Improving your productivity beyond six minutes
We've said it already, but it bears repeating: Average manufacturers have only six minutes per shift to make the money they need to sustain growth. Why? Because, according to Dr. Jayson Myers, President of CME, it takes seven hours and 54 minutes out of every eight-hour production shift to cover the costs associated with operations, depreciation and taxes.
Clearly, this raises one key question: What are you doing to increase the amount of your productive time? This is no idle analysis. As competition in the manufacturing sector heats up, manufacturers must take steps to enhance their profits and lower costs if
they hope to remain relevant into the future.
As we've noted in this series of articles, one way for manufacturers to gain this competitive edge is b
ycollaborating more effectively with customers, suppliers and distributors. By improving collaboration, manufacturers can speed up their time to market, enhance customer service, realize greater supply chain transparency, reduce warehousing costs, accelerate cycle times and improve process efficiency. Best of all, they can achieve these goals in a phased manner by focusing on the areas most critical to their businesses.
To see how smart communications can be used as a foundation for business success, consider these real world examples:
When Carlson Wagonlit Travel, a leader in business travel management, adopted collaboration technologies, it reduced its maintenance costs by $80,000 per year and realized a $75,000 annual savings in real estate.
When EDS adopted collaboration solutions, it reduced its operational expenses by 20%.
Homes by Avi, a home builder in Alberta, has realized productivity improvements and enhanced customer relationship thanks to its collaboration technology.
Audio Ark, a supplier of high-performance audio and video systems, relies on a range of real-time collaboration tools to reduce costs, enhance security and streamline its IT administration.
Relying on over 20 years of experience working in the manufacturing industry, Stuart Pothan, Director, Professional Services at Allstream, has also accumulated ample evidence of the power of smarter communications. Based on discussions with industry experts across numerous organizations, he has established that:
Some manufacturers reduced supply chain costs by up to 50%, reduced inventory holding costs by up to 60% and saw up to a 50% improvement in order fulfillment by adopting integrated supply chain solutions.
Companies that engage in collaborative supply chain networks can reduce the cost of logistics by up to 13%
Businesses that use collaborative product portfolio management capabilities also enjoy 10% higher profitability than the industry average.
To realize these benefits, of course, it makes sense for manufacturers to work with partners who have experience enabling real-time communications between companies and their customers, suppliers and distributors. This is the expertise Allstream brings to the
table.
As the third largest Canadian telecom company, Allstream offers an end-to-end portfolio of Unified Communications, IP-based Connectivity, Professional Services and Security. We have ample experience working with businesses throughout the manufacturing sector and can help customize solutions designed to enhance connectivity, improve collaboration and streamline network management. To meet
manufacturers' current infrastructure environments and future needs, we also offer both premise-based and hosted collaboration solutions designed to help you manage costs while realizing a measurable return on investment.
As Canada's manufacturers continue to contend with international competition and tightening margins, it is becoming increasingly important to consider innovative and out-of-the-ordinary strategies that support growth and help contain costs. To learn more about how Allstream can help you achieve these goals, or to share comments or questions, contact David Lukey at Allstream at david.lukey@mtsallstream.com
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