Categories
News

InterAct supports Women in Manufacturing: ‘Changing perceptions’ conference

InterAct representatives including Co-director, Professor Jillian MacBryde, were pleased to support the Women in Manufacturing initiative’s ‘Changing Perceptions’ conference on 31st October 2023.

Hosted at the state-of-the-art Manufacturing Technology Centre facility in Coventry, the event attracted industry leaders, policymakers, and aspiring professionals from across the country to share ideas and discuss the biggest challenges to female participation in manufacturing today.

The ‘Changing Perceptions’ conference was organised by the Institute for Manufacturing, University of Cambridge (IfM) and Innovate UK’s Made Smarter Innovation programme, with support from the High Value Manufacturing Catapult, InterAct and Lloyds Banking Group. It marks a major milestone in the activities put together by the Women in Manufacturing Initiative, a group dedicated to improving diversity and representation within the manufacturing sector.

Although women represent almost half of the labour force in the United Kingdom, they account for only 26% of all workers in the manufacturing sector.

Gender norms and stereotypes still segregate women and men into different occupations and economic activities. Women are also underrepresented in leadership positions, and this lack of diversity influences decision-making and firm performance.

The morning sessions of the conference sought to address some of the influencing factors behind these issues looking at: ‘Perceptions of Manufacturing: International Perspectives’, ‘How to Network Effectively’ and a panel discussion on ‘Promoting Diversity in the UK Manufacturing Sector’.

Dr Jennifer Castañeda-Navarrete (left) and Dr. Dalila Ribaudo present some of the findings of their InterAct funded research on ‘International Perceptions of Manufacturing

Throughout the afternoon, a series of workshops delved into various aspects of women’s roles in manufacturing, covering topics such as career advancement, mentorship programs, and strategies to overcome gender bias. Attendees had the opportunity to engage with seasoned professionals, share experiences, and gain insights into navigating the challenges unique to women in the manufacturing workforce.

InterAct Co-director, Professor Jillian MacBryde leads a workshop on her Future of Work ‘Perceptions of Manufacturing’ survey findings

Speaking to conference supporters Lloyds Bank about the importance of the event, organiser and Head of Industrial Technologies and Manufacturing at Innovate UK, Dr. Megan Ronayne said: “One of the main advantages of increasing diversity in manufacturing is that it raises innovation in the sector” and this can help to offset skills gaps and shortages in the workforce.

Whilst the Changing Perceptions conference made it clear that these are long-term issues, that require long-term solutions and investment to overcome, the enthusiasm and ideas generated for the Women in Manufacturing initiative was an inspirational takeaway for attendees.

If you want to learn more about how you can take practical steps to help address these challenges, you can read Dr. Castañeda-Navarrete’s report on ‘The case for a gender-transformative digitalisation’. This policy brief offers practical recommendations for businesses, industry associations, and research and government organisations to promote gender diversity and inclusion within the UK manufacturing sector.

Categories
News

InterAct publishes Future of Digital Manufacturing Ecosystems ‘Scenarios 2040’ report

Disruption, digital innovation, new business models… the world of manufacturing is changing rapidly, perhaps faster than ever before. To adapt and survive, businesses must anticipate changes, identify opportunities and make informed decisions.

The InterAct Future of Digital Manufacturing Ecosystems team, one of InterAct’s core research streams, is committed to developing co-created solutions to the challenges facing the UK manufacturing sector in the near future. This team has now put together a vital report that brings you the information you need, at your fingertips, outlining potential future scenarios and the associated opportunities for the manufacturing world.

Discussing the importance of this new work, InterAct Co-director and Future of Digital Manufacturing Ecosystems lead, Professor Jan Godsell said: “The future can often seem distant and subordinate to the problems of today, particularly in the supply chain and manufacturing sectors when it has felt as though we are living in an age of ‘permacrisis’, constantly fighting just to stay on track.

However, if anything, the impacts of conflict, pandemic, supply chain disruption, climate change and labour market shifts have proven the vital importance of considering potential futures, today. That’s why my team has produced this new report, to be used in conjunction with upcoming workshops and case studies to create a framework for businesses to effectively plan for, and mitigate challenges whilst exploiting new technological opportunities.

