According to the latest figures published by the Pakistan Bureau of Statistics (PBS) the large-scale manufacturing index (LSMI) shrank by 3.28 per cent in the first month of the current fiscal year.
Industries that saw the highest levels of decline include Food & Beverages, Textile, Pharmaceutical, Chemical, Fertilisers, Leather, Iron and Steel.
According to leading analysts factors that contributed to this reduction in output came in the form of inflationary pressures and the high costs (increased interest rates) associated with available capital in the Pakistani market today.
It would come as no surprise then that in times like these Large Scale manufacturing looks towards the creation of OPEX efficiencies as opposed to investing in CAPEX. Whilst this may seem a sound idea at first given where analysts are predicting interest rates and inflation to go it would be more astute to invest in and optimise internal operations. Manufacturers need to look for areas where they can become more efficient and drive operational efficiencies whilst keeping their customers happy.
Whilst there may be many areas within your organisation that my benefit from an injection of cash in our opinion when thinking about Supply Chain optimisation one of the first places to look for Large Manufacturers would be to invest in an enterprise grade fleet management system.
With a key focus on increasing kilometres travelled per litre, optimised vehicle fill rates and efficiencies around optimum route length a good fleet management platforms can make a positive difference to your supply chain operational costs.
Further economies of scale can also be realised through cargo and trailer safety features thereby reducing ever increasing cargo insurance costs. Moreover, best in class fleet management solutions are open in terms of integrations enabling manufacturers to integrate fuel sensors in their vehicles to not only monitor fuel usage but also eliminate fuel theft.
All in all given the unpredictable economic conditions for manufacturing businesses in Pakistan today one of the avenues to ride out this storm is look for value internally and rely on automation (fleet management) to do more with less.