Manufacturing technology

Introduction

This report combines all the briefs from the stock tracking theme for Quarter 3, 2006. The briefs include the market focus which discusses the drivers and issues within the manufacturing industry and the strategy focus, looking at how manufacturing companies are planning to deal with the market pressures.

Scope

• Covers issues being faced by manufacturers with regard to their warehousing and inventory management such as supply chain complexity.
• Discusses strategies being implemented by manufacturers to alleviate warehousing and inventory management problems such as cross docking.
• Sizes the market opportunity for RFID technology in the UK, US, Nordics, Germany and Japan.

Highlights

A manufacturer's ability to produce is fundamentally dependent on its factories and warehouses. Without adequate space, companies cannot produce the desired amount of goods to satisfy their customers' demands. Therefore, as manufacturers try to grow their operations, a greater demand for production and warehousing space is created.

Reasons to Purchase

• Understand the key dynamics within the manufacturing industry as warehousing and stock management become more important.
• Look at how manufacturers are hoping to implement business strategies to ensure costs are minimized and value maximized.
• Assess the market opportunity for RFID technology across a range of verticals for five key countries.

• Catalyst
• Summary
• Methodology
• Executive Summary
  • Introduction
  • Keeping track in manufacturing (Market Focus)
  • Manufacturing inventory strategies (Strategy Focus)
  • UK, US, Nordic, German and Japanese RFID investment outlook for all verticals (Databooks)
• Keeping Track In Manufacturing (Market Focus)
  • Summary
  • Constraints are restricting the ability of companies to expand production and are increasing the underlying costs
  • Energy prices are skyrocketing
  • Other costs can also affect the capacity of existing and new production and warehousing facilities
  • Supply chain complexity is increasing as manufacturers outsource production and increase configurability
  • Traditional manufacturing is changing as companies transform into assembly shops and focus on configuration
  • Speedy production is being hindered by poor stock and materials management
  • Poor warehouse and factory management is negatively impacting labor efficiency
  • Customers are demanding better service, improved cycle lengths and more information
  • Overall quality of service is still an issue for manufacturers
  • Poor service can lose customers
  • The cost of re-shipping can be significant
  • Dealing with customer returns still plagues some manufacturers
  • Customers want more from less time
  • Shorter delivery times are in demand
  • Customers want to be able to change configurations right up until delivery
  • Manufacturers are seeing demand for more detailed stock management information
• Manufacturing Inventory Strategies (Strategy Focus)
  • Summary
  • Outsourcing warehouse processes can reduce cost and improve quality of service
  • Shared space - pay for what you use - allows greater scalability
  • Increased visibility can be a benefit of warehouse outsourcing
  • Warehousing providers are able to provide a higher level of service
  • Task interleaving lets manufacturers reduce travel time and associated costs
  • Task interleaving combines multiple function lists
  • The benefits of interleaving are significant
  • Interleaving can help cut costs and improve flow-through
  • Manufacturers can focus on different processes using priority based interleaving
  • Cross docking seeks to reduce inventory holding and picking costs
  • Cross docking effectively removes the need for inventory storage and picking
  • There are multiple challenges associated with cross docking
  • Through cross docking manufacturers can drastically reduce costs and improve cycle times
  • Technology is helping manufacturers support warehouse and stock-related strategies
  • A range of options are available to manufacturers looking to streamline warehouse and stock processes