We’re excited to be working with organisations like Midlands Engine and Make UK on this project, and I look forward to inviting new and existing members of the InterAct Network to join us in co-creating this work.”

The scenarios outlined in the report map out four potential alternatives for the digital manufacturers of tomorrow:

  • Productivity Powerhouse
  • Flexibility as Standard
  • Sustainability Champion
  • Happy and Sustainable Workforce

Download the report to find out more about how the most useful measure of sustainable progress is total factor productivity, which accounts for inputs beyond labour – such as materials, energy and administrative time – to compare them against total outputs.

Categories
News

InterAct hosts second Annual Conference

The IET Savoy Place, London hosted the InterAct Network’s second Annual Conference on 3rd October, 2023, bringing together a wide range of industry leaders, policy influencers, and academic experts. The central theme of the conference, “How do we create the digital manufacturing future we want?” provided a catalyst for discussions from 13 expert speakers who came together to deliver their unique insights on the challenges and opportunities for the future of manufacturing.

The conference began with an introduction from InterAct Co-director Professor Jillian MacBryde and ESRC Deputy Director of Impact and Innovation, Melanie Knetsch. Discussing the motivations and philosophy behind funding the InterAct Network, Melanie said: “What became apparent when we were first conceptualising the Made Smarter Challenge, was that this was more than just an R&D challenge. If you’re going to really understand manufacturing and support digital transformation you need to take a step back and understand the businesses, the structures, the people, the management, the training, and the skills involved within that.

“We needed to be able to bring people together who haven’t worked together before and adopt this multi-sector approach. That’s why it has been an absolute pleasure to watch it [InterAct] grow and develop over the last two years as a community has come together.”

The morning session then continued with talks from Peter Cheese, Chief Executive of the Chartered Institute of Personnel and Development (CIPD), who kicked off proceedings by offering insights into the future of work, emphasizing the pivotal role of human resources in shaping the workforce of tomorrow.

Ben Armstrong, Executive Director of MIT’s Industrial Performance Center, then delved into the benefits and potential pitfalls of automation, providing an international perspective on the opportunities that lie ahead.

The session then continued to explore InterAct’s core themes: the Future of the Economy, the Future of Work, and the Future of Digital Manufacturing Ecosystems. Expert speakers shared their own unique perspectives on the broader topics, providing the basis for the afternoon discussions. You can watch all the talks here.

Preceding the afternoon session, the final keynote speaker Ved Sen, Head of Business Innovation at Tata Consultancy Services (TCS), shared his views on the habits of innovative companies. Charting the different approaches some of the worlds biggest companies take to developing a culture of innovation that fosters ingenuity and market leading thinking.

In the interactive segment of the day, attendees had the opportunity to workshop questions amongst themselves to pose to a panel of experts. The panel, comprising thought leaders from diverse backgrounds, discussed critical themes and issues facing the manufacturing sector.

As the curtains closed on the second InterAct Annual Conference, Professor Janet Godsell expressed gratitude to the speakers, sponsors, and attendees for contributing to a vibrant and collaborative event atmosphere. She reiterated the Network’s commitment to building dialogue and connections, highlighting the proactive role InterAct is taking in bringing stakeholders together through events such as these.

Categories
InterAct Blog

Rethinking manufacturing: It is everything, everywhere, all at once

In a world where perceptions shape industries and policies, understanding the narrative surrounding manufacturing is crucial. InterAct has recently published a report which analyses the perceptions of manufacturing in the United Kingdom and compares it with six other countries.

The report “How to make manufacturing charming again? It is everything, everywhere, all at once”, authored by researchers from Aston University and the University of Cambridge, examines the factors that influence these perceptions and tracks how the UK public’s perception has evolved over time.

The aim of the report is to support InterAct research on the future of manufacturing by providing insights into attitudes to manufacturing and industrial strategies, and how manufacturing is discussed in other countries, particularly where digital technologies have been adopted.

