Top 25 Risk Factors for Manufacturing Supply Chains

According to a recent report from BDO USA, an accounting and consulting organization, manufacturers’ intellectual property, supply chain data and products have become prime targets for cyber criminals.

The 2016 BDO Manufacturing RiskFactor Report examines the risk factors in the most recent 10-K filings of the largest 100 publicly traded U.S. manufacturers across five sectors including fabricated metal, food processing, machinery, plastics and rubber, and transportation equipment.

The factors were analyzed and ranked by order of frequency cited.

Manufacturing Industry Serves Up New Risks

The manufacturing industry is getting mixed reviews.

The Institute for Supply Management (ISM) Index reported that activity was up in April after five straight months of declines.

Then, in late May, the Purchasing Manager’s Index reported the first reduction in output since September 2009.

In the trenches, manufacturers say domestic demand has been solid, while global business has been more challenging. And the end customer matters: in a recent earnings call, Caterpillar’s CEO noted, “Just about any market that’s away from oil is doing pretty good.”

“Pretty good” is a modest but realistic goal for manufacturers this year, and their top concerns echo this cautious optimism. The annual analysis of the most frequently cited risk factors found the supply chain remains at the top of the list – cited by 100 percent of manufacturers we analyzed – while emerging and growing risks in cybersecurity, competition, labor, pricing, regulations and international operations are also keeping manufacturers up at night.

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How Does Big Data Analytics Help in Decision Making

Staying ahead in the game is paramount for any business organization to survive in this competitive world. The future poses challenges that need tackling in the present. Every decision made today has a significant impact on the future of that organization. The rate at which a company responds to challenges in the present and the future is what determines their rate of success. Data Science and Big Data analytics can help organizations in decision making and drive the company to a realistic future.

The Deciding Factor

It is paramount for businesses to understand the big data concept and how it impacts the organization activities. Discussed below are ways in which Big Data facilitates faster and better decision making;

Accelerating Time-to-Answer

The time cycle for decision making is decreasing rapidly. Companies have to make decisions more quickly in this period than in the past. Accelerating decision-making time is crucial for the success of any organization. The use of Big Data doesn’t change the urgency of decision making. Big Data analytics mitigates.

Customer reaction to a product is an important factor to consider when making a decision. Using data resources to understand the preferences of customers is one way of pointing out gaps existing in the market. However, the problem is how do you integrate and act in real time? The key is to know how to combine Big Data with your traditional Business Intelligence to create a more convenient data ecosystem that allows for the generation of new insights while executing your present plans.

Accelerating your time-to-answer is crucial for customer satisfaction. For example, if your answer time is usually in minutes, Big Data can reduce it to seconds. If it takes weeks for a client to have their problem tackled, then reducing it to days is more convenient for your customers. Customer retention is critical to the success of your organization.

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