Customer demand volatility is having real, negative effects on manufacturers’ bottom lines. When demand is low, suppliers are able to make sufficient quantities that meet these demands. When demand suddenly spikes, suppliers are struggling to produce adequate amounts – hurting sales and leaving customers unhappy. Couple this ailment with an increasingly global supply base – often resulting in lack of emerging markets supplier maturity (capacity/capability) – makes manufacturers’ visibility and control of meeting customer demands very difficult.
The key to balancing capacity in an upturn, inventory levels during downturns and managing customer demand throughout the business cycle is an agile supply base. By increasing a supplier’s possible capacity, a manufacturer’s entire value stream provides the framework for a truly agile enterprise.
CGN Global’s Capacity management starts with a thorough evaluation to accurately gauge the current state then rapidly plans and implements capacity improvement efforts to impact the OEM’s bottom-line, top-line and key performance metrics.
The key outcome of CGN’s supplier capacity transformation is the achievable idea of sustainability. Customer demand will always be a rollercoaster with twists, turns and 50-foot drops. Organizations often invest millions of dollars throughout the year increasing the capacity of their suppliers when needed, and are left with excess when demand suddenly takes a dive. CGN uses a workshop based approach to enable suppliers to be more efficient and effective and able to ramp up/ramp down capacity with ease, resulting in huge benefits to all parties’ bottom lines and invaluable customer satisfaction.
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