Strategy in the manufacturing sector

The manufacturing industry encounters sector-specific challenges daily. Reducing operating expenses, comprehending customer needs, preserving skilled employees and refining the supply chain are some of the demanding general challenges in a competitive market. At a certain level, businesses may encounter at least one of the following issues:

1. Vendors attempting to agree on new delivery times with customers who have increasingly high demands.
2. Suppliers failing to deliver top-quality materials and inputs on time.
3. Operations managers struggling to complete production with the available personnel and equipment.
4. The quality inspector frequently rejecting product batches that do not meet either the technical specifications or requirements of the customer.

We usually believe that these problems are part of the routine and put off dealing with them on the grounds that "they will be solved some other time". However, we only recognize their importance when their repercussions are manifested in financial outcomes, reputational perception, and a decline in competitiveness.

If the management team is unable to address these challenges or new ones arise, it becomes evident that the root cause is not operational but strategic in nature. Consequently, the company must delineate its business strategy.

Managing the company's strategy not only positions it effectively in the market but also generates valuable internal benefits both now and in the future. Through deploying the business strategy, employees reflect upon their contributions to the organization and recognize that they are part of something greater: the strategic objectives. This reinforces coherence between actions taken and management expectations, aligning the organization with its own real needs.

Implementing the strategy also empowers teamwork. By thinking strategically, we can solve the four issues I previously identified and transform them into triumphs:

1. Sales staff anticipate the risk of product delivery delays and liaise with the operations manager to schedule new deadlines and priorities.
2. The procurement department assesses and forges lasting alliances with reliable suppliers through formalized contracts.
3. The operations manager and the human resources manager utilize change management to enhance staff comprehension of the business strategy. They collaborate with the maintenance and reliability manager to preplan equipment availability.
4. Defective batches and their origin are reported to the operations manager by the quality inspector, and together they determine measures to reduce the error rate.

In brief, strategic management enables a greater comprehension of the company's true nature:

• Identifying and anticipating changes,
• Thinking ahead, and preparing for uncertainty,
• Improving coordination among individuals,
• Use resources rationally, and
• Assessing the impact of decisions and backing up contingencies.

Strategy makes the manufacturing company's business model viable and sustainable, even in challenging times. Business strategy planning is a chance that can only be grasped with the dedication of the individuals involved.