Public perceptions of manufacturing across countries and over time

Although governments remain hesitant to explicitly champion “industrial policy”, the renewed commitment to manufacturing, as evidenced in the UK’s Advanced Manufacturing Plan, underscores its pivotal role in national economies which is increasingly acknowledged by policymakers.

The multi-country review, encompassing the UK, Canada, Germany, Singapore, South Korea, Switzerland, and the US, revealed more positive perceptions of manufacturing in Germany and the US compared to the UK. However, perceptions within the UK have shown improvement. In 2001, the British public believed that the country could thrive without manufacturing. In contrast, by 2023, 93% of the public believe that the manufacturing industry is essential to economic growth and resilience.

Across countries, including the UK, a consistent trend persists; younger people exhibit the least interest in pursuing careers in manufacturing. The prevailing perception, widely held among teenagers and young adults, is that the industry is predominantly male and lacking diversity compared to other sectors. Additionally, manufacturing is perceived as being poorly paid, repetitive, and not requiring high-skilled labour. These misconceptions pose significant challenges in attracting new talent to consider the manufacturing sector as a viable and rewarding career path.

Understanding the policy and perception nexus

Industrial and innovation policies play a significant role in shaping public perceptions, which can sometimes differ from reality. Terms like “advanced manufacturing” increasingly highlight the high-tech nature of the industry. National strategies also underscore manufacturing’s role in economic growth, innovation, and regional development.

Women tend to be underrepresented in manufacturing, especially in high-tech industries. For instance, in the UK, women account for 26% of the manufacturing workforce, and their representation is even lower in high-tech sectors such as automotive and aerospace. However, gender disparities within the sector remain largely unaddressed across policies, reflecting a notable blind spot.

Megatrends reshaping manufacturing

Megatrends reshaping manufacturing, such as environmental sustainability and digitalisation, persist as top priorities in industrial and innovation strategies. The interrelation of such megatrends is also becoming an area of interest in policy making. In addition, the impacts of the COVID-19 pandemic and geopolitical tensions have led to an increased emphasis on resilience, national security, value chain reconfiguration, and technological sovereignty.

These shifts in priorities and the continued focus on digitalisation and environmental sustainability have broadened the scope of activities and value chain segments within manufacturing. Notably, there is a growing emphasis on areas such as design and recycling, and the blurring boundaries between manufacturing and services.

Addressing challenges and charting a new path

This latest InterAct report highlights the evolving perception of manufacturing, emphasising the intrinsic link between policy and public perspectives. It highlights manufacturing’s multifaceted role in economic growth, innovation, and social inclusion, while also indicating pathways for improvement.

The report provides four recommendations in moving forward:

  1. Systematic collection of data (yearly or every 2 years) about how the public perceives manufacturing and the role of the digital and green transformations in shaping perceptions.
  2. Leveraging the manufacturing observatory, outlined in the UK Advanced Manufacturing Plan, to constantly monitor policy developments across different contexts. This includes how manufacturing and related terminologies are defined and portrayed.
  3. Setting measurable targets and initiatives aimed at enhancing diversity in manufacturing.
  4. Providing education and career information about manufacturing from the early stages.
Categories
Report Resources

Perceptions of Manufacturing: How to make manufacturing charming again?

Overview

Watch a short explainer video about the importance of sector perception to the future of manufacturing

This report presents insights into how manufacturing is perceived, the factors shaping this perception, and how this perception has evolved in the last decade. The findings draw upon a systematic review of academic, grey and policy literature across seven countries: the United Kingdom (the UK), Canada, Germany, Singapore, South Korea, Switzerland and the United States (the US).

The report is the main output of the InterAct-funded project “How to make manufacturing charming again? It is everything, everywhere, all at once”. The aim of the report is to support InterAct research on the future of manufacturing on an international scale by providing insights into attitudes to manufacturing and industrial strategies, and how manufacturing is discussed in other countries, particularly where digital technologies have been adopted.

This research was conducted by Dr. Guendalina Anzolin (IfM, University of Cambridge), Dr. Jennifer Castañeda–Navarrete (IfM, University of Cambridge) and Dr. Dalila Ribaudo (Aston University). This work was supported by the UKRI Made Smarter Innovation Challenge and the Economic and Social Research Council via InterAct [Grant Reference ES/W007231/1].

