And finally, the digital transformation is helping companies discover and monetize new business models. That might mean delivering new value added services for the fleet of products forming your installed base. Or it might mean creating entirely new revenue streams for your company.
Operations, Continuous Improvement, Information Technology, Manufacturing, Quality, Supply Chain
On June 14, 2018, MAPI will hold its inaugural Operations Data Analytics Forum in Rosemont, IL. Akshat Thirani, co-founder and CEO of Amper Technologies, a technology company on a mission to build modern and practical tools for manufacturers to get complete visibility and analysis on their operations, will co-present on the business outcomes of using data analytics and IoT in manufacturing operations.
Akshat took the time to answer a couple of questions to lay the foundation for his presentation and give us a little more insight into his background.
Operations, Information Technology, Manufacturing, Procurement, Quality, Supply Chain, Logistics
In an increasingly digital world, surrounded by connected devices, manufacturers are recognizing the necessity and benefits of moving from a linear supply chain model to a flexible, digital supply network (DSN). DSNs integrate data and information from the various sources that contribute to the production and distribution of manufactured goods. This data is available instantaneously, allowing manufacturers to make quick decisions and adapt to changing market needs. Additionally, DSNs reduce product costs, increase profitability, and improve quality. With wide-ranging benefits, one would expect that a majority of manufacturers have implemented DSNs. However, according to a survey conducted by MAPI and Deloitte, only 28% of respondents have started implementing DSN solutions.
The 2016 Panama Canal expansion added a third set of locks while doubling its shipping capacity. With the physical enlargement came a new transit booking system and a slot auction. Both addressed bottlenecks by shortening wait times at peak seasons. In its first fiscal year of operation, the number of ships rose 3.3% while total tonnage increased 22%. This singlehandedly stemmed from the new maximum size of Panama vessels that can transit. As expected, the expansion resulted in some diversion of traffic, higher demand for passage, and new investment in ports – primarily on the East Coast – to accommodate larger ships. The greatest potential impact for manufacturing companies will be on trucking capacity.
Global Economy, Competitiveness, Economic Environment
At a time where there is too often a commonly held belief that U.S. manufacturing is in decline and is a poor career choice, the Daniel Meckstroth Award for Excellence in Manufacturing Research aims to showcase the value and improve the competitiveness of American manufacturing through original economic research. MAPI is proud to co-present the winners, Kevin L. Kliesen and John A. Tatom, with the inaugural award for their original research titled,"Is American Manufacturing in Decline?”.
Recent turbulence in the stock market is a wake-up call to manufacturers, and to all businesses. The measurable rise in the yield on the 10-year Treasury note, now at the highest level in four years, has arguably been the primary catalyst for the equity market rout. This rise spurred to some extent by credible hints that long-dormant inflation might be on the cusp of increasing, has been a signal that financial conditions will eventually, and perhaps quickly, tighten to more normal levels.
In spite of the tumult of a reawakening global economy whose U.S. benefits were constrained by escalating political uncertainty, two destructive hurricanes, and an alarming confrontation with North Korea, U.S. manufacturing managed a rather bland but steady growth performance during 2017. The Federal Reserve reported that after two difficult years of essentially zero output gains, growth in the factory sector logged 1.3% during 2017.
In October, MAPI held its most attended webinar of the year: Transfer Pricing & Customs Valuation. In today’s cross-border business environment, transfer pricing and U.S. Customs valuation are integral, and companies must have a clear understanding of the unique requirements of each to the business.
Global Economy, Competitiveness, Government Policy
It’s a fitting time of year for miracles, and the Tax Cuts and Jobs Act, passed by Congress today fits that description. Granted, the first major tax overhaul in more than three decades is not a panacea. It’s come under an increasing amount of criticism from many factions.
A combination of dynamic and powerful forces including cyber risk, ever-accelerating technological advances, regulatory complexity, natural and human-made catastrophes, and globalization of the supply chain confronts manufacturers more than at any other point in history. To respond to this continually evolving array of risks, executives need robust tools and fresh insights to support their understanding of the risk landscape, as well as to accurately assess the sophistication, effectiveness, and maturity of their risk management programs.