{"id":9946,"date":"2022-01-04T10:35:41","date_gmt":"2022-01-04T18:35:41","guid":{"rendered":"https:\/\/www.qad.com\/blog\/?p=9946"},"modified":"2022-01-04T13:14:38","modified_gmt":"2022-01-04T21:14:38","slug":"2021-manufacturing-a-year-in-review","status":"publish","type":"post","link":"https:\/\/www.qad.com\/blog\/2022\/01\/2021-manufacturing-a-year-in-review","title":{"rendered":"2021: Manufacturing, a Year in Review"},"content":{"rendered":"<p>[vc_row][vc_column][vc_single_image image=&#8221;9949&#8243; img_size=&#8221;full&#8221;][vc_column_text]<span style=\"font-weight: 400;\">The Oxford Languages and Merriam-Webster dictionary folks have advanced \u201cVax\/vaccine\u201d as 2021\u2019s word of the year, but we think it really should be \u201cdisruption.\u201d We\u2019re tired of hearing about it in our business planning, and we\u2019re tired of living with it on the shop floor.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Supply chains are more fragile than ever, shipping and trucking backlogs have hit multiple industries endangering holiday celebrations and causing general shortages, and the lack of certain products (read: <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/blog\/2021\/06\/how-the-semiconductor-shortage-could-have-been-averted\" rel=\"noopener\"><span style=\"font-weight: 400;\">semiconductor chips<\/span><\/a><span style=\"font-weight: 400;\">) are crippling industries. A talent and labor shortage continues, and remote work schemes will probably remain the norm well into 2022.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">2021: A Year of Continued Disruption\u2026for All Industries<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">QAD CMO Carter Lloyds described shipping delays, energy issues\/sustainability challenges and the Carbon Bubble as three major<\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/blog\/2021\/11\/3-industry-disruptors-affecting-manufacturers-today\" rel=\"noopener\"> <span style=\"font-weight: 400;\">industry disruptors affecting manufacturers<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With<\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/blog\/2021\/12\/supply-chain-disruption-what-will-happen-with-the-holidays\" rel=\"noopener\"> <span style=\"font-weight: 400;\">supply chain disruptions around the holidays<\/span><\/a><span style=\"font-weight: 400;\">, we saw how existing vulnerabilities in the global supply chain were exacerbated by the COVID-19 pandemic and its cascading effects:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Lack of visibility into actual consumer demand<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Fragile planning and production processes<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Lack of real-time communication between the manufacturing enterprise suppliers, third-party logistics providers and consumers<\/span><\/li>\n<\/ul>\n<h3><span style=\"font-weight: 400;\">Medical and Pharmaceutical Technology<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Several industries stood out with solutions to disruptions. In the<\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/blog\/2021\/11\/navigating-disruption-in-medtech\" rel=\"noopener\"> <span style=\"font-weight: 400;\">medical technology area<\/span><\/a><span style=\"font-weight: 400;\">, we saw forward-looking manufacturers seeking to improve collaboration with supply chain partners, building in risk mitigation planning and management, increasing safety stock to avoid raw material shortages, and automating business processes with enterprise and operational software applications.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Packaging and Consumer Packaged Goods<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">In the<\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/blog\/2021\/09\/disruption-is-nothing-new-for-packaging-manufacturers\" rel=\"noopener\"> <span style=\"font-weight: 400;\">packaging industry<\/span><\/a><span style=\"font-weight: 400;\"> and in the <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/blog\/2020\/08\/supply-chain-network-design\" rel=\"noopener\"><span style=\"font-weight: 400;\">consumer packaged goods (CPG) industry<\/span><\/a><span style=\"font-weight: 400;\">, it may sound trite, but the only constant truly is change. The industry is accustomed to the rapidly multiplying number of new SKUs, calls for<\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/blog\/2021\/08\/erp-aids-your-sustainability-initiatives\" rel=\"noopener\"> <span style=\"font-weight: 400;\">sustainability<\/span><\/a><span style=\"font-weight: 400;\">, customer demands that change on a dime, and issues in storage and transportation. Like other industries, packagers and CPG manufacturers that seek to improve collaboration between planning and operations can respond with more agility to upcoming disruptions.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Automotive<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">In his<\/span><a target=\"_blank\" href=\"https:\/\/podcasts.qad.com\/public\/72\/The-Dirty-Words-Podcast-627e7efb\/5e0b7800\" rel=\"noopener\"> <span style=\"font-weight: 400;\">Dirty Words Podcast<\/span><\/a><span style=\"font-weight: 400;\">, QAD Vice President, Automotive and Mobility Sector Tom Roberts talked about disruption in the automotive industry with a focus on two issues:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The move from manufacturing internal combustion engine (ICE) vehicles to <\/span><span style=\"font-weight: 400;\">autonomous, connected, electric, and shared (ACES) vehicles<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">How the industry will face the post-COVID world<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Tom also wrote about automaker job shifts with the move to electric vehicle production, <\/span><span style=\"font-weight: 400;\">\u201c<\/span><a target=\"_blank\" href=\"https:\/\/www.embeddedcomputing.com\/application\/automotive\/electric-vehicles-powertrain\/an-honest-conversation-about-jobs-and-chips\" rel=\"noopener\"><span style=\"font-weight: 400;\">An Honest Conversation, About Jobs and Chips<\/span><\/a><span style=\"font-weight: 400;\">\u201d in <\/span><i><span style=\"font-weight: 400;\">Embedded Computing Design<\/span><\/i><span style=\"font-weight: 400;\"> magazine. More disruption.