Five Cost Areas in Your Manufacturing Organisation that Need Your Attention in 2022

Protecting your supply chain and saving money

Manufacturing organisations are facing a huge range of pressures as we enter 2022. Some of these are a result of COVID, whereas others come from emerging opportunities in technology.

In an increasingly cost-driven world, the amount you’re spending in these cost areas can make the difference between having a tough 2022 or making it your most successful year yet.

Our advice is not to blindly accept any cost increases you’re facing as part of the current business landscape.

Inside our dedicated publication, we explore 5 crucial areas of your business that represent significant opportunities for not only protecting your supply chain but also for identifying areas where your actual costs can be reduced (or certainly the rising trend of costs can be mitigated).

Download the full publication today and begin taking advantage of the insights available inside. You can also find further details below of the specific topics being covered.

Supply Chain Disruptions

The COVID pandemic has laid bare the connectivity of our world like nothing else before.

Almost all major organisations have dealt with supply shortages over the last 12 months. As a result of the uncertainty, many businesses have had to downgrade their expectations going forward.

As the pandemic has proved, ensuring a robust supply chain is crucial to long-term cost optimisation.

Packaging

COVID pressures have hit many areas, some of which don’t immediately spring to mind. Packaging is a particular area where costs have steadily climbed over the last 6-12 months.

A significant issue has been the spiralling costs of papers, putting intense pressure on the price of cardboard packaging. However, the packaging sector has also suffered from the same supply chain issues as other industries.

Now, packaging costs have increased so much that they can no longer be ignored by organisations that rely on these products.

Carbon Neutrality

One of the biggest priorities for governments worldwide is transitioning to a carbon-neutral society. The general public is also increasingly aware of the importance of sustainability and is starting to make more purchase decisions with this in mind.

For manufacturing organisations, achieving carbon neutrality will need multiple strategies that look both inwards and out. Combining internal efficiencies and investments with an external approach involving carbon offsetting can help businesses reach their sustainability goals effectively.

Automation & MRO

MRO can often be a small cost when taken in isolation. However, with more dependence on informational and operational technology, these expenses will only increase. If left unchecked, these once minor expenses can spiral into hugely damaging costs on your organisation’s final balance sheets.

Automation is a vital pillar of any manufacturing organisation’s strategy, and MRO should be considered part of this. Having an advanced MRO strategy doesn’t only save you on unexpected costs, but it can also open up more opportunities for savings through negotiations with suppliers.

Cyber Security

Cyber security has gone beyond being an emerging threat. The consequences of not being adequately prepared are very real for many major manufacturing organisations.

Technology presents many opportunities, but it will also increase the number of potential security threats for which organisations need to be prepared.

An organisation-wide approach encompassing both information technology and operational technology is required to avoid cyber security threats. Manufacturers must ensure all staff are aware of and adequately trained against any potential threats. It is also worth checking that you are insured against cyber threats.