Essay on Manufacturing
Manufacturers play a key role in the manufacture and sale of a certain product in the market. In this case, it is notable that for any country’s manufacturing sector to remain competitive there has to be critical factors towards its long-term propensity and growth resulting from economic growth. This is the first step towards remaining competitive in the changing world. Therefore, from a global point of view, manufacturing sector has an obligation of creating an economic ecosystem that is sustainable and encouraging. The chain should target the foreign investment and domestic market, in order to rise a country’s balance of payments.
As a result, jobs are created not only within the manufacturing sector, but also in other areas such as financial services, development of infrastructure, and its management (Dornier, 1998). It also improves areas such as logistics, information system, and support to customers among others. It is clear that a country’s rational capital and innovativeness are based on a strong manufacturing sector. Manufacturing sectors are also influenced by a number of global and market forces as well as risks such as a sensible pressure that results from foreign competitors and the available opportunities in the market that are created by foreign customers. Some of these competitors are well-established investors who dominated in the market for quite some time. There is also availability of foreign competitors in home markets that have a significant effect on their business.
This is mostly caused by the lack of strong rules and regulation governing and protecting the domestic market from external influences. It is also clear that there is a big demand in both emerging and foreign markets which can be met by companies. An increase in the products demand all through the world acts as a global information propagation. It is clear that meticulous markets in most case frequently dish up with an aim of driving technological advances in some areas. Companies also find themselves at a risk of being forced to come up with an enhancing leading technologies and products. However, such poducts can be used in the maintenance of market position in other areas where the market competition is not stiff.
In relation to the global market forces, as well as risks, technology plays a key role. Some of these risks and forces caused by technology include; production of same products, differences in technologies that are available in different markets and locations. Successful firms take advantage and march forward towards exploiting these resources effectively and quickly (Mentzer, Myers, & Stank, 2007). In should be also noted that as the product cycles shrink it becomes hard to locate research facilities that are crucial in the manufacturing. Finally, there may be availability of technological experts in certain markets that are not found in other areas.
In the review of global logistics based on manufacturers, it is also essential to draw attention on to the development chain. This aspect mainly focuses on the development as well as the formation of the supply chain (Gourdin, 2006). The main aim is to determine whether this will help in the effective deliverance of manufactured products to the final users or customers. The common chain flows from the manufacturer along suppliers then retailers and finally to the customers.On the other hand, a supply chain is vital to a manufacturer.
A supply chain refers to a set of one or more companies that are linked with down or upstream flows of products, finances, services, and information from a certain source to the customer. An effective supply chain should have components that have direct or indirect influence and ability to meet the customers demand. It is clear that a company’s competitive strategy focuses on defining the customers, and it aims at satisfying customer demands through the services and products that it offers in the market. Therefore, manufacturers should come up with clear and good supply chain strategies that enable them to determine the procurement nature of raw materials, transportation, and their manufacture in order to distribute the appropriate and quality services and products to the customers. Manufacturers key objective in supply chain management (SCM) is to attain a strategic fit based on a competitive strategy, as well as a supply chain strategy. Therefore, in order to achieve this strategic fit, manufacturers should first try to understand the customers demand which will help in the definition of costs and service.
They should focus on understanding the customer requirements of the supply chain. This will enable them to design and be able to manage their supply chain in line with the customers demand. The supply chain designed should be flexible so that if a mismatch occurs on the supply chain ability to meet the customer’s expectation and demands it can be easy to alter its structure as well as its strategies (Waters, 2007). Firms have new ways of managing the supply chains. Such changes were caused by the innovations that are geared by information technology.
The areas highly affected are on upstream procurement, sales downstream, and overall information sharing through the supply chain. Through information technology, there has been a rise in inter-firm processes capability which is digitally enabled. As a result, supply chain partners are incorporated through information flows.Social media plays a key role in creating awareness of a certain product. Manufacturers use the media to pass the message about a new product in the market or to remind the potential buyers of existence and continued availability of a product in the market. The social media educate customers on the usage of certain products.
Culture has an enormous influence on the products being produced in a certain region. It is a key factor to consider before coming up with a certain brand of products. For example, clothes manufactured in the European countries are not the same as in Africa because of cultural diversity.