Avoid Getting Blindsided by Supply Chain Issues: Key Strategies for Product Manufacturers

In today’s rapidly evolving global landscape, supply chain resiliency has become paramount for product manufacturers striving to maintain a competitive advantage and ensure long-term success. The increasing frequency of disruptions, whether due to natural disasters, pandemics, or geopolitical tensions, underscores the urgent need for robust supply chain strategies. In a recent webinar, industry experts Jim Brown, President of Tech-Clarity, and George Lewis, VP of Product Strategy at Arena by PTC, explore the critical facets of supply chain resilience.

The Rising Tide of Risk and Disruption

The escalating nature of risk and disruption in business is particularly impacting supply chains. According to Tech-Clarity’s research, 74% of companies reported increased risk and disruption over the past five years. In 2022, nearly 46% of businesses identified supply chain disruption as the primary negative impact on their operations. This statistic is a stark reminder to product manufacturers of the necessity to anticipate and mitigate potential disruptions. As George Lewis highlighted, “The customers that have the most flexible solutions and processes internally are the ones that are most adept at adjusting to whatever supply chain disruption comes their way.”

The Importance of Supply Chain Resilience

Supply chain performance is intricately linked to business success, affecting lead times, time to market, profitability, and customer satisfaction. Two-thirds of companies acknowledge that supply chain performance significantly impacts these areas. By fostering resilience, businesses can preemptively address potential disruptions, maintaining operational stability and protecting their reputation. “The stakes are very high for getting it right in the supply chain and avoiding disruption,” noted Jim Brown.

Strategies for Boosting Supply Chain Resilience

The key to enhancing supply chain resilience is understanding the potential risks to your business and implementing mitigative measures.

Product companies that excel at supply chain performance often employ these strategies:

Adopt a contextual collaboration framework

Organizations use robust collaborative approaches to exchange product information, both internally and with external partners. This includes the adoption of cloud product lifecycle management (PLM) technology for enhanced data visibility and flexibility. As Brown emphasized, “If you don’t have your data managed properly and don’t have the right tools to do that, it is next to impossible.” The implementation of Cloud PLM technology, as demonstrated by companies like Nutanix, significantly enhances the ability to onboard new supply chain partners rapidly and efficiently.

Do more work upfront

Some companies apply traditional agile software development methodology to hardware in the early stages of development. Others take the time to solicit design for manufacturability (DFM) feedback from their supply chain partners. As Lewis highlighted, “It’s the shift-left strategy—doing more work early in development when it’s easy, allows for better flexibility later.”

Gain a consolidated view of your suppliers

Building supply chain resilience fundamentally starts with good data. Data connectivity and visibility across PLM, enterprise resource planning (ERP), and other business systems helps you understand who your suppliers are, monitor their performance, and identify potential risks they pose to your products.

Embracing Resilience for Long-Term Success

Supply chain resilience is not a one-time initiative but a continuous strategic objective that integrates data, collaboration, and technology. As supply chain disruptions become more frequent, manufacturers must prioritize resilience to safeguard their operations and ensure sustained business success. By embracing these strategies, product manufacturers can navigate the uncertainties of the global market with greater confidence and agility.

For a deeper dive into supply chain resiliency and strategies for balancing short-term and long-term risks, watch the full on-demand webinar here.