Higher Demands on Manufacturing

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  • Mike Kinder
Higher Demands on Manufacturing

The New Manufacturing Environment 

At Veryable, we refer to it as “The Amazon Effect.”  If you own or operate a manufacturing business today, you may not be familiar with this phrase but you are most likely experiencing its impact.  The Amazon Effect alludes to the rapid increase in customer expectations across all industries and sectors: short lead times, high on-time delivery, customized products and services, shorter product life cycles, and personalized customer service.  In short, having a custom product on your doorstep within days is the new bar for customer expectations.

In light of the increasing customer demands, operational flexibility and agility have never been more important.  Manufacturers are feeling the squeeze: delighting the customer and continuing to increase productivity are difficult to achieve in parallel and are requiring many companies to rethink their operating models.  Successful businesses today cannot survive without doing both.

Impact on Manufacturing Businesses

“The assembly line can only work only if you have a standardized product” – Henry Ford

The ability to efficiently manage fixed assets and human capital with the help of technology enablers is the key to driving productivity and responsiveness.  Traditional supply planning methods are about targeting averages – this frequently leaves companies behind the ball during order spikes and with inflated cost structures during the troughs.  With many solutions now emerging to improve fixed asset efficiency, we see antiquated labor management practices as the next barrier toward unlocking a manufacturing renaissance in higher cost regions.  Operations managers know that that the real key to success is through operational flexibility, i.e., striving for the mythical “infinite flexible capacity.”

The New Paradigm for Labor Supply Management

We believe that the landscape is ready for a new paradigm shift that gets us closer to the operations manager’s aspiration.  The on-demand economy gives manufacturers a new option for labor flexibility and Veryable has developed an on-demand labor solution specifically catering to manufacturing and distribution environments.  Our vision is to create a real-time marketplace for labor on demand where businesses like yours never have to turn down orders due to labor capacity constraints and never get stuck with an inflated cost structure in a down cycle.  Infinite flexible capacity is now a real possibility.