How to tame volatile manufacturing supply chains with automated processes

by | Apr 9, 2025 | Data Management, Inventory Management, Order Fulfillment, Order Management

Global supply chains seem to be in a constant state of flux. For manufacturers challenged to keep production lines running with consistent product quality and tight control of costs, this volatility is a serious concern.

Whether it’s fluctuating raw material costs, unexpected disruptions or changing consumer demands, unpredictability can significantly impact efficiency and profitability. To navigate these challenges, manufacturers must find ways to reduce costs and improve resilience.

One effective strategy: modernize operations with technology solutions to enable better visibility, automate processes and improve operational agility. Read on for suggested solutions for manufacturers to tackle supply chain volatility.

Minimize the impact of fluctuating raw material costs

Raw materials costs can be affected by environmental factors, regulatory demands and potential or escalating tariffs. Key strategies to offset rising costs include:

Improve planning accuracy

Effective demand planning is crucial for anticipating changes in raw material costs and avoiding stockouts or overstocks. By accurately forecasting demand, manufacturers can make informed decisions about production schedules, procurement and inventory management. To improve accuracy, manufacturers can look to tools such as predictive analytics and machine learning to analyze historical data, market trends and other relevant factors. Being proactive enables you to adjust procurement strategies, negotiate better contracts with suppliers and optimize production schedules based on anticipated demand.

Enhance inventory visibility

Another critical strategy for managing supply chain volatility is real-time inventory tracking. RFID tags, IoT sensors and cloud-based inventory management systems provide real-time data on inventory status. Enhanced inventory visibility can give insights into stock levels, production rates and supply chain movements, enabling more timely adjustments of inventory levels to reduce the risk of stockouts or excess inventory.

Reduce errors, streamline collaboration with EDI

To take full advantage of modern technology, savvy manufacturers integrate their operations technology with solutions enabling real-time data exchange and automation.

Fewer errors

Electronic Data Interchange (EDI) automates the exchange of business documents with trading partners, such as purchase orders, shipping notices and invoices. By replacing manual data entry with automated processes, EDI not only standardizes processes but also minimizes the risk of human errors.

Speedier processing

In addition to reducing errors, EDI speeds up order processing. Automated data exchange enables faster order creation, approval and fulfillment, which in turn encourages shorter lead times, improved customer satisfaction and increased order accuracy.

Better collaboration

The automated exchange of information possible through EDI enhances communication and coordination between manufacturers and suppliers. This closer collaboration also allows better alignment on production schedules, inventory levels and delivery timelines, and ultimately helps manufacturers build stronger trading partner relationships.

Maintain an agile supply chain

Operational agility is the ability to quickly and efficiently respond to market changes and disruptions.

In a volatile market, agility is essential to staying competitive and meeting customer demands. But manual processes are often slow, error-prone and inflexible, making it difficult to adapt to changing conditions.

Automating data exchange not only improves operational agility, but also enables manufacturers to:

  • Quickly process and analyze large volumes of data, providing real-time insights and enabling rapid decision-making.
  • Streamline workflows to respond more quickly to changes in demand, reducing the risk of stockouts or excess inventory.

Build a more stable path to success

While supply chain volatility may be inevitable, manufacturers who embrace technology and automation will be better equipped to navigate supply chain volatility, reduce costs and achieve long-term success.

SPS Commerce is ready to be your partner in building a stronger, more adaptable supply chain. Our experts bring the people, processes and technology to streamline operations, future-proof your supply chain and maximize your success.

Jenya Lawson
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