With global trade slowed and bad weather increasing, businesses are rethinking the status quo in favor of reliability, even if it costs more. Some are moving production closer to home, buying suppliers or bringing contract work in-house.
Benetton Group, the Italian clothing purveyor, faced supply chain troubles so is cutting Asian production by half in the next year and moving work to European countries. They expect higher production cost to be offset by lower transportation cost and better merchandise. Sherwin-Williams faced resin production disruptions due to Gulf Coast weather problems so acquired Specialty Polymers Inc., with facilities in OR and SC, to raise output and cut severe weather risk. Home builder PulteGroup faced window, paint and appliance shortages, so plans to build 6-8 automated manufacturing facilities to increase in-house production and make up for a skilled worker shortage.
Changing manufacturing strategy is a big deal. MOSIMTEC simulation modeling can help. Explore options virtually to see what works, what doesn’t, and best ways to thrive in a changing world. Assess multiple production options, including impacts on cost, quality, inventory, reliability and risk, before implementing in the real world. MOSIMTEC can help. Read more about MOSIMTEC simulation consulting work here: https://mosimtec.com/simulation-consulting/
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Learn more here: https://www.wsj.com/articles/pandemic-rewrites-ceo-rulebookputting-reliability-before-efficiency-11635779679