September 2021
www.nzmanufacturer.co.nz
8 MANUFACTURING TECHNOLOGY Gyro Plastics and Industry 4.0
12
ANALYSIS Pursuing sustainable business growth
14 PRODUCTIVITY The way forward.
Reimagining manufacturing in New Zealand: turning adversity into opportunity
Manufacturers around the world have been following a just in time principle for their operations. Simply speaking, just in time is an inventory management method in which goods are received only as they are needed. This method gained significant traction during Global Financial Crisis (GFC). Out of necessity, businesses learned how to run on a much leaner inventory as budgets were tightened and expenses cut.
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As the world grappled with supply chain disruptions and delays as a result of Covid-19 lockdowns and restrictions, manufacturers found themselves dealing with long delays and shortages of critical goods and products. Peter Jones, Managing Director and Founder at Prological says this revealed a vulnerability in just in time principles, which has presented an opportunity to re-imagine manufacturing in New Zealand.
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Peter Jones.
Europe and the US – many manufacturers in New Zealand were faced with long delays and significant shortages of critical goods. As the global aviation industry reached a near standstill, there was no air freight capacity into the country. With 60 to 65 per cent of air cargo usually carried on passenger aircraft – the price of air freight started to rise exponentially.
After the GFC, many organisations throughout the world continued to follow the principles of just in time – largely because it worked.
At the same time, the global shipping industry was also facing significant delays alongside freight costs growing exponentially.
However, just in time only works on the assumption that everything is working perfectly all the time. As soon as Covid-19 started to rip through China,
These delays and disruptions not only impacted manufacturers in New Zealand, but also retailers – as
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