NewStream Blog

As a result of all the unpredictable market shifts and the fluctuating demand and supply, many businesses, especially retail businesses and original equipment manufacturers (OEM) have sought new ways to optimize their operations, increase production efficiency, lower costs, and eliminate material waste. Outsourcing order fulfillment services through a 3PL is one of the most popular and efficient solutions. Companies can focus more on their business operations and sales growth by employing a 3PL provider to prepare and ship products to customers. Most retailers and OEMs outsource kitting and/or assembly. They are two distinct services that, in most cases, work together in the order fulfillment process.

While warehouses and distribution centers may appear similar from the outside, and the terms are frequently used interchangeably when discussing logistics and supply chain management, they operate very differently on the inside. Each is intended to handle distinct objectives, tasks, and responsibilities. It is critical to understand the differences between warehouses and distribution centers to select the best logistics and supply chain solution for your company's needs and achieve your inventory turnover goals. 

E-commerce, also known as online retail, has changed the way consumers shop. Despite accounting for just over 13% of global retail sales, e-commerce generated an estimate of $215 billion in the United States. Retail has seen substantial changes because of technological advancements, which have had an impact on e-commerce. As businesses have attempted to accommodate unpredictable fluctuations in supply and demand, such changes have come with the complexity of inventory management connected with e-commerce. Many online retailers have adopted Just-In-Time delivery to optimize inventory management and ensure customer satisfaction.

The modern assembly line is an intricate commercial production arrangement in which both personnel and equipment are leveraged to systematically assembly products station by station. Each station adds to the work from previous stations until the product is finished.

Assembly line methods were first created to increase factory productivity and efficiency by lowering the cost and time it takes to make a finished product. Current advancements in assembly-line technologies set out to achieve those same original goals: to increase throughput (the number of goods produced in a given period of time) and to reduce costs. There are four assembly line methods that have been used in the production process. Additionally, various costs in the manufacturing process are associated with each method.

Many remember when the original equipment manufacturing industry (OEMs) was hit hard during the onset of the COVID pandemic in early 2020. Within many markets, including but not limited to electronics, cars, trucking, and computers, the demand increased dramatically while the labor remained dangerously low. While the initial effects of the pandemic have faded away, its lingering presence can still be felt in 2021. Here are the five biggest challenges that original equipment manufacturers face in 2021.