- September 12, 2022
- Posted by: sadmin
- Categories: Customers
Circular Supply Chain ‘Can Ease Manufacturing Problems’
One way the circular economy can help organizations in addressing supply chain issues is by giving them with new, used, reconditioned, and outdated industrial automation supplies.
Manufacturing has experienced troubles with supply capacity and challenges swiftly adapting to changes in demand, much like many other industries. In fact, 97% of manufacturers of industrial and automotive equipment claimed that the pandemic had a detrimental impact on their business.
Executives indicate that the pandemic has caused them to reconsider the strategic importance of their supply chain because procurement and distribution concerns are affecting so many businesses globally. The manufacturing sector must undergo this transformation because manufacturers must reconsider their supplier chains.
‘Reduce, reuse & recycle’ is circular economy motto
Reducing waste during the production cycle is sometimes referred to as “reduce, reuse, recycle,” but this attitude may also be able to address supply chain problems. When replacement parts are difficult to locate, refurbished or reconditioned parts, which refer to original components that have been cleaned and whose worn or damaged components have been replaced, may be used in place of new components.
These should not be confused with repaired or used parts, which refer to parts whose testing and refurbishment procedure cannot be independently validated. Refurbished components are ones that have been given a second chance at life and returned to their original factory specifications, so the quality and lifespan should be identical to those of new parts.
Refurbished parts can help manufacturers shorten lead times, avoid unneeded downtime, and keep equipment functioning like new. Refurbished parts also come with the added advantage of quality assurance inspections and warranties that typically match the length and specifications of the equivalent of a new component.
Reconditioned or refurbished parts can make a significant difference by promoting the circular economy, maintaining efficiency, and cutting lead times if manufacturers are to get through the worst supply problems in almost 50 years.
According to the 2017 GEODIS supply chain global study, only 15% of businesses have full visibility into their supply networks, while 62% had only partial visibility. Keeping track of the location and condition of their product, predicting client demand, and monitoring the share of transport capacity were the top issues cited by business owners.
It may be difficult to spot dangers and potential interruptions in global supply networks, which could result in losses of money. This is due to the lack of knowledge necessary to recognise issues and take appropriate action.
Supply chain managers might invest in tracking technologies like sensors, barcodes and readers, or radio frequency identification (RFID) devices as an alternative to depending on manual data collecting. Information can be gathered and transmitted automatically in this fashion. The route of a product through the full supply chain may then be seen using the information gathered by these trackers.
This technique can help discover any inefficient regions in manufacturing, transportation, or storage, which can help increase efficiency and lower the demand for energy or resources. Investing in a reliable platform for supply chain visibility can also help you monitor your extended supply chain and identify problems that might stop items from being delivered to the next node on schedule.
‘Glocalisation’ is future for supply chain stability
The term “glocalization” describes the process of creating and disseminating a good or service globally while adapting it to meet the needs of customers or users in regional marketplaces. As goods in low-demand areas may be moved to where it is needed, this can assist in managing supply chain concerns. Local raw material sourcing allows businesses to simplify their supply chains and cut back on shipping costs.
Real-time data analysis is necessary to quickly transfer goods where they are required in order to achieve successful glocalization. However, by developing a cognitive supply chain that employs AI to collect and analyse data across end-to-end operations, this process can be automated.