  • Vendor activity in the warehousing area has been mixed
• Uk Rfid Investment Outlook For All Verticals (Databook)
  • Introduction
  • Definitions
  • Total UK RFID investment 2004-2011 ($m)
  • UK individual discrete manufacturing industry expenditure on RFID 2004-2011 ($m)
  • UK individual batch manufacturing industry expenditure on RFID 2004-2011 ($m)
  • UK individual process manufacturing industry expenditure on RFID 2004-2011 ($m)
  • UK retail expenditure on RFID 2004-2011 ($m)
  • UK logistics expenditure on RFID 2004-2011 ($m)
  • UK individual public sector expenditure on RFID 2004-2011 ($m)
  • Other UK expenditure on RFID 2004-2011 ($m)
  • UK expenditure on RFID hardware, software and services 2004-2011 ($m)
  • UK expenditure on RFID hardware 2004-2011 ($m)
• Us Rfid Investment Outlook For All Verticals (Databook)
  • Introduction
  • Definitions
  • Total US RFID investment 2004-2011 ($m)
  • US individual discrete manufacturing industry expenditure on RFID 2004-2011 ($m)
  • US individual batch manufacturing industry expenditure on RFID 2004-2011 ($m)
  • US individual process manufacturing industry expenditure on RFID 2004-2011 ($m)
  • US retail expenditure on RFID 2004-2011 ($m)
  • US logistics expenditure on RFID 2004-2011 ($m)
  • US individual public sector expenditure on RFID 2004-2011 ($m)
  • Other US expenditure on RFID 2004-2011 ($m)
  • US expenditure on RFID hardware, software and services 2004-2011 ($m)
  • US expenditure on RFID hardware 2004-2011 ($m)
• Nordic Rfid Investment Outlook For All Verticals (Databook)
  • Introduction
  • Definitions
  • Total Nordic RFID investment 2004-2011 ($m)
  • Nordic individual discrete manufacturing industry expenditure on RFID 2004-11 ($m)
  • Nordic individual batch manufacturing industry expenditure on RFID 2004-2011 ($m)
  • Nordic individual process manufacturing industry expenditure on RFID 2004-11 ($m)
  • Nordic retail expenditure on RFID 2004-2011 ($m)
  • Nordic logistics expenditure on RFID 2004-2011 ($m)
  • Nordic individual public sector expenditure on RFID 2004-2011 ($m)
  • Other Nordic expenditure on RFID 2004-2011 ($m)
  • Nordic expenditure on RFID hardware, software and services 2004-2011 ($m)
  • Nordic expenditure on RFID hardware 2004-2011 ($m)
• German Rfid Investment Outlook For All Verticals(Databook)
  • Introduction
  • Definitions
  • Total German RFID investment 2004-2011 ($m)
  • German individual discrete manufacturing industry expenditure on RFID 2004-11 ($m)
  • German individual batch manufacturing industry expenditure on RFID 2004-2011 ($m)
  • German individual process manufacturing industry expenditure on RFID 2004-11 ($m)
  • German retail expenditure on RFID 2004-2011 ($m)
  • German logistics expenditure on RFID 2004-2011 ($m)
  • German individual public sector expenditure on RFID 2004-2011 ($m)
  • Other German expenditure on RFID 2004-2011 ($m)
  • German expenditure on RFID hardware, software and services 2004-2011 ($m)
  • German expenditure on RFID hardware 2004-2011 ($m)
• Japanese Rfid Investment Outlook For All Verticals (Databook)
  • Introduction
  • Definitions
  • Total Japanese RFID investment 2004-2011 ($m)
  • Japanese individual discrete manufacturing industry expenditure on RFID 04-11 ($m)
  • Japanese individual batch manufacturing industry expenditure on RFID 2004-11 ($m)
  • Japanese individual process manufacturing industry expenditure on RFID 04-11 ($m)
  • Japanese retail expenditure on RFID 2004-2011 ($m)
  • Japanese logistics expenditure on RFID 2004-2011 ($m)
  • Japanese individual public sector expenditure on RFID 2004-2011 ($m)
  • Other Japanese expenditure on RFID 2004-2011 ($m)
  • Japanese expenditure on RFID hardware, software and services 2004-2011 ($m)
  • Japanese expenditure on RFID hardware 2004-2011 ($m)
• Appendix
  • Definitions
  • Extended Methodology
• Further reading
  • Ask the analyst
• List of Tables
  • Table 1: RFID definitions
  • Table 2: Total UK RFID investment 2004-2011 ($m)
  • Table 3: Individual discrete manufacturing industry expenditure on RFID 2004-2011 ($m)
