Covid-19 is a rapidly contagious disease that has brought a series of uncertainties not only to healthcare, but to the entire production chain. At this moment, it is necessary to rethink processes and strategies, and many leaders are wondering how to reduce the impacts of the crisis on their businesses.
In this post, we will discuss actions that can help in reducing the impacts of external events on the production chain. This context encompasses not only the current situation, but various factors such as natural disasters and economic crises.
Small businesses tend to suffer more from these events. This is what we are currently seeing, as highlighted by research from Sebrae. The reduction of the Gross Domestic Product (GDP) is also certain, according to economic studies. The Focus Market Report points to a drop of nearly 2% in 2020.
However, with technological advancement and predictive analytics, industry can adapt in advance to the current scenario and future situations. Doing so depends on investment in automation and cutting-edge technology. Companies already aligned with the future and the concept of Industry 4.0 will have an easier time reducing impacts.
How does technology act in the production chain?
The use of management solutions and technologies that emphasize automation will facilitate the readjustment of the production chain. One industrial example lies in production scheduling. Systems like DELMIA Ortems allow a company to plan a year’s worth of production in just 30 minutes. This speed is essential for making adjustments in situations involving external impacts.
Only in this way can a company minimize impacts by reorganizing production, inventory, supplier purchasing, and deliveries. The entire chain is interconnected, and a failure to adjust a single item will ultimately impact all connected businesses.
In Brazil, the companies Meritor and Cummins bet on shop floor technology, using Dassault systems marketed by Teclógica, which facilitate production readjustment. It is worth noting that this type of technology, represented here by the Ortems and Apriso solutions (for production planning and management), will be fundamental for the production chain to minimize the impacts of the crisis.
In addition to optimizing processes and reducing costs, companies have data at hand to implement continuous improvements. Thus, even when they need to adjust quickly due to external impacts, they do not suffer losses from the delays common in companies with analog processes.
Business resumption in focus
In any situation of external impact on the production chain, no matter how severe, there is always a recovery. Whether in the short, medium, or long term, it is essential that companies prepare and remain competitive when the economy begins to recover.
In this scenario, it is worth mentioning disruptive events. Planning can be altered quickly through a system to adapt the industrial production chain, which is a highly effective solution in these moments. It is also important to research projections made for Brazilian industries.
Your strategic planning needs to be aligned with this scenario. Once again, overcoming external impacts must be related to your company’s adaptability.
We detail tips on strategic planning for the production chain here, but it is worth reinforcing:
- Investments in technology for recovery will be essential,
- Studies and public-private partnerships will ensure business continuity,
- Automation will support cost reduction and ease of adaptation during the recovery.
To learn more about technology as a driver of economic recovery and how to adjust your business to this moment, get in touch with our specialists.
Authored by:
Aloisio Arbegaus — Sales Director at Teclógica
