Emily Curran - Senior Product Manger | SPS Commerce Mon, 27 Oct 2025 18:47:58 +0000 en-EUR hourly 1 How manufacturers can eliminate the stress of frequent change https://www.spscommerce.com/eur/blog/how-manufacturers-can-eliminate-the-stress-of-frequent-change/ Thu, 01 May 2025 09:57:56 +0000 https://www.spscommerce.com/?p=735703 Think of a house of cards. Each piece that you add to the tower plays an extremely important role in supporting the others, but the failure of one always leads to a total collapse. You can view suppliers and their relationship with manufacturing partners in a very similar way.

Suppliers play a major role in the supply chain for manufacturers, providing raw materials and different components necessary for manufacturing. However, there are plenty of challenges that can arise, often affecting their supply chain partners in a detrimental way. When these challenges arise—oops! The house of cards topples, and manufacturers don’t have what they need to make and send out their products on time.

Manufacturers depend on their suppliers’ stability, but frequent changes are the culprit of manufacturing obstacles. Luckily, there are easy ways to identify and mitigate these risks before they become overwhelming.

What’s driving frequent changes

When one supplier can’t hold up their end of the agreement, all other supply chain partners are impacted as the order changes to accommodate adjustments.

There are always changes in the supply chain that are expected, including weather-related issues or global import/export delays that slow down order fulfillment. However, there are several trends that drive increased risk for changes that affect supply chain stability.

Some factors that have increased frequent changes in the supply chain are:

COVID-19: Since 2020, the pandemic has had cascading effects on global supply chains and material availability. Whether it’s a personnel shortage or delayed freight lines, the effect of COVID-19 is still creating obstacles in the supply chain.

Geopolitical conflicts: Conflict creates disruptions that trickle down, affecting material sourcing and transportation routes.

Rapid inflation: As inflation rises, supplier costs and raw material prices increase. Some supply chain partners may need to make decisions that affect their partners upstream or downstream, such as halting production or changing the product materials.

Vendor diversification and collaboration are critical

How can we combat the negative effects of frequent supply chain changes? Vendor diversification and stronger partner collaboration are the answer.

The risk of supply chain changes is simply too important to ignore; if you’re missing a crucial manufacturing component, you can’t produce. Spend time investing in your suppliers to ensure you’re working with reliable, trustworthy partners.

It’s also crucial to diversify your vendors to have effective risk management practices. This way, if one supplier fails, you have a backup option. It can be tempting to wait until you need a new vendor, but by having another one on hand, you’ll have options when you’re missing a critical material for production, saving you the hassle of delays (and not to mention, a lot of money).

Spreading business across multiple suppliers helps manufacturers:

  • Minimize reliance on any single source.
  • Enhance supply chain resilience to better withstand unforeseen challenges.
  • Reduce vulnerability to disruptions.

Strategies for supply chain disruption mitigation

The key to mitigating supply chain disruptions and frequent changes is agility. Being agile in your supply chain processes means you always leave yourself with plenty of options when an alternative solution is needed. Some strategies for agility:

  • Regular assessment and expansion of your supplier base.
  • Implementation of vendor quality measures and monitoring systems.
  • Establishment of contingency plans for quick adaptation to supplier changes.

Additional steps manufacturers can take to enhance supplier collaboration:

Improve your data transparency and timely communication

Enhance visibility into orders and inventory. Leverage technology that can provide real-time data to better communicate with your suppliers and ensure everyone is on the same page. More transparency can also help identify potential issues faster, and you can address them before they escalate into larger problems.

Effective communication channels significantly reduce delays that are caused by misunderstandings or a lack of information.

Automate procurement processes

Automated procurement processes help you avoid reliance on manual methods like paper, email and phone-based updates, which are manual and time-consuming. By introducing automation, you can save time while avoiding delays and errors.

Automated systems ensure that order updates and inventory levels are promptly communicated, allowing faster and more accurate decision-making. Automation can also play a huge role in invoice entry and reconciliation.