  • Table 4: UK individual batch manufacturing industry expenditure on RFID 2004-2011 ($m)
  • Table 5: UK individual process manufacturing industry expenditure on RFID 2004-2011 ($m)
  • Table 6: UK retail expenditure on RFID 2004-2011 ($m)
  • Table 7: UK logistics expenditure on RFID 2004-2011 ($m)
  • Table 8: UK individual public sector expenditure on RFID 2004-2011 ($m)
  • Table 9: Other UK expenditure on RFID 2004-2011 ($m)
  • Table 10: UK expenditure on RFID hardware, software and services 2004-2011 ($m)
  • Table 11: UK expenditure on RFID hardware 2004-2011 ($m)
  • Table 12: RFID definitions
  • Table 13: Total US RFID investment 2004-2011 ($m)
  • Table 14: US individual discrete manufacturing industry expenditure on RFID 2004-2011 ($m)
  • Table 15: US individual batch manufacturing industry expenditure on RFID 2004-2011 ($m)
  • Table 16: US individual process manufacturing industry expenditure on RFID 2004-2011 ($m)
  • Table 17: US retail expenditure on RFID 2004-2011 ($m)
  • Table 18: US logistics expenditure on RFID 2004-2011 ($m)
  • Table 19: US individual public sector expenditure on RFID 2004-2011 ($m)
  • Table 20: Other US expenditure on RFID 2004-2011 ($m)
  • Table 21: US expenditure on RFID hardware, software and services 2004-2011 ($m)
  • Table 22: US expenditure on RFID hardware 2004-2011 ($m)
  • Table 23: RFID definitions
  • Table 24: Total Nordic RFID investment 2004-2011 ($m)
  • Table 25: Nordic individual discrete manufacturing industry expenditure on RFID 2004-11 ($m)
  • Table 26: Nordic individual batch manufacturing industry expenditure on RFID 2004-2011 ($m)
  • Table 27: Nordic individual process manufacturing industry expenditure on RFID 2004-2011 ($m)
  • Table 28: Nordic retail expenditure on RFID 2004-2011 ($m)
  • Table 29: Nordic logistics expenditure on RFID 2004-2011 ($m)
  • Table 30: Nordic individual public sector expenditure on RFID 2004-2011 ($m)
  • Table 31: Other Nordic expenditure on RFID 2004-2011 ($m)
  • Table 32: Nordic expenditure on RFID hardware, software and services 2004-2011 ($m)
  • Table 33: Nordic expenditure on RFID hardware 2004-2011 ($m)
  • Table 34: RFID definitions
  • Table 35: Total German RFID investment 2004-2011 ($m)
  • Table 36: German individual discrete manufacturing industry expenditure on RFID 2004-11 ($m)
  • Table 37: German individual batch manufacturing industry expenditure on RFID 2004-2011 ($m)
  • Table 38: German individual process manufacturing industry expenditure on RFID 2004-11 ($m)
  • Table 39: German retail expenditure on RFID 2004-2011 ($m)
  • Table 40: German logistics expenditure on RFID 2004-2011 ($m)
  • Table 41: German individual public sector expenditure on RFID 2004-2011 ($m)
  • Table 42: Other German expenditure on RFID 2004-2011 ($m)
  • Table 43: German expenditure on RFID hardware, software and services 2004-2011 ($m)
  • Table 44: German expenditure on RFID hardware 2004-2011 ($m)
  • Table 45: RFID definitions
  • Table 46: Total Japanese RFID investment 2004-2011 ($m)
  • Table 47: Japanese individual discrete manufacturing industry expenditure on RFID 04-11 ($m)
  • Table 48: Japanese individual batch manufacturing industry expenditure on RFID 2004-11 ($m)
  • Table 49: Japanese individual process manufacturing industry expenditure on RFID 04-11 ($m)
  • Table 50: Japanese retail expenditure on RFID 2004-2011 ($m)
  • Table 51: Japanese logistics expenditure on RFID 2004-2011 ($m)
  • Table 52: Japanese individual public sector expenditure on RFID 2004-2011 ($m)
  • Table 53: Other Japanese expenditure on RFID 2004-2011 ($m)
  • Table 54: Japanese expenditure on RFID hardware, software and services 2004-2011 ($m)
  • Table 55: Japanese expenditure on RFID hardware 2004-2011 ($m)
• List of Figures
  • Figure 1: Global energy prices are increasing significantly
  • Figure 2: An increased energy cost base for warehouses and factories is hurting manufacturers
  • Figure 3: Manufacturers are facing many points of pain within production
  • Figure 4: Task interleaving can significantly reduce travel time