For further discussions or potential collaborations, please contact Jennifer Castañeda–Navarrete or Dalila Ribaudo.

Download “Report - UK and international perceptions of manufacturing”

Perceptions-of-Manufacturing.pdf – Downloaded 856 times – 1.17 MB
Watch project researchers Guendalina Anzolin and Jennifer Castañeda–Navarrete discuss their findings in this webinar hosted by IfM Cambridge
Categories
InterAct Blog

Charging ahead or falling behind? the UK’s preparedness for EU battery regulations

The European Union’s (EU) new battery regulations (Regulation 2023/1542 ), introduces many new legislative measures, including specific requirements for battery passports and smart labelling. It marks a significant shift towards enhancing sustainability and transparency within the battery value chain.

These battery regulations are pivotal in advancing the EU’s Circular Economy Action Plan. As the UK navigates its post-Brexit landscape, aligning with these regulations is crucial for maintaining trade relations and environmental standards. Recent InterAct funded research provides a comprehensive analysis of the UK’s readiness to adapt to these regulations, offering insights that highlight both opportunities and the challenges ahead.

New regulatory requirements

Under the new rules, there will be enhanced information and ICT system requirements for entities introducing batteries and battery powered products to the market. This applies to any economic operator involved in making batteries available in the EU, whether as separate components like cells, modules and packs, or as part of larger products. It also includes those who change a battery’s intended use or are involved in refurbishing or remanufacturing.

A key feature of the regulation is the mandatory inclusion of a QR Code on all batteries, facilitating the use of ‘smart label’ and ‘battery passport’ functionalities, varying by battery type. While specific operators are obligated to provide this information, in practice, a broader network of stakeholders will likely contribute, creating an integrated, multi-stakeholder ‘battery information ecosystem’. This ecosystem will span the entire value chain and lifecycle of battery products, supporting both passport and smart label functions with information from a diverse array of operators.

UK readiness

Recent research conducted by Loughborough University (supported by the  Made Smarter Innovation Challenge and funded via the Economic and Social Science Research Counil (ESRC) led InterAct Network) offers an extensive overview of the UK’s readiness for the impending regulations, specifically Battery Passports and Smart Labelling requirements.

The analysis includes results from a nationwide survey, completed by 80 organisations, including 21 large, 28 medium-sized, 23 small enterprises, and eight micro-businesses, also representing a wide spectrum of products and activities across the battery value chain/system.

The findings from the survey were discussed in a roundtable discussion and follow-up interviews, available here, which offer a multi-dimensional perspective on the readiness and concerns of the UK battery sector. This breadth of participation underscores the comprehensiveness of the findings, capturing a wide array of viewpoints and insights from a variety of actors along the value-chain from beginning of life to end of life.

Awareness and attitudes towards regulation

The survey revealed that 63% of organisations were unaware of the new regulations, with this figure rising to 73% among UK-based suppliers to the EU. This lack of awareness is concerning, as it indicates a potential gap in readiness for compliance.

The industrial context of these regulations is complex. While there is optimism about the potential for more sustainable and circular business practices, there are also concerns about the administrative, technical and financial burdens the Battery Passport and Smart Labelling requirement might impose. The majority view these requirements as a significant challenge, with only a minority seeing any substantial benefits.

Information readiness: a critical gap

A significant challenge identified in the survey is information readiness. Many businesses reported inadequate access to crucial data on battery materials and supply chain details. This includes information on recycled material content, hazardous substances and critical raw materials, as well as supply chain transparency for components like battery separators and cell casings.

Only about half of the respondents felt confident in the accuracy and completeness of their records, highlighting a pressing need for improved information sharing and data management systems.

ICT challenges and opportunities

The survey underscored the significant challenges in ICT, data, and workflow requirements for compliance. The responsibility for the Battery Passport primarily lies with the manufacturer, who is required to create and maintain these records for each battery throughout the battery’s lifecycle.

