United States

Manufacturing Advisors

ARTICLE

Our capabilities go beyond superb assurance and tax services to include an unparalleled array of specialized manufacturing consulting services. We would welcome the opportunity to talk to you today about how we’ve helped manufacturing clients like you improve their performance, comply effectively and efficiently, and find the growth they need now more than ever.

"How can my technology platform support product innovation, drive customer relationships and increased revenue, and improve my relationships with suppliers?"

"Are my internal controls – especially those over web security – working as intended? How can I be sure that my controls are keeping pace with our growth and key changes?"

"How can improved visibility and understanding of product and customer-level profit contribution drive results in my business?"

"How can my technology platform support product innovation, drive customer relationships and increased revenue, and improve my relationships with suppliers?"

Support product innovation, improve operations and reduce costs
Converging requirements for product design, production and supply chain efficiency are driving the need for integrated product lifecycle management. Customers are looking for products to be introduced more quickly to market. Manufacturers are oftentimes looking for suppliers to be fully integrated into the product development process and don't have the technology platform to facilitate this level of collaboration. RSM can help direct manufacturers select and deploy technology solutions that:

  • Speed delivery of new products by implementing a fully integrated product lifecycle management system integrated with your ERP solution
  • Provide complete transparency from request to sourcing, forecasting, design, production, and delivery
  • Facilitate global collaboration to quickly engineer, procure and manufacture new products through connected demand-driven supplier networks

Develop more profitable customer relationships
Business to business customers have many more options to source parts and products on a global basis and are looking for manufacturers to help them be successful in delivering the quality and service they are expecting. When a manufacturer can deliver on these promises, the customer is more willing to pay for excellence and often becomes a loyal, profitable customer. We have delivered technology projects that:

  • Directly connect customer demand requirements for products to manufacturing, suppliers, and distribution
  • React more quickly to changing customer demands with efficient and integrated product change processes
  • Provide powerful post-sales support technology, including mobility solutions for rapid response and tracking

Build deeper relationships with suppliers and vendors
Legacy ERP systems often do not support new business practices (e.g., lean manufacturing, collaborative product development, and supply chain planning). This makes it difficult to provide differentiated business processes that often form the basis for small and midsized companies' competitive strategy.

These systems were often designed around vertical organizational silos rather than around the horizontal business processes that reflect the way work really gets done. Manufacturers across all industry segments struggle to integrate disparate product development, manufacturing, procurement, sales, and customer systems, which impedes their ability to capture a unified view of company and supply chain performance.

You need to build more collaborative and profitable relationships with vendors and suppliers through a demand-driven supplier network that delivers end-to-end and real-time visibility into key information, such as sourcing, demand forecasts, design changes, and production costs. Your ability to shorten product development life cycles by integrating product development with manufacturing, finance, purchasing, and your suppliers is key to delivering your products faster and cheaper.

RSM has deep manufacturing knowledge and can help you develop a strategy for your organization to leverage the appropriate technologies to help you collaborate with customers and suppliers more effectively.

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"Are my internal controls – especially those over web security – working as intended? How can I be sure that my controls are keeping pace with our growth and key changes?"

The advent of "professional" hackers has increased the sophistication of attacks on organizations' internet-facing systems. Accordingly, organizations are requesting service solutions to detect and prevent vulnerabilities that may be compromised by hacker communities. Organizations are progressively seeking recommendations to fix application layer vulnerabilities. The solution set RSM offers through our risk advisory and technology services groups to address these requests include web application assessments, web application firewall advisory services and education on secure coding technique.

If your company has not re-evaluated you internal control framework and key controls since the release of AS5 you are likely spending more time on SOX compliance than required. With the release of this new audit standard, companies have been able to reduce the number of key controls required to be tested in order to comply with Sarbanes-Oxley, thus reducing the cost of compliance. With the reduction in compliance costs, most companies have redirected their efforts to addressing higher risk items identified through their enterprise risk management (ERM) process. If your company has not embarked on implementing an ERM program, it is something you should strongly consider and it is not as cost prohibitive as most companies originally anticipate. In fact, RSM has developed a methodology allowing us to maximize the time spent identifying key risks so management can spend more time evaluating how they are addressing them.

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"How can improved visibility and understanding of product and customer-level profit contribution drive results in my business?"

Understanding direct material and labor costs required to produce and deliver specific products is critical intelligence for assessing pricing and effectively managing margins. But that is just the beginning. Do you thoroughly understand how particular products and customer requirements consume your labor capacity, both direct and indirect? To what extent do stock-level, delivery, customer service and warranty requirements impact how many resources are consumed and related indirect overhead costs, incurred at a specific product category or SKU-level? How do variations in specific customer volume and service requirements impact profitability when viewed holistically? Are your pricing strategies built on a thorough understanding of total costs at a product and customer-level?

Many manufacturers and distributors see a significant opportunity for increasing profitability by breaking down what truly drives costs and margins at a more granular level. Understanding the real drivers of how your resources (e.g. people, equipment, and other assets) are consumed based on requirements and operating practices at a product and customer-level is significant in enabling management to increase margins. RSM's proven costing, costing standards, and activity-based costing methods applied in a reasonable manner can enable you to understand whether costs are being managed effectively, pricing adjustments should be considered, or selected products or customer service requirements should be retired or overhauled. At RSM®, we begin by performing a Rapid Assessment® or diagnosis to quickly evaluate how effectively you are measuring total costs at a product and/or service level, your organization's analytic competencies, and how well you are utilizing existing costing system capabilities. If you perceive gaps in these capabilities and competencies, consider how a Rapid Assessment® could help you drive significant margin improvement.

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Contact our team

Steve Menaker 
National Industrial Products Practice Leader

800.274.3978


Related

Case Studies

Events/Webcasts

Perspective
News, trends, and insights for manufacturing and distribution executives.


Events/Webcasts

LIVE WEBCAST

Manufacturing issues and insights webcast series

  • January 19, 2017

IN-PERSON EVENT

Critical business issues to consider for 2017

  • December 07, 2016

RECORDED WEBCAST

Are you using your ERP system to its full potential?

  • June 17, 2015