5 Factors Of Contract Manufacturers That Meet Forecasted Demand
December 18, 2015
If your OEM’s demand changes on a weekly basis, or even on a daily basis should emergencies occur, your metal manufacturing partner must be able to adapt. That means providing a consistent level of service regardless of your forecasted demand.
Suppliers must also be flexible to your seasonal cycles. Demand patterns may emerge over a period of years, so a vetted supplier should be prepared for each season armed with the right knowledge.
For example, the construction equipment industry is usually busiest from February through July, so suppliers to construction equipment OEMs must be ready to ramp up production during those months without creating issues such as late deliveries or low-quality metal parts.
To meet your forecasted demand, look for a contract manufacturer that features these five key elements:
1. Adequate Floor Space
Your business can’t grow quickly if your supplier hasn’t already made the necessary capital investments to sustain healthy growth. Your OEM contract manufacturer should have adequate floor space to manufacture metal parts efficiently and meet high forecasted demand.
2. Advanced Equipment
A supplier should demonstrate its willingness to invest in your growth by purchasing appropriate machines ahead of time. Ensure your metal manufacturer has a wide collection of advanced equipment to meet your metal fabrication, specialty welding, machining, finishing and assembly needs.
3. Budget For New Equipment
While the right supplier offers a full range of equipment, it may need to purchase a specific piece of machinery to manufacture a unique metal part most efficiently. Your metal manufacturer must have the budget to invest in new equipment needed to optimize metal manufacturing processes.
4. Routine Methodology
This is the most important element for meeting forecasted demand. Metal manufacturing processes that deviate from a routine tend to become disorganized and inefficient when demand sharply increases.
5. Financial Stability
A supplier that’s not secure financially puts your business at risk. Financial stability is critical to support capital investments and ongoing services, especially when your demand rises.
While these five elements are vital to meet forecasted demand, your contract manufacturer shouldn’t stop here. Look for a supplier that carefully records all of your forecasting data, stores it for historical purposes, and analyzes it to see trends by industry and customer.
Each month, your supplier should consolidate forecasting data during a sales and operations planning process, so it can interpret future demand and determine production schedules and capacities.
An OEM contract manufacturer that goes the distance in helping you meet forecasted demand is not just a supplier, but a true partner. As a team, you work together to plan for the future and meet forecasted demand.
Ready to learn how Miller can meet your forecasted demand? Schedule a consultation today.