As the coronavirus ends its first half-year, there are two certain outcomes which will affect the manufacturing industry worldwide. First is a global recession which will take at least two or three quarters, if not longer, to recover from. The second is that order demands for apparel will be substantially reduced as buyers shut down stores to minimize costs, thereby further limiting sales and any possible profits.
Given these two certainties, manufacturers must accept that not only will order sizes shrink, unit prices might also decrease, and profits can only be made if manufacturing costs can be reduced. Therefore, manufacturers need to find the best ways to deal with these unprecedented losses. They will have to minimize their manufacturing costs while simultaneously maintaining their customer base as well as their profits, and then, even more challenging, restoring business growth. This can be done but will require manufacturers to work more strategically than ever before.
A new foundation must be laid for a more innovative manufacturing platform and restructuring of all systems in order for any further business growth to occur. Dagher is a proven expert in strategic restructuring. Dagher systematic approach will restore the client’s ability to maintain the delicate balancing act between manufacturing costs and buyers’ orders and demands while ensuring that bottom line profitability gains are met. The proposed package is designed to help factories rebound and overcome the challenges brought on by the coronavirus pandemic. After implementing the program as a pilot, the factory will then be in a better position to replicate the process factory-wide with their available resources as the organization becomes both resilient and profitable. Optionally, Dagher can also assist the factory in the design of a rollout plan and provide coaching throughout the overall implementation.
