Industry Trends
Implement Lean Manufacturing
Successful specialty vehicle manufacturers implement lean manufacturing practices to gain competitive advantage in light of fluctuating (often seasonal) product demand, high inventory carrying costs, undetermined demand for new models, and the frequent need to customize their products on an individual order basis. Lean manufacturing emphasizes the reduction of lot-size and inventory (while increasing throughput) and is ideally suited to the build-to-order requirements found in many sectors of the industry. It is also well suited for those sectors building to-stock that are faced with high carrying costs and seasonal demand for their products.
Lean principles guide manufacturers to design products and manufacturing processes around efficiency. Best practices include flexible work centers/ lines and the use of common components. In addition to the benefits brought by improved throughput and reductions to carrying costs, lean operations allow successful specialty vehicle manufacturers to leverage manufacturing processes capable of meeting market demand more affordably, often a source of competitive advantage.
Maximize Profits With Aftermarket Service Opportunities
Market price pressures tend to squeeze margins on initial sales. Successful specialty vehicle manufacturers combat this by improving their design and manufacturing processes to reduce costs. In addition, they step up their aftermarket services to maximize profit. By coordinating with dealers and suppliers, OEMs can improve profitability by reducing the costs of providing under-warranty service and increasing revenue from out-of-warranty services.
What Does It Mean?
Successful specialty vehicle manufacturers need information systems that support lean operations. They need systems that can handle the sales, design and planning of orders for custom products while considering constrained resource (material and production) availability. In addition, these systems must be able to build manufacturing schedules and provide accurate delivery promise dates at the time the orders are placed. Manufacturers must also be able to manage relationships through robust information systems that combine the customer, product and maintenance history data with product knowledge management, and service part inventory management.
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Success Stories:
Tactical Vehicle Systems
uses MAPICS (now Infor) solutions to streamline outsourcing processes by automating its supply chain.
Fleetwood Folding Trailers, Inc.
uses MAPICS (now Infor) solutions to give dealers the ability to enter orders and check on order status in real time.
Club Car
uses MAPICS (now Infor) solutions for a robust and flexible way that improved business performance visibility with access to real-time transactions..
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