4 Supply-Chain Challenges That Cloud Manufacturing Can Help With
Cloud manufacturing is a plug-and-play solution that provides buoyancy to hardware businesses. It does this by giving access to a global manufacturing network that is more resilient to supply-chain challenges.
In 2020, the global supply chain was disrupted due to the COVID-19 pandemic. Today, supply-chains are still being tested, and facing ongoing challenges because of the chaos that occurred 2 years ago.
As the world enters a new phase of unpredictability, hardware companies need to adopt technologies that can assure their resilience should the unexpected happen. Technologies that can help them maintain their level of business performance despite sudden changes.
One such technology is cloud manufacturing, which provides more resiliency and access to high-grade, on-time manufacturing than traditional procurement methods.
In this article we will cover the 4 main ways that KREATIZE’s cloud manufacturing platform can help hardware businesses become more immune to supply-chain challenges.
- Resilience Against Global Events
Global events have had a massive impact on supply chains.
Over the past 2 years, the COVID-19 pandemic and the Suez canal crisis showed the world how logistics costs and disruptions can radically impact the global supply chain. Companies have had to think about different means of production, and found some by looking for location-agnostic solutions. Cloud manufacturing provides access to global machining capacities, and is a plug-and-play solution to achieving this.
It is not just disasters or pandemics that are causing disruptions to the business operations of hardware businesses. Non-market events (e.g. government actions, regulations, etc.) across the globe are also impacting the way they operate. Government policies can have a big effect on the cost of doing business, and hinder the financial health of supply-chain operations, if approached through traditional methods of procurement.
How can KREATIZE Help?
“One of the ways KREATIZE can help is through its global cloud-manufacturing partner-network,” said Zod Mehr, Chief Supply-Chain Officer at KREATIZE. “If there are logistical issues in a certain geography, our well-capacitized global cloud manufacturing network can rely on its broad reach to alleviate any constraints imposed by geo-political issues, and ensure that our clients have on-time access to world-class quality parts,” added Mehr.
- Fast Access To Large Manufacturing Capacities
With supply-chains clogged, manufacturing entities are operating at full-capacity to meet pent up demand. Many have very little idle time, and do not have the capacity to onboard new customers or increase capacity.
Hardware companies in need of additional services and capacity have always run into the challenge of not being able to find reliable manufacturing partners fast enough. With the current global situation, this problem has become more accentuated.
Cloud manufacturing can again be a tool to alleviate these hurdles. Hardware businesses can plug into a cloud manufacturing platform, and gain immediate access to large manufacturing capacities.
How Can KREATIZE Help?
KREATIZE works with a sizable number of partners that are part of its global manufacturing network. It offers hardware companies the chance to use its network without them having to do any of the heavy lifting required to find a manufacturing partner.
“KREATIZE has an established relationship with its well-vetted manufacturing partners, and provides them with orders on a weekly or daily basis,” said Mehr. “We have greater influence and leverage with our partners than if a customer was hoping for the attention of a world-class manufacturer on their own,” continued Mehr.
- Finding Quality Manufacturers
This point is very much tied to our prior point.
The need for access to additional manufacturing partners can be a big challenge. Even if a company manages to find a manufacturer that can fill their orders, the process of ensuring that they can produce their desired custom parts with world-class standards on a recurring basis is very time consuming, plus expensive.
Cloud manufacturing offers a solution for companies that are in need of immediate high-grade manufacturing capacities. KREATIZE takes a step further though, by not only onboarding high-grade manufacturing partners through an extensive pilot program, but by also establishing quality standards that are carried out at source.
How Can KREATIZE Help?
“We have established quality standards with our partners that ensure pre-shipment inspection and quality checks,” said Mehr. “We do what’s called source-inspection, which means the parts are inspected at the source of manufacture prior to part shipment,” affirmed Mehr.
A lot of KREATIZE’s competitors rely on inspection hubs or other points after shipment.
“We believe that by then it’s too late to catch an out-of-spec part, so we have established clear guidelines with our partners to ensure they share with us the dimensional and cosmetic quality of the parts before they ship them,” said Mehr.
“Our manufacturing partners go the extra-mile because of our established ongoing relationship and history of placing large order volumes. This ensures a high-level of quality driven by their desire to satisfy a priority customer,” further explained Mehr.
- Recruiting Qualified Talent
One factor that is particularly making supply chain problems more complicated is the ongoing shortage of talent. Hardware and manufacturing companies are having to do a lot more with less people. This has a profound effect on the production of their goods, as it can hinder their time and efforts to carry out good business.
With cloud manufacturing, hardware companies do not have to recruit or procure their own talent to establish or strengthen their own inhouse manufacturing capacities.
How Can KREATIZE Help?
“By working with KREATIZE, a company can lower the need to hire extra people to keep up with demand or deal with increased workload,” said Mehr. “They can outsource a lot of their procurement tasks, and logistics to us,” concluded Mehr.
By relying on KREATIZE, customers benefit from our deep manufacturing know-how and partnership with high-grade manufacturers. This allows a client’s current staff to focus on more strategic problems, while reducing their overhead operating expenses.
Are you a hardware business that needs to overcome these challenges? Do you need immediate and actionable solutions?
KREATIZE would love to work with you, and wants you to benefit from the very best of today’s technology without having to completely overhaul your business.
KREATIZE provides manufacturing the world loves. We want to help your business with new tools, and assist you in delivering your products to the world with complete ease.
Start now by creating your account for KREATIZE Manufacturing Services today, and allow your hardware business to make a leap into the future of manufacturing.
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