The challenges of the sector

Profitability difficult to maintain
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significant investments in the means of production that must be made profitable by controlling a balance between volume and margin.
• Upstream: less stress on raw materials .
• Downstream: constant price pressure and rising demand for quality.
New players come to the scene
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• The new powers (China, India, Brazil, Russia) are pulling demand as they stagnate in Europe and the United States with the economic crisis.
Complex products to be transported (heavy and/or bulky) and increasingly high transportation costs are pushing production closer to the markets.
A demand more and more complex to apprehend
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Customer needs requiring increased customization and reduced time-to-market.
A shortening of product life cycles , with market prices that are hard to target.
• An attrition rate that makes it difficult to anticipate long-term changes .
Environmental issues
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• The environmental impact is increasingly taken into account in customer expectations (resource consumption, pollutant emissions, soil rehabilitation).
• The economic equation becomes more complex with the emergence of coercive measures (standard, carbon tax…).
• The impact in terms of image for consumers tends to have real consequences on the turnover.

Your problems and our solutions

    • Manage the optimal balance between productivity, service rate and stock ownership.
    • Identify decoupling points to speed up flows and reduce work in progress.
    • Rethinking innovation and development processes by making them as agile as possible.
    • Consider maintenance as a contributor to the flow by prioritizing interventions on critical equipment.
    • Switch from the only reactivity (curative) to a proactive organization (increase to 80% preventive).
    • Exploit technologies (MES, big data …) to design predictive maintenance.
    • Define a real multi-criteria strategy for storing spare parts (impact and frequency breakage, supply delays, price, number of suppliers, etc.).
    • Develop a reliable and sustainable relationship with a worldwide network of suppliers.
    • Establish sourcing scenarios that can be activated according to the hazards (delay or quality, urgent need …)
    • Solve the equation between stockpile ownership, speculation and risk mitigation.
    • Measure and control all environmental impacts: resource consumption, polluting emissions and waste, land use …
    • Extend these considerations to the entire supply chain, from suppliers to consumers.
    • Develop specific tools: environmental result account, dedicated control loops (measure – decide – act).

Some references of the sector




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Nicolas Henry

Industry Expert

Nicolas conducted many projects in various sectors: design of industrial and logistics master plans, definition and implementation of industrial progress plans. He notably worked on industrial processes reworking for Vallourec, Erasteel, Aubert & Duval and Ugitech.