management data to connect the shop floor to the top floor allows decision makers to leverage information to reduce uncertainty. Inventory is one of the biggest expenses for many small and midsize manufacturers. Clear visibility into transactions impacting the entire process of ordering, storing, and using inventory is critical to business success.

The sound of success

Successful companies deploy smart technologies, including inventory management solutions that prevent out-of-stock items by automating parts distribution and ordering, organizing components and parts into logical groups, tracking and reporting on assets, including managing compliance and providing real-time insights into availability, consumption, utilization and financial drivers of profitability.

The cost of stopping production can be enormous.
The cost of losing a customer can be catastrophic.

About UStockit

UStockit, powered by SupplyPro, is an all-new subscription service platform that brings together SupplyPro’s proven hardware and software, groundbreaking inventory management products, and exciting new low-cost solutions. UStockit subscription includes expert system configuration and management services, 24/7 SupplyPro customer support, unparalleled hardware warranty, and SupplyPro’s intelligent inventory control software (UStockit Web, UStockit Device and UStockit Mobile) in a low-cost, flexible monthly subscription. And when the subscription period is over, so is any responsibility for storing material or updating obsolete technology. For more information visit: http://www.supplypro.com/Content/pdfs/UStockit_AboutUs.pdf

About SupplyPro

Based at San Diego, California, SupplyPro is the leading provider of automated inventory management technology, with a device-driven, cloud-based ecosystem that seamlessly integrates with most in-house ERP systems and distributor delivery solutions. More than 1.8 million monthly users, from manufacturing to aerospace and high-tech manufacturing, rely on the SupplyPro platform to increase efficiency, profitability and competitiveness. For more information visit: http://supplypro.com/

All rights reserved. SupplyPro and UStockit are registered trademarks of SupplyPro, Inc. Inventory Shelf Tag is in public beta with patent pending. The information, features and services contained in this document are subject to change without notice.

Media Contact

Marcy RivardSupplyPro, Inc., 858-587-6403, [email protected]

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SOURCE SupplyPro, Inc.

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