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Food and Beverage<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">QAD Director for Consumer Products and Food &amp; Beverage Vertical Markets Stephen Dombroski talked with <\/span><span style=\"font-weight: 400;\">Lara Sowinski, Executive Editor, and co-founder of <\/span><i><span style=\"font-weight: 400;\">VinRoutes.com<\/span><\/i><span style=\"font-weight: 400;\">,<\/span><span style=\"font-weight: 400;\"> about<\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/blog\/2021\/10\/wine-ing-about-todays-fb-challenges-and-opportunities\" rel=\"noopener\"> <span style=\"font-weight: 400;\">disruptions in the winemaking industry<\/span><\/a><span style=\"font-weight: 400;\">. She identified many, including:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Closures of in-person dining, bars, travel, business and entertainment events<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Spikes in online ordering and direct-to-consumer sales affecting the supply chain<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Changes in wine consumption affecting all areas of production and the supply chain including transportation, warehousing, distribution and packaging<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">International and domestic shipping disruptions<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Overall worker shortages, including agricultural workers, drivers, warehouse workers, etc.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Rise in ocean freight rates<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Raw materials shortages, for example, of aluminum and wooden pallets<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Wildfires in growing regions, climate change, sustainability issues<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">You name the disruption, the winemaking industry faced it, in spades.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Manufacturing Challenges and Best Practices<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">On the heels of our first Tomorrow broadcast event in late 2020, QAD hosted two more Tomorrow events in 2021 to break down the challenges and hone in on best practices across key capability areas in manufacturing.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In May, we focused on overcoming supply chain disruptions and improving supply chains and supplier relationships. With industry experts, we explored:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Challenges in strategic sourcing, managing supplier relationships and navigating disruptions in complex, global supply chains.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Best practices for overcoming supply chain challenges in the areas of supply chain planning, transportation management, quality, sourcing and supplier management.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">We shared our <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/integrated-supplier-management-diagnostic\" rel=\"noopener\"><span style=\"font-weight: 400;\">Integrated Supplier Management Diagnostic<\/span><\/a><span style=\"font-weight: 400;\"> tool designed to help manufacturers measure the current state of their supplier relationships and identify ways to optimize supply chains.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In December, we explored the innovative digital solutions manufacturers are adopting to improve operational performance, specifically:<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Digitizing quality and industry compliance<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Digitizing the shop floor<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Automating material transfer<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Building a digital foundation<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">We shared our <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/digital-manufacturing-diagnostic\" rel=\"noopener\"><span style=\"font-weight: 400;\">Digital Manufacturing Diagnostic<\/span><\/a><span style=\"font-weight: 400;\"> tool designed to help manufacturers measure the current state of their digital transformation efforts and identify strengths and weaknesses as well as changes that can be made now and over time.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Will Disruption Continue into 2022?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The short answer is, Yes. The magnitude and severity of future disruptions will obviously vary by a number of factors including industry, geographic location, etc. And many of last year\u2019s disruptions were caused by unforeseen change, or forces outside of our control.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It\u2019s important not to assume that major changes <\/span><i><span style=\"font-weight: 400;\">must<\/span><\/i><span style=\"font-weight: 400;\"> be made immediately to try and tackle future disruption. Instead, start by looking at the big picture before attempting to identify and solve problems. Build a framework for the integration of better data, better decision making and better insights. This could mean changing your business model significantly, or entirely. Remember, micro-improvements from the bottom up will drive micro-efficiencies. It\u2019s just a matter of time before you get to where you want to be.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Which were your biggest disruptions in 2021?<\/span>[\/vc_column_text][\/vc_column][\/vc_row]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[vc_row][vc_column][vc_single_image image=&#8221;9949&#8243; img_size=&#8221;full&#8221;][vc_column_text]The Oxford Languages and Merriam-Webster dictionary folks have advanced \u201cVax\/vaccine\u201d as 2021\u2019s word of the year, but we think it really should be \u201cdisruption.\u201d We\u2019re tired of hearing about it in our business planning, and we\u2019re tired of living with it on the shop floor. Supply chains are more fragile than ever, shipping [&hellip;]<\/p>\n","protected":false},"author":23,"featured_media":9949,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[182,199],"tags":[1947,1462,6,601,697,1056,1950,1949,24,1952,1951,92,1948],"class_list":["post-9946","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-manufacturing-trends","tag-2021-recap","tag-adaptive-manufacturing","tag-automation","tag-digitization","tag-disruption","tag-industry-change","tag-lack-of-real-time-communication","tag-lack-of-visibility","tag-manufacturing","tag-manufacturing-best-practices","tag-manufacturing-challenges","tag-supply-chain","tag-year-in-review"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>2021: Manufacturing, a Year in Review | QAD Blog<\/title>\n<meta name=\"description\" content=\"Ongoing disruption was the theme of 2021. 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