Alleviate the stress of frequent changes

It’s a good time to evaluate your existing processes and learn how you can improve your agility and collaboration to strengthen your supply chain. Prioritize vendor diversification and automated procurement to boost your confidence in disruption preparedness. Remember: a resilient supply chain is the key to success.

If you would like to learn more about the possibilities for optimizing your supply chain, please contact us.

]]> The importance of effective demand planning https://www.spscommerce.com/eur/blog/importance-of-effective-demand-planning/ Tue, 19 Nov 2024 21:35:42 +0000 https://www.spscommerce.com/blog/importance-of-effective-demand-planning/ Just as an orchestra requires each instrument to work harmoniously, effective demand planning is key to a manufacturer’s ability to produce quality products efficiently. Missing one element? Challenges will arise.

What is demand planning?

Demand planning is a process that manufacturers can implement into their supply chain to predict upcoming demand for certain products. Manufacturers use this gathered information to adjust output, balance inventory levels and ensure customers receive their products when they want them.

It involves the orchestration of all resources, schedules and workflows that are necessary for manufacturing products. Each element must operate in harmony to achieve true efficiency.

The key components of demand planning

  • Demand forecasting: Anticipate customer demand to determine the necessary materials and equipment.
  • Scheduled production runs: Coordinate labor and production timelines to ensure timely delivery of products within budget.
  • Data accuracy: Ensure data is accurate to meet constantly moving targets and remain agile in the supply chain.
  • Long-term planning: Begin planning, sometimes up to a year before sales will occur. Often, manufacturers work on a 90-day rolling calendar that accounts for regular “resets.”
  • Retailer resets: Retailers typically finalize their “reset” strategies for planogram teams several months in advance. Be ready for December before September begins.

Demand planning challenges

As with any supply chain process, there are a few challenges that can arise, including inaccurate forecasting and trouble adapting to changes.

Inaccurate forecasting: Poor demand forecasting can lead to either overproduction or stockouts, disrupting the entire supply chain.

Adapting to change: Difficulty in adjusting plans to align with real-time data and market fluctuations complicates the planning process.

Strategies to improve demand planning

As the importance of demand planning becomes more evident, many brands are taking steps to prioritize the process. There are a few strategies that manufacturers can use to improve their demand planning practices.

Data-driven decision making

Relying on accurate sell-through and sell-in data allows brands to evaluate performance across key accounts and product lines. Data accuracy is essential for building trust and guiding strategic decision-making.

Leverage market insights

Access to comprehensive market and industry data helps brands identify growth opportunities and challenges, enabling them to stay ahead of competitors.

Enhance planning and forecasting

Streamlined processes, such as item setup and demand planning, remain crucial as brands move into 2025 and beyond. Developing effective forecasting skills is vital for profitability and operational efficiency.

Optimized data integration

Close collaboration between technology and business development teams is necessary for seamless data integration across internal systems. This alignment allows for quick, informed decisions on inventory management, procurement and replenishment, driving better business outcomes and supporting brand growth.

Get started with better, strategic demand planning

Demand planning is a dynamic and complex process that requires careful orchestration and constant adaptation to succeed. By leveraging data-driven strategies, market insights and effective collaboration, manufacturers can enhance their demand planning capabilities and navigate the challenges of the ever-evolving marketplace.

To learn more about how to implement demand planning into your supply chain, discover the Manufacturing Supply Chain solution from SPS Commerce.

]]> How to combat production delays with a supply chain solution https://www.spscommerce.com/eur/blog/how-to-combat-production-delays-with-a-supply-chain-solution/ Tue, 19 Nov 2024 18:45:07 +0000 https://www.spscommerce.com/blog/how-to-combat-production-delays-with-a-supply-chain-solution/

No one likes waiting, especially when it comes to getting your products to your customers on time. Unfortunately, production delays are sometimes inevitable. These delays create a ripple effect, disrupting schedules and customer shipments. Missed shipments can affect customers’ deadlines, impacting revenue and their relationships with trading partners. Production delays can stem from too much downtime after an equipment breakdown or a lack of necessary materials, leading to major inefficiencies.

While these delays may be inevitable, there are still steps manufacturers can take to reduce the frequency or effects of production delays. Reducing production delays boosts productivity, customer satisfaction and savings.