In some cases, other economic operators also have roles to play in maintaining or updating certain information, yet many organisations lack the necessary systems and expertise to collect, create, share and report the required data. However, this also presents an opportunity for innovation in the sector, with the potential for new technologies and systems to streamline these processes.

Implications for UK battery producers and UK policy

More needs to be done to raise awareness and demystify the compliance obligations of UK battery manufacturers and producers. It was felt that the new regulations would dominate the focus of day-to-day business activities for several years.

Other issues raised – such as fragmented industry practices, lack of clear guidelines, and the complexity of supply chains – would benefit from clear policy directions, enhanced data management systems, and increased international and value-chain collaboration, which were seen as critical to overcoming these challenges.

The regulation necessitates a collaborative effort from manufacturers, producers, importers, and distributors of all battery types and is essential for implementing substantial changes in areas such as labelling, end-of-life management, and supply chain due diligence. Additionally, there is a need for establishing incentives that will enable increased collaboration between beginning-of-life and end-of-life operators.

Categories
InterAct Blog

Manufacturing a better future – exploring disability inclusive digital manufacturing

In 2021 Make UK1 outlined the need for manufacturing to attract skilled workers from all sections of society acknowledging the continuing challenges of the lack of diversity in the workforce. However, the current focus in manufacturing policy and practice on equality and diversity has been limited to gender and ethnic diversity. Although almost a quarter (23%) of the UK working age population are disabled2, the industry has lacked a real interest in the inclusion of disabled people.

The employment gap between disabled and non-disabled people has also remained consistently high at around 30% for the past 10 years, with a pay gap of almost 20% lower for disabled workers compared with non-disabled workers3. Moreover, in the UK, 32% of disabled people do not have basic digital skills4 and those with multiple disabilities are the most digitally disadvantaged. They often face barriers in basic access to the technology such as connection to Wi-Fi-network or finding and opening applications on their devices.

This inaccessibility of technology, together with rapidly growing digital capabilities, is exacerbating the digital divide between disabled and non-disabled people. There is also a strong business case to include more disabled people into work for innovation through diverse workforce. We know that diversity and inclusion have positive effect on firms’ productivity, innovativeness or quality5, so why has this been largely ignored by manufacturers?

Recent research6,7 found that efforts to improve the suitability of industrial manufacturing workstations or the use of Industry 4.0 technologies for disabled people have still been superficial, favouring the inclusion of workers with milder disabilities and missing the complex interaction between the socio-technical aspects of inclusion. Our research explores how digital technologies, alongside an inclusive managerial mindset and accessible business practices, can create inclusive digitalisation in manufacturing.

Our project, ‘Manufacturing a Better Future – exploring disability inclusive digital manufacturing’, embodies the principles of socio-technical systems view where the benefits of the new technology are optimised alongside the humanisation of work, by looking into how the technological and social aspects interact and emerge together. This approach is closely in line with the social model of disability8. Based on this view, it is often the social barriers such as inaccessible physical environments, the attitudes (prejudice and discrimination) and the inflexibility of organisational procedures and practices that exclude disabled people from work, rather than medical conditions.

At the end of this project, we propose that we will have a greater understanding of how the digital inclusion divide, as well as the disability employment gap, can be narrowed through the inclusion of disabled people into the manufacturing ecosystem.


