Manufacturing & Distribution

Global Competition Demands Solid Financials

Many manufacturers and distributes have inserted themselves into—or found themselves in—the global supply chain. This is both an opportunity and a risk that companies must understand and plan for proactively.

Snyder Cohn understands this and other key trends and challenges that are impacting manufacturing and distribution firms, including:

• Increases in efficiency can be gained by reducing capital expenses and fixed costs through strategies such as outsourcing and leasing. These strategies are often used to free up resources for solidifying a company’s primary operations, expanding its geographic footprint or increasing research and development. In fact, some companies operate without owning any physical factories by employing contract manufacturers.
• New and more efficient production techniques are being developed to help adapt to the era of higher energy costs. Companies must evaluate and carefully determine when to invest in these enhancements as they are typically very costly and time-consuming.
• Significant improvements have been made in inventory management and logistics systems that enable more efficient inventory planning. Manufacturers and distributes must have a specific and proactive plan as to if, when and how they will invest in new systems.