The Engineering and Manufacturing sector has been rocked by rising volatility. The price of commodities from iron ore to agricultural products has risen drastically. As a result businesses manufacturing the machinery for the sector have seen a fall in profits.
The sector is particularly exposed to the effects of nature, geopolitical disruption, local protectionism to all-out war. Ukraine and Yemen are both examples of how areas of conflict can have a drastic effect on the supply chain.
If an Airplane had to be unexpectedly grounded, the wait for spare parts can cost its operator more than $100,000 per hour. A commercial airliner or mining machine can operate for 20 to 40 years which is why they need the right parts, in the right place,at the right time to keep their expensive assets running.
As trade and environmental regulations develop are constantly changing companies are having to do more to comply with industry standards and changing customer expectations.
By businesses improving the supply chain systems is a priority with a focus on improved forecasting , extensive contingency planning and the use of risk intelligence tools.