Global

Details

  • Industry: Industrial Manufacturing
  • Type: Survey report
  • Date: 9/20/2011

The shift to standardization 

The report reveals that diversification into new markets and new products will converge with a push toward input and process standardization. In response to both input price inflation and volatility, many organizations are prioritizing increased standardization. More than half of manufacturers polled (55 percent) plan to standardize production processes across sites, while nearly half (45 percent) will move toward standardized inputs across product lines.

Which of the following is applicable for your business in the
coming 12 to 24 months, in terms of its supply chain strategy?


supply chain strategy

Given the concomitant shift toward a greater focus on new products, however, standardization poses a risk of homogenous product lines that could fail to engage consumers. Another challenge will be managing the tensions that could arise between Sales and Procurement, as one function tries to push new products into the market while the other works to standardize inputs.

 

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