Global value chains are comprised of all the activities a firm must go through in order to bring a product to market. This globalization of the supply chain provides opportunities for more companies around the world to be in involved in the design, production, marketing, logistics and distribution of products for customers. However, while a shift towards globalization provides an opportunity for competitive competition, it could only benefit countries and regions with less sound economic statuses.
What Global Value Chains Mean For Small Businesses
So, should small and medium-sized manufacturers in the United States – who are most likely to operate within their own geographic region – feel threatened by global value chains? It depends on a few factors, including the type of product the company sells, the manufacturing processes necessary to create the product, and the firm’s relationship with other, larger manufacturers and members of the value chain who already operate globally.
As stated previously in the postings about Big Data and ERP, as technology within manufacturing increases, and the demand on cross-domain skills becomes more pertinent, it is increasingly important for all manufacturers, including small and medium-sized, to evolve, stay current and fight obsolescence.
Why Business Process Reviews Are Important
In our work here at Ultra, we’ve discovered many small companies don’t take the time to conduct business process reviews on an ongoing basis, and only reach out when there’s a big problem. This is just like someone who is experiencing pain, but puts off going to the doctor. One day, that pain will begin to affect their daily life to a point where they finally decide to go to seek medical help. Upon examination, the doctor tells the patient the pain can eventually be fixed, but it would have been much easier if they had gone for a check-up initially and began the solution earlier.
Business process reviews are key for a company to understand how they are operating and how to maximize productivity to remain competitive in the regional and global landscape. Many smaller manufacturers are family-owned, second or third generation companies that have great skills and do what they do extremely well, but aren’t sure how to adapt the company so it can compete in the future, especially against global threats.
Resources For Improving Your Global Status
There are associations, like the Association of Equipment Manufacturers (AEM), whose vision is to enable equipment manufacturers to be successful in the global marketplace. They aim to think and act globally, serve all companies both large and small, educate, and assist members in emerging markets.
With the development of new technologies, the advent of the Cloud, the shifting of skill sets and the threats of international competition, it is important for companies, especially small manufacturers, to understand what they can do to stay relevant in the evolving landscape.
Our Series on the 10 Drivers of the Future of Manufacturing
In the World Economic Forum’s white paper, “Manufacturing Our Future, Cases on the Future of Manufacturing,” the Global Agenda Council on the subject determined that manufacturing has become so complex that to ensure its development, the private sector, public sector and civil society may often converge.
They determined what must be done within ten different drivers of the future of manufacturing, including ones specific to capabilities and those specific to policies and trends.
Global value chains is the sixth entry in our series covering the ten drivers, our fourth provides an overview on their recommendations concerning Additive Manufacturing.