  • Figure 5: Task interleaving integrates several 'to-do' lists (simplified)
  • Figure 6: Distribution cross docking relies upon a sorting area to redistribute shipments
  • Figure 7: Cross docking processes focus on reducing put-away and picking
  • Figure 8: Total UK RFID investment 2004-2011 ($m)
  • Figure 9: UK individual discrete manufacturing industry expenditure on RFID 2004-2011 ($m)
  • Figure 10: UK individual batch manufacturing industry expenditure on RFID 2004-2011 ($m)
  • Figure 11: UK individual process manufacturing industry expenditure on RFID 2004-2011 ($m)
  • Figure 12: UK retail expenditure on RFID 2004-2011 ($m)
  • Figure 13: UK logistics expenditure on RFID 2004-2011 ($m)
  • Figure 14: UK individual public sector expenditure on RFID 2004-2011 ($m)
  • Figure 15: Other UK expenditure on RFID 2004-2011 ($m)
  • Figure 16: UK expenditure on RFID hardware, software and services 2004-2011 ($m)
  • Figure 17: UK expenditure on RFID hardware 2004-2011 ($m)
  • Figure 18: Total US RFID investment 2004-2011 ($m)
  • Figure 19: US individual discrete manufacturing industry expenditure on RFID 2004-2011 ($m)
  • Figure 20: US individual batch manufacturing industry expenditure on RFID 2004-2011 ($m)
  • Figure 21: US individual process manufacturing industry expenditure on RFID 2004-2011 ($m)
  • Figure 22: US retail expenditure on RFID 2004-2011 ($m)
  • Figure 23: US logistics expenditure on RFID 2004-2011 ($m)
  • Figure 24: US individual public sector expenditure on RFID 2004-2011 ($m)
  • Figure 25: Other US expenditure on RFID 2004-2011 ($m)
  • Figure 26: US expenditure on RFID hardware, software and services 2004-2011 ($m)
  • Figure 27: US expenditure on RFID hardware 2004-2011 ($m)
  • Figure 28: Total Nordic RFID investment 2004-2011 ($m)
  • Figure 29: Nordic individual discrete manufacturing industry expenditure on RFID 2004-11 ($m)
  • Figure 30: Nordic individual batch manufacturing industry expenditure on RFID 2004-2011 ($m)
  • Figure 31: Nordic individual process manufacturing industry expenditure on RFID 2004-2011 ($m)
  • Figure 32: Nordic retail expenditure on RFID 2004-2011 ($m)
  • Figure 33: Nordic logistics expenditure on RFID 2004-2011 ($m)
  • Figure 34: Nordic individual public sector expenditure on RFID 2004-2011 ($m)
  • Figure 35: Other Nordic expenditure on RFID 2004-2011 ($m)
  • Figure 36: Nordic expenditure on RFID hardware, software and services 2004-2011 ($m)
  • Figure 37: Nordic expenditure on RFID hardware 2004-2011 ($m)
  • Figure 38: Total German RFID investment 2004-2011 ($m)
  • Figure 39: German individual discrete manufacturing industry expenditure on RFID 2004-11 ($m)
  • Figure 40: German individual batch manufacturing industry expenditure on RFID 2004-2011 ($m)
  • Figure 41: German individual process manufacturing industry expenditure on RFID 2004-11 ($m)
  • Figure 42: German retail expenditure on RFID 2004-2011 ($m)
  • Figure 43: German logistics expenditure on RFID 2004-2011 ($m)
  • Figure 44: German individual public sector expenditure on RFID 2004-2011 ($m)
  • Figure 45: Other German expenditure on RFID 2004-2011 ($m)
  • Figure 46: German expenditure on RFID hardware, software and services 2004-2011 ($m)
  • Figure 47: German expenditure on RFID hardware 2004-2011 ($m)
  • Figure 48: Total Japanese RFID investment 2004-2011 ($m)
  • Figure 49: Japanese individual discrete manufacturing industry expenditure on RFID 04-11 ($m)
  • Figure 50: Japanese individual batch manufacturing industry expenditure on RFID 2004-11 ($m)
  • Figure 51: Japanese individual process manufacturing industry expenditure on RFID 04-11 ($m)
  • Figure 52: Japanese retail expenditure on RFID 2004-2011 ($m)
  • Figure 53: Japanese logistics expenditure on RFID 2004-2011 ($m)
  • Figure 54: Japanese individual public sector expenditure on RFID 2004-2011 ($m)
  • Figure 55: Other Japanese expenditure on RFID 2004-2011 ($m)
  • Figure 56: Japanese expenditure on RFID hardware, software and services 2004-2011 ($m)
  • Figure 57: Japanese expenditure on RFID hardware 2004-2011 ($m)