Industry Definition and Core Attributes
Manufacturing represents product-centric organizations that can be segmented into two distinct groups:
- Process manufacturing, which includes chemicals, metals, pulp and paper, consumer packaged goods (CPG), food and beverage (F&B), fashion, and life sciences
- Discrete manufacturing, which includes automotive, aerospace and defense (A&D), industrial machinery, electronics, and semiconductor (high tech).
These two groups can be broken down further into distinct value chains. Process has Asset Oriented (AOVC) and Brand Oriented (BOVC) value chains, while Discrete has Engineering Oriented (EOVC) and Technology Oriented (TOVC) value chains. The supply and demand complexity for each value chain has variability, with discrete possessing higher supplier complexity than process manufacturers.
There are unique industry challenges and varying priorities across manufacturing segments, and it is critical to understand these differences. However, while there are many variables across value chains, segments, enterprises, and even individual locations within a company, all manufacturers can benefit by fostering resilient decision-making.