It’s Time for Manufacturing to Thrive, not Just Survive in 2025
Every yearly cycle brings an opportunity to reflect and plan at the same time and nothing captures our imagination more than what we could set out to achieve. For many, the start of a new year is a reset moment, whether that be on a personal level or considering business goals and objectives. In manufacturing, the management of supply chains can be a particularly complex challenge and a major distraction from achieving the goals you have set, but unleash their potential and your supply chain can directly enhance your manufacturing efficiency.
The global manufacturing market seems to shift and change like a living creature. On one hand, the world feels like an ever decreasing space, enabling access to high quality, cost effective manufacturing from all corners of the globe with advances in AI and communications technology eliminating cultural, language and geographic barriers. Yet, at times, the turbulence of geopolitical events, natural disasters and economic instability can make the global manufacturing market a challenge to navigate.
We all operate in a complex world of swirling pressures and demands to compete and forever achieve more. It is our programmed instinct to evolve and grow and achieve success. In business, this instinct is channelled towards being the best, beating our competition, growing faster, being bigger and more successful. In manufacturing this leads to focusing on efficiency, productivity and profitability to secure shareholder interest and future investment to support innovation.
So, as the new year arrives and the new cycle begins, is your focus on these key criteria held strong? Well, it should be! Reality hits hard though, and for those that have enjoyed a rest during the Christmas holiday and extended into celebrating the new year, the first day back to work can arrive all too suddenly and with an all too familiar daily workload of problem solving, fire fighting and ‘noise’ that keeps us away from our dreams, visions and ambitions.
First and foremost, the task is to keep focus and avoid distraction. At a business level in manufacturing, this means placing your core strengths at the heart of everything. This is what makes you successful, so you have to protect them at all costs, securing freedom for them to function effectively. The flip side of this is to avoid expending resources on things that are not core strengths. This is costly, inefficient and dangerously distracting, but it happens easily as we are all prone to reacting to problems and can fall into the trap of spending too much of our time trying to fix them.
If, as is quite possibly the case, you’re reading this already some weeks or even months into 2025, you may have already fallen victim to this, preventing you from making positive progress towards achieving your goals. Well, it’s not too late! Industry is a continuously moving machine. Yes, it is measured by annual performance cycles, but the journey stretches beyond a financial year so it is never a bad time to consider change.
Making Your Supply Chain Work for You
Procurement, Purchasing and Supply Chain Management are critical functions of any manufacturing business. Let’s face it, you can’t make anything without the materials you need to build your product and often the quality and cost effective supply of components directly influences your competitive edge.
Having options to source from high quality manufacturing businesses is key to ensuring innovative design developments become reality. Having control over the management of these supply chains is critical to ensuring that your products are brought to market faster and more effectively than your competition.
The more complex your products are, the more components you need and, quite probably, the more suppliers you have to manage. Innovation in design requires focused specialisms in component manufacture that are rarely supported by a “one size fits all” manufacturer. Turning, extruding, pressing, plating….and more, these are specialist operations that require specific investment in particular machinery and expertise. It is easy to imagine how complex the task of supply chain management can become.
There are multiple ways to simplify this aspect of your business. Categorising components allows you to consider managing them differently. Standard fasteners, for example, should never be a drain on your time. Yet, all too often, the simplest components can cause the biggest and most damaging issues, usually because they have been under-estimated or neglected. Low unit cost, low priority? Well, low unit cost can be financial disaster if you don’t have that one component you need to finish assembling your product.
Unusual or custom engineered components are also a potentially disproportionate distraction. Where to source them? How to verify form, fit, function and quality? How to secure timely supply? Innovation is one of the highest priorities for a manufacturing business to stay ahead of competition and keep customers engaged. Sourcing has to support this but it can be very time consuming.
Managing inventory is a secondary but no less important factor in managing your supply chain. The burden on cashflow can be catastrophic if allowed to go unchecked. Too much inventory, the wrong inventory, even not enough inventory. It all impacts on your business performance and stops you from achieving your goals.
Simplifying Supply with Vendor-Managed Inventory (VMI)
You get the gist – managing a complex supply chain is no small feat. Especially in a global marketplace characterised by volatility and an ever-growing demand for efficiency.
If any of this sounds familiar, you are probably also familiar with Vendor Managed Inventory, maybe even using it. A trusted partner that manages all of this for you, sourcing product, managing stock and taking control of multiple suppliers leaving you with just one interface to deal with.
