Despite a year-on year recovery of 87.9% in April, the spread of the coronavirus, recent violent protests and looting, and crippling power challenges have caused a slowdown in the manufacturing sector’s recovery over the past few months.
With these challenges in mind, management consulting firm Kearney has taken a decision to postpone the 2021 Factory of the Year competition, traditionally a highlight of the annual Manufacturing Indaba.
The event was originally scheduled for November this year.
“The competition will resume as soon as safely possible,” said Frances Phillips, a manager at Kearney.
The company has however recognised the need for manufacturers to build new strategies that will ensure business continuity and limit the impact of the pandemic on industry, society, and the economy as a whole. In collaboration with the World Economic Forum, it has therefore engaged with more than 400 senior operations and supply chain executives to come up with the following best practice responses to assist manufacturing firms to fortify resilience and protect employees:
- Supply chains should be optimised by carefully managing interdependent levers such as dual sourcing, complexity reduction, and supply chain localisation. This would require different approaches, informed by factors like location and economic context.
- Further investment into advanced manufacturing technologies should be pursued. During the Covid-19 pandemic innovations in advanced manufacturing and integration and novel technological approaches proved crucial in ensuring a swift reaction to the crisis, enabling, for example, the rapid manufacture of medical supplies and products.
- A consistent risk-management system will be an essential mechanism in manufacturers’ toolkits, and many operational models will need to be adjusted to allow for more flexible, decentralised manufacturing. Decentralising shortens supply chains and ensures contingencies for localised challenges or setbacks.
- External relationships must be completely redefined, allowing firms to capture new opportunities through cross-sector collaborations. In addition, product portfolios should be carefully interrogated, to reduce complexity and optimise strategic focus.
The new competition dates are yet to be announced.
