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Over the last 40 years I have seen significant change in how manufacturing businesses compete. We have moved through the quality revolution which brought new expectations around quality and cost, to the lean revolution and associated methodologies delivering better service, value and reduced costs. Businesses then shifted their focusses onto supply chain optimisation, bringing end-to-end thinking. Their approaches moved from comparing their business models with their competitors’, to comparing their supply chains. Top performing supply chains became enabled by ERPs, and are now enabled by value networks, no longer in point-to-point structures but integrated webs of suppliers and partners delivering products and services seamlessly through a multitude of channels. Of course, the rapidly increasing deployment of AI further fuels optimisation and connectedness in these supply chains. At the root of this change in manufacturing are constantly moving market-led goalposts for how businesses better deliver what the end customer wants, when they want it, at the lowest cost possible. Understanding this value equation and then aligning their service delivery model to meet and exceed this expectation better than competition is what separates the wheat from the chaff, and industry leaders are doing this at the most competitive cost to maximise their margins. Very few, if any, businesses can do all of this by themselves. Generally, larger businesses with more scale, buying power, and connections have more capability than SMEs. However, interconnected SMEs can create highly efficient clusters which can compete with anyone and be highly agile and scalable. As we know NZ has a high proportion of SMEs and this presents both an opportunity and a risk. The opportunity is that we can create high-value clusters and that can be highly agile, integrated and capable of delivering high-value products and services through multiple channels to customers around the world. We certainly […]