References
  1. Make UK (2021) UK manufacturing diversity & inclusion guide https://ktn-uk.org/wp-content/uploads/2021/11/KTN_Made-Smarter_UK-Manufacturing-Diversity-and-Inclusion-Guide.pdf?=MadeSmarterUK
  2. Scope (2022) https://www.scope.org.uk/media/disability-facts-figures/
  3. Together Trust (2023) https://www.togethertrust.org.uk/news/explaining-disability-employment-gap
  4. Lloyds (2021) Essential Digital Skills Report 2021, https://www.lloydsbank.com/assets/media/pdfs/banking_with_us/whats-happening/210923-lb-essential-digital-skills-2021-report.pdf
  5. Chaudhry, I. S., Paquibut, R. Y., & Tunio, M. N. (2021). Do workforce diversity, inclusion practices, & organizational characteristics contribute to organizational innovation? Evidence from the UAE. Cogent Business & Management, 8(1), 1947549.
  6. Teixeira, E. S., & Okimoto, M. L. L. (2018). Industrial Manufacturing Workstations Suitability for People with Disabilities: The Perception of Workers. In Advances in Ergonomics in Design: Proceedings of the AHFE 2017 International Conference on Ergonomics in Design, July 17− 21, 2017, The Westin Bonaventure Hotel, Los Angeles, California, USA 8 (pp. 488-497). Springer International Publishing.
  7. Mark, B. G., Hofmayer, S., Rauch, E., & Matt, D. T. (2019). Inclusion of workers with disabilities in production 4.0: Legal foundations in Europe and potentials through worker assistance systems. Sustainability, 11(21), 5978.
  8. Oliver, M. (2013). The social model of disability: Thirty years on. Disability & society, 28(7), 1024-1026.
Categories
Resources Tool Video

CarbonVue

Overview

CarbonVue is an innovative digital tool that enables businesses to increase efficiency whilst reducing costs and CO2 emissions from their supply chains. Using CarbonVue, companies can highlight key points in the configuration of their supply chains to target with improvements to help produce a greener tomorrow.

Categories
InterAct Blog

Building supply chain resilience means going beyond reshoring

Ask anyone involved in supply chain management or logistics about the last five years and most will agree they have been tough. Brexit, Covid and the war in Ukraine have caused uncertainty on both the demand and supply side.

Such geopolitical uncertainty raises complex questions for supply chain managers, such as whether supply chains could be better prepared for shocks.

Professor Jan Godsell is the Co-director of InterAct and Dean of Loughborough Business School and Professor of Operations and Supply Chain Strategy. After a career in manufacturing and supply chains, including spells at ICI and Dyson, she moved into academia covering all aspects of supply chains. According to Jan, a common cause of supply chain breakdown is just a lack of joined up thinking between marketing and supply chain strategy.

“It doesn’t matter whether you know why a demand pattern has been caused,” she explains. “If there’s a peak in demand, there’s a peak. The data should show that you get seasonal peaks, and you can react. We know we’re going to get shocks. We won’t know the cause, but we can have a degree of preparedness knowing there will be shocks at some stage.”

Dynamic versus structural flexibility

Dynamic flexibility is possible within the current network design, while the other, structural flexibility, demands a rewiring of relationships between suppliers.

She says the first type should be enough to cope with everyday swings in demand and supply. “If things stay within standard parameters, the network needs the right buffers to deal with that variability. It is a matter of analysing and assessing how unpredictable demand might be and using maths to work out required buffers and what inventory to keep.”

Jan says exceptional events in recent years have seen both sorts of flexibility at play.

“Brexit forced the UK to be fairly well buffered, so when Covid hit it meant we had a lot of inventory for the things we normally need. What also happened was unexpected demand for things we don’t normally require, such as Personal Protective Equipment (PPE) and ventilators.

“That required structural flexibility, creating new networks to produce things at a volume not seen before. With Covid-19, it wasn’t just the UK requiring flexibility, it was the world. We had to repurpose assets in the global network to provide them. And we did a decent job, globally.”

Jan adds that structural weaknesses highlighted by recent events have been partly created by decisions taken over many years, in particular making supply chain decisions based on short-term financials and procurement rather than long-term planning.

Finance runs the supply chain game

Holding buffers or inventory in a supply chain can be expensive, and it’s often not clear who should bear that cost. This, says Jan, is partly why supply chains have not been as resilient as they could be.

“We’ve had a financially orientated view of supply chains, focused on a return on capital employed (ROCE) that enables payback as quickly as possible. That means when building a factory, we don’t factor in spare capacity. And if spare capacity means inventory, we try to maximise return and minimise inventory.”

For Jan this goes back to how we value organisations, and the role finance plays in corporate strategy. And we haven’t learned much from earlier shocks.

She points out that financially driven supply chains had an impact in the recession of the late 2000s. A lot of firms had sent manufacturing and other parts of their supply chains offshore, often to low-cost environments. But they had forgotten to factor in the cost of logistics, which became a problem when the oil price peaked.