What causes delayed production?

When you’re working with many partners within a multi-faceted supply chain, there are always going to be elements that are outside of your control. It’s important to understand how and why unexpected obstacles can cause production delays.

Stockouts

Missing any necessary raw materials? Expect production to halt, which leads to bottlenecks and longer lead times. When you don’t have access to every single material you need, you can’t make your product and will need to reconsider your re-ordering process and lead time.

Supplier delays and supply chain disruptions

Up to 70% of supply chain issues occur pre-shipment. Raw material shortages, transportation issues and late supplier deliveries can all have a ripple effect across all aspects of the supply chain. When this happens, rescheduling production runs can really extend the amount of time to customer delivery.

One beverage supplier uses the example of a four-week window. If they don’t have everything they need to stage and run the line, they miss their production window and are delayed an extra four weeks until their next scheduled run.

Lack of transparency and timely communication

Many manufacturers lack visibility into their orders and inventory. Without real-time data and effective communication with partners, production planning becomes a challenge. Timely updates on inventory levels and order status are crucial for avoiding bottlenecks and delays and ensuring smooth operations.

Labor shortages

Since 2020, finding skilled workers to run manufacturing equipment has been a challenge. Production often gets delayed because there aren’t enough staff to operate lines and/or machinery. Without these skilled workers, there’s no one to ensure products are able to be made.

Recently, many companies have reported plenty of job openings they have been trying to fill, further supporting the claim that there is no job shortage but merely a labor shortage.

Equipment malfunctions

Equipment malfunctions are bound to happen, especially when working with aging machinery and maintenance. Even if you have the right parts and personnel, repairs may be easier, but any lapse in production still causes delays. Of course, the sooner these repairs can be made, the better.

Poor planning and forecasting

Demand planning and forecasting isn’t a science—it’s an art. When there’s misalignment between demand forecasting and production capacity, companies may need to juggle their schedules to ensure products go out on time. A lack of planning will always catch up to manufacturers.

What are the effects of delayed production?

Delayed production is more than just an annoying setback. It can be detrimental to a business, especially when they value customer experience and vendor partnerships. It can also have a major impact on your business’s bottom line.

There are many effects of delayed production that you may not realize, including:

  • Increased costs: employee overtime, expedited shipping fees and penalties for missed deadlines.
  • Customer dissatisfaction: loss of business and damaged relationships.
  • Supply chain backlogs: cascading delays that affect the entire production and supply chain.
  • Negative impact on competitiveness: risk of losing market share to more agile competitors.
  • Damaged partner relationships: unhappy vendors may choose to halt business with your company.

How can I combat delayed production effects?

While you can’t predict the future, you can prepare for it. With strategies from your supply chain partner, you can take a few steps that lead you in a more positive direction when the next production delay occurs.

Optimize your supply chain management

Build stronger relationships with reliable suppliers to mitigate the risk of delays. Diversify your supply sources, so you have other options if the delay originates on their end.

Implement predictive maintenance

Integrate new technology for proactive maintenance to reduce equipment downtime. When you can see that equipment will need to be updated soon, you get ahead of any delays.

Stronger workforce training and flexibility

If your workers are cross-trained to adapt to production shifts, you can minimize delays. Promoting flexible employees can help when things start to go in an unexpected direction.

Automate purchasing and procurement processes

Avoid relying on paper, email and phone-based order updates, which are slow and open up room for error. When you have the right visibility into your supply chain, you can assess and pivot quickly.

Ready to get ahead of the next production delay?

By being well-prepared with a plan for procuring and managing materials, you can ensure that you have the supplies they need when you need them. Avoid production disruptions caused by material shortages and keep production costs down by mitigating the need to expedite shipments or make last-second arrangements.

Learn more about Manufacturing Supply Chain solution, the SPS Commerce solution for those involved in the manufacturing supply chain. Plus, read through the rest of the blog series for Manufacturing Supply Chain, with How manufacturers can eliminate the stress of frequent change, The importance of effective demand planning and A comprehensive overview of business manufacturing problems.

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