ERA Enhances Saudi Manufacturing Company Amidst Pandemic Pressures
- The company commissioned ERA to assist in reducing its direct production costs whilst upholding the requisite standards of quality and service.
- It had restricted in-house expertise in identifying opportunities for cost optimisation or enhancing operational efficiencies.
- The company had undertaken substantial restructuring consequent to the Covid-19 Pandemic.
The pandemic has had a profound impact on the manufacturing industry globally, and Saudi Arabia is similarly affected.
As per a report issued by the Saudi Industrial Development Fund, the pandemic has precipitated a 20% reduction in the manufacturing sector’s sales during the initial half of 2020. Furthermore, a survey undertaken by the National Association of Manufacturers in the United States indicates that 78.3% of manufacturers anticipate a financial repercussion attributable to the pandemic.
The supply chain disruptions instigated by the pandemic have compelled manufacturers to identify alternative sourcing for their raw materials, resulting in elevated costs and protracted delivery schedules.
The survey further indicated that manufacturers are encountering diminished demand for their products owing to the economic deceleration, culminating in curtailed production and workforce reductions.
To ascertain how ERA was able to generate significant cost efficiencies for the Riyadh-based Production Plant, download the full case study.
Leveraging ERA's expertise, this Riyadh-based Production Plant achieved interim savings of approximately 2.3 million SAR. Further details are available by downloading the comprehensive case study.
