Utilizing MOM to counter rising material costs

By Alessandro Cereseto

Raw material prices have increased over the last years due to their popularity in various applications and industries. The demand for steel, aluminum and copper have risen significantly due to increased global demand from the automotive and electronics industry.

Industrial machinery manufacturers, who are depending on all these materials, can benefit from cost-saving opportunities by using Manufacturing Operations Management (MOM) to counter these rising costs.

Optimizing the supply chain for better decision making

The integration of MOM allows for optimized planning which can be used to make the supply chain transparent. It can be used to identify areas of inefficiency, such as long lead times, high inventory costs, or high transportation costs.

Additionally, optimizing the supply chain requires close collaboration between all stakeholders in the chain, including suppliers, manufacturers, and shippers. MOM provides clarity and a better understanding of more complex processes inside of the plant, enabling better decision-making.

Master your process through digital transformation

By tracking production output and ensuring that materials are used efficiently and effectively with our MOM, waste and scrap materials are reduced. Tracking the material flow is beneficial as it allows for greater visibility into production processes, allowing for more accurate forecasting and better inventory management.

Areas of inefficiency can be identified, and more cost-effective production processes can be introduced to the shop-floor. Finally, it can help identify potential bottlenecks and help improve production flow and speed.

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This article first appeared on the Siemens Digital Industries Software blog at