Good VMI lives and breathes your business. It should be dynamic and intuitive, because that’s how manufacturing operates. Yes, repetition is a good thing – once a great product has been found and a production method established, repeating the process is the utopia of mass production, serving a large addressable market and leading to rapid growth. But, markets change, they move up and down and needs aren’t constant, so they require innovative solutions. A VMI system that doesn’t move with you can very quickly become the opposite of what it was intended to be. Read more about this in our other blog: The State of C-Parts Procurement and Supply Chain Management.
That’s why, at TFC, their systems are not simply inanimate racks, bins and labels. Yes they do of course position physical assets in your facility to manage component supply and inventory, but it is made dynamic by their people (and quite a bit of data collection and analysis!). It is the care and attention of TFC’s people that makes the difference and brings VMI to life.
What does “Great VMI” look like on a day to day basis?
TFC prides itself on being global but local. Historically a UK business born into the world of fasteners supply, TFC has grown to be a major provider of component supply, specialist sourcing and inventory management with branches throughout the UK and Europe. Through this network of facilities, the people of TFC (the magical VMI ingredient!) are positioned close to customers, working on site every day to support the needs and demands of manufacturing.
This is the face of TFC, the interaction that you, the customer experience first hand and the source of not only removing distraction but adding value from your supply chain. Observing, monitoring, questioning, challenging and constantly working on your behalf to make sure your component supply base is ready to support your needs.
Since becoming part of AFC Industries, a USA based global power in the field of VMI and supply chain management, this approach to serving customers has been reinforced and expanded. AFC Industries is one of the biggest providers of Vendor Managed Inventory solutions worldwide with over 100 locations in more than 7 countries and revenues exceeding $650 million annually. With that scale comes an extensive and global network of partnerships with manufacturing companies, meaning TFC can source virtually anything on your behalf, achieving high quality standards and competitive costs.
Accessing that level of global capability can deliver a great service to your business but it is not just about scale. The local attentiveness that comes from regionally positioned warehouses and branch teams, means that there is a lot of emphasis on listening and learning and this is key to making VMI work for you.
VMI Racks and Bins – can they Listen and Learn?
In some ways, actually yes, they do! Not in the literal sense of course, but in the way they capture data about usage and handling, they are passively listening to your changing needs. If connected to a strong, reliable ERP system, the barcode technology not only enables direct data transfer to kick off the replenishment cycle, but it also stores a record of usage, allowing for a precise illustration of peaks and troughs in your production schedule. Add to that real human interface and intelligent interpretation of data over time, and you get an intuitive system that can adapt to your requirements.
It takes constant effort coupled with care and a relentless interest in creating value and that’s the TFC difference. Strong, robust, proven systems and technology carefully managed by people who care about your business and creating value from your supply chain.
5 Key Benefits of TFC’s VMI
So, to summarise, if you’re already using VMI and wondering how to get more from it or are exploring whether VMI could be right for your business, here are 5 key benefits of TFC’s VMI solutions…
- Efficiency Gain
TFC’s VMI system reduces administrative overheads by eliminating the need for frequent purchase orders and supplier interaction. This streamlined approach minimises errors, shortens lead times, and allows teams to focus on strategic initiatives rather than firefighting. - Enhanced Visibility and Control
By providing real-time insights into inventory levels and usage trends, TFC empowers manufacturers to make informed decisions. This transparency reduces uncertainty and enhances planning accuracy, which is especially critical in today’s fast-paced manufacturing environment. - Cost Reduction
Effective inventory management directly impacts the bottom line. TFC’s VMI solutions optimise stock levels, reducing carrying costs and freeing up capital that would otherwise be tied up in excess inventory. Furthermore, the reduction in stockouts minimises costly production disruptions. - Scalability and Flexibility
As businesses grow and product lines expand, managing inventory across multiple sites and suppliers becomes increasingly complex. TFC’s scalable VMI systems adapt to evolving needs, providing manufacturers with the flexibility to innovate without being constrained by supply chain limitations. - Fostering Innovation
By outsourcing inventory management to a reliable partner, manufacturers can dedicate more resources to research, development, and production innovation. This shift not only enhances competitive advantage but also ensures a faster time-to-market for new products.
TFC’s reputation for delivering excellence in VMI is built on its commitment to understanding the unique challenges of its customers. By working closely with manufacturers, TFC develops bespoke solutions tailored to specific needs, ensuring that every component is delivered reliably and on time. This personalised approach positions TFC as more than a supplier; it makes them a strategic partner in achieving business objectives.