While many industries have been hit hard by the pandemic and ensuing economic crisis, experts suggest that manufacturing remains at the top of the list for continued disruption in 2021—from small manufacturers to large scale.
Major breakdowns of supply chains (from raw materials and work-in-progress to finished products), a tight labor market and a fractured consumer base will likely remain steadfast challenges in the months to come. As such, the time is now for the industry to take action—to devise a plan to improve and streamline supply chains, bulk up its workforce, and enhance client relations. The goal is to both make up lost sales because of dips in 2020 and maintain momentum through 2021.
Why manufacturers have experienced so much disruption
While today’s supply chains are more forward thinking than ever, leveraging data and analysis to accurately forecast demand and optimize production, no one could have predicted COVID-19 and the mass disruption it would leave in its wake. Even the most nimble and data-minded manufacturers with sophisticated enterprise resource planning (ERP) and inventory management systems were forced to pivot quickly and rethink their strategy from the ground up.
Inventory management experts Mario Nowogrodzki, CPA. CITP, CEO, and Keith Fileccia, COO, at Mendelson Consulting, agree that 2020 was a year for the history books.