Explore how P&C Global leverages key manufacturing trends to drive innovative solutions. Learn how we navigate the supply chain crisis, champion regionalization, and secure advantageous negotiations for our clients, resulting in significant cost savings and growth.
At A Glance
Surge in Customer Satisfaction
Reduction in Carbon Footprint
In Annual Cost Savings
Increase in Manufacturing Output
At P&C Global, we have been closely observing the evolving trends in the manufacturing industry, and we are excited to share our insights and how we have been leveraging these trends to create innovative solutions for our clients.
A thoughtful Fast Company article written by Philip Stoten highlights three key trends driving scale in manufacturing: the supply chain crisis, regionalization, and the need for a seat at the negotiating table. These trends present both challenges and opportunities for manufacturers.
Key Trends
The ongoing supply chain crisis, particularly the shortage of chips, has led to increased demand and longer lead times. This has resulted in dissatisfied customers and increased inventory, impacting cash flow. Still, there are opportunities for manufacturers with scale to leverage their buying power for better access to suppliers.
The pandemic has accelerated the trend for more regional manufacturing. Manufacturers are prioritizing supply chain security and continuity over low-cost labor. The move toward manufacturing in-region-for-region is not only more sustainable but also reduces the carbon footprint.
In the dynamic landscape of manufacturing, the strategic alignment of outsourcing partners is becoming a critical factor in decision-making. Both Original Equipment Manufacturers (OEMs) and manufacturers are acutely aware of this.
The most lucrative contracts from major OEMs are often earmarked for manufacturing companies that possess not just the scale, but also the reach to service the end user. This often necessitates a blend of technological prowess and expertise, but more frequently, it demands a combination of scale and geographical diversity.
Consider a global OEM with a mission to deliver to markets worldwide in substantial volume. They need assurance that they can wield significant influence with their manufacturing partner.
For instance, if a brand has $100 million of manufacturing to outsource, they prefer to constitute between 10% and 15% of their manufacturing partners’ revenue. This ensures they receive the appropriate level of attention and influence. Consequently, such an OEM will likely consider partners with revenue exceeding $750 million.
To even be considered for such a deal, a manufacturer must demonstrate scale and geographical diversity. Manufacturing companies are cognizant of this and understand its growing importance. They are scaling up not just to gain influence but also to secure a seat at the negotiation table. This is a strategic move that can open doors to significant opportunities and partnerships.
We help them evaluate potential manufacturing partners, considering not just their scale but also their geographical diversity and technological capabilities. This ensures our clients can secure the most beneficial partnerships and contracts, ultimately driving their growth and success.
At P&C Global, we have been leveraging these trends to create innovative solutions for our clients. Here are three recent client engagements:
In a strategic partnership with a renowned tech giant with over $20 billion in annual revenue, we tackled the supply chain crisis head-on. Our comprehensive supplier evaluation and strategic sourcing led to a significant enhancement of their manufacturing scale. The result? A remarkable 30% reduction in lead times, a 20% surge in customer satisfaction, and an impressive annual $15 million in cost savings.
We collaborated with a global automotive powerhouse with over $10 billion in annual revenue to transform their manufacturing processes. By assessing their supply chain and introducing new, regional manufacturers, we significantly reduced their carbon footprint by 25%, bolstered supply chain security by 15%, and achieved $20 million in annual cost savings.
We empowered a global retail titan with over $15 billion in annual revenue to secure a coveted seat at the negotiating table with major OEMs. Through meticulous supplier evaluation and strategic sourcing, we negotiated favorable terms that led to a 20% increase in their manufacturing output and a staggering annual cost savings of $30 million.
These engagements highlight the opportunities presented by the current trends in manufacturing and how P&C Global can help organizations harness these opportunities to drive growth and innovation.
In conclusion, while scale is a significant factor in the current manufacturing landscape, it’s not the only one. The breadth of services offered, and the depth of partnerships manufacturers can create with their customers are also crucial. At P&C Global, we are committed to helping our clients navigate these trends and seize the opportunities they present.
We invite you to reach out to us to explore how we can help you leverage these trends to drive your growth and innovation. Let’s create the future of manufacturing together.