“Suddenly, the price of logistics was higher than the price of production. That reminded people to take a ‘total landed cost’ perspective [when deciding on location],” she explains. “People were lazily using manufacturing cost as a proxy for total landed cost. Worse still, they’d started to use labour cost as a proxy for manufacturing cost.”

While current trends such as “nearshoring” and “reshoring” are ways to de-risk supply chains, Jan suggests if cost must be the key factor in a decision, total landed cost is the metric to use. But when deciding where to place operations, she suggests not letting procurement be the drivers. Instead, she says, long-term planning and collaboration across the supply chain will be more effective at delivering efficient, resilient supply chains.

Let the SCOR guide you

Prof Godsell highlights the Supply Chain Council’s Supply Chain Operations Reference model (SCOR). SCOR consists of five core processes:

  • Planning
  • Procurement
  • Manufacturing
  • Logistics
  • The returns process

Planning is the primary element. Too many supply chains, says Jan, focus on a lowest-cost approach with procurement as the primary driver.

She describes this as “lowest cost, at all cost” and says it results in all parties doing things for themselves cheaply as possible, minimising buffers, passing risk to others and leaving the whole chain more vulnerable.

“Planning should be the integrative glue that holds it together,” she says. “It should be the function that connects a supply chain. We see lots of exploitative procurement practices, expecting year-on-year cost downs, because procurement managers have been incentivized on margin.”

End-to-end supply chains?

Jan’s ideal is to build what she calls “end-to-end supply chain optimisation” between retailers, manufacturers and suppliers. This creates flow and aims to manage the supply chain in a fairer way for everyone.

Buffers must be in the right place at the right amount. And there’s a collective responsibility for holding them and we don’t do things like promotions that mess up flow. The cheapest supply chain is one with steady demand, because it means minimal buffers, because you’ve got predictability.

And such end-to-end supply chains are likely to be less carbon intensive. “There is an inextricable link between productivity, sustainability and resilience,” says Jan. “The same principles underpin all three. If we could manage an end-to-end supply chain, so that we have flow and minimised buffers, within the current network configuration, it is likely to have the lowest carbon footprint, because you’ve got nothing in it you don’t need.”

Digitalisation is key

Like much else in modern organisations, supply chain optimisation requires technology. “We can’t do this without digitalisation,” says Jan, adding this is nothing new for manufacturing. “When I worked at ICI, we had electronic process control, it was just hard wired. Now the internet provides connectivity that spans the supply chain.”

Digitalisation enables us to understand demand and supply more accurately and we have the analytics platforms and the computing power to do the analysis we need in minutes.


This article was published by Lombard, read the original version here.

Categories
Link Publication Report Resources Tool

From supply chains towards manufacturing ecosystems: A system dynamics model

Overview

Rapid market changes call for demand-driven collaborations in manufacturing, which trigger supply chain evolution to more distributed supply structures.

This paper explores the system dynamics of the largest European aerospace manufacturer’s supply chain. The authors conceptualise a manufacturing ecosystem by observing the impacts of supplier development, digital platforms, smart contracting, and Industry 4.0 on demand-driven collaborations in time.

The research team offers further contributions to the literature on ecosystem strategy, particularly for regulated industries, by disclosing the role of demand-driven collaborations in supporting the ecosystems’ growth. This paper also provides manufacturing firms with an open-access tool to exemplify their ecosystem development and produce initial training datasets for AI/ML algorithms, supporting further analytics.

This research was conducted by Dr. Nikolai Kazantsev (IfM, University of Cambridge), Oleksii Petrovskyi (National University of Kyiv-Mohyla Academy), Professor Julian M. Müller (Seeburg Castle University, Austria and Erfurt University of Applied Sciences, Germany). This work was supported by the UKRI Made Smarter Innovation Challenge and the Economic and Social Research Council via InterAct [Grant Reference ES/W007231/1].

For further discussions or potential applications/collaborations, please contact Nikolai Kazantsev.

https://doi.org/10.1016/j.techfore.2023.122917