17 CONTRACT MANUFACTURING: THE VALUE OF A NETWORK BASED APPROACH | 2024
17
Network Provider Views
In the study, 33% of respondents were contract manufacturers/ suppliers. Contract manufacturers are more aligned within their organization than their brand owners. Brand owners may also operate as contract manufacturers. In the study, 37% of brand owners also provided contract manufacturing services. The most important flow for a contract manufacturer is manufacturing schedule change information. The second
most important are forecasts, and the third most important is purchase orders. The most accurate information currently is quality control status and shipping information. Not only is there an accuracy issue, but also one of data latency. Manufacturing schedule changes happen frequently, often many times a day, but have a black hole due to the use of spreadsheets and email of 1.5 days.
Figure 11. Accuracy and Importance of Data Signals at a Contract Packer
ACCURACY
Quality Control Status
4.08
42%
33%
17%
8%
Shipment Information Manufacturing Schedule Changes Materials on Hand
4.00
25%
67%
8%
4.00
50%
25%
8%
8%
8%
3.92
25%
50%
17%
8%
Purchase Orders
3.92
33%
33%
25%
8%
Yield
3.75
25%
42%
17%
17%
Available Capacity Perpetual Inventory Signals
3.75
42%
25%
8%
17%
8%
3.00
8%
25%
17%
42%
8%
Forecast
2.83
33%
33%
17%
17%
IMPORTANCE
Manufacturing Schedule Changes Forecast
4.75
83%
8%
8%
4.67
75%
17%
8%
Purchase Orders
4.67
75%
17%
8%
Materials on Hand
4.58
67%
25%
8%
Shipment Information
4.50
67%
17%
17%
Available Capacity
4.50
58%
33%
8%
Yield Perpetual Inventory Signals Quality Control Status
4.42
67%
17%
8%
8%
4.36
58%
8%
25%
8%
4.17
58%
25%
8%
8%
Source: Supply Chain Insights 2024 Q48. Accuracy: How would you rate the accuracy of the information shared? Q49. Importance: How would you rate the importance of the information shared with your organization?
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