Business Automation and Software Blog

Baby boomers are retiring en masse, and the manufacturing sector is hungry for new talent. Millennials may just be the answer to combat the continuing manufacturing labor shortage. A Deloitte report showed that millennials, who are already emerging as leaders in technology and other industries, will comprise 75 percent of the global workforce by 2025.

Manufacturers are in the business of producing goods that consumers want to buy. The best possible scenario for this type of business is when the products can be made at a reasonable price so the company can show a profit when they are sold to a wholesaler or a distributor. Green products are a definite consumer favorite, with many buyers weighing a product’s environmental impact before making a purchase. Sustainable manufacturing is an important factor in the circular economy since consumers have shown a distinct preference for these products.

Manufacturers are no different from any other type of business. They need to manage their cash flow properly if they are going to keep the company afloat. The global pandemic has only added to the stresses that owners and managers have faced recently. They are competing against other manufacturers at home and worldwide and the cost of raw materials is continuing to increase, making it more challenging to keep costs under control. Customers continue to expect high-quality products at a reasonable price. Manufacturing accounting must be a priority if the goal is to control costs and boost cash flow.

If you are the owner or a manager of a manufacturing business, you know that keeping your workflow processes running smoothly is a key component in meeting your obligations to your customers and keeping productivity at an acceptable level. Without a steady stream of orders, it will be challenging, if not impossible, to keep the business operating successfully for very long. An enterprise resource planning (ERP) system can provide several benefits that can help a manufacturing business run more efficiently, keep costs in check, and even boost profits.

Karl Schroeder, the futurist and science fiction writer, said, “Foresight is not about predicting the future, it's about minimizing surprise.” Business owners know they can’t just fly by the seat of their pants when making decisions; they need good information to evaluate their options and make the best choice based on the facts at hand. The best ERP software options are all about connecting processes so executives and managers get a complete view of the business under one system.

According to a Statista report from 2018, as many as 21 percent of supply chain professionals say their biggest organization challenge is visibility. Emerging markets are complex, boasting millions of outlets, thousands of distributors, and billions of potential transactions. This leaves manufacturers managing a vast network of small and big distributors while also managing the sometimes-conflicting needs of channel partners.

According to a global survey conducted by SYSPRO to understand how manufacturers and distributors handled the operational shifts brought on by COVID-19, more than half were impacted by supply chain disruptions. In addition, 47 percent of businesses were unable to function due to reliance on their on-premises operational staff. And nearly a third felt that their business systems did not provide them with the availability and accessibility to manage the changes the pandemic introduced.

Did you know that the average cost of a data breach in 2020 was $3.86 million USD? While that’s a 1.5 percent decrease over 2019, it’s still a hefty price tag. Lest you think that smaller businesses aren’t as much at risk, think about all the data that is in your ERP system. If the wrong person were to gain access through hacking or ransomware it could spell disaster for your business. Attackers could steal financials, manufacturing secrets, and other sensitive information. Cybercrime can even go so far as halting critical infrastructure, effectively crippling your business.

The popularity and availability of online purchasing continues to rise. With so much competition, businesses may also rise—or fall—based on their customer service. Customer service is crucial to survival, and manufacturers can provide an excellent customer experience by ensuring customers get accurate information about their orders in a timely fashion.

It seems as though, in the last year, there has hardly been one company that has not tried to figure out a way to go digital and run business over the internet. Ecommerce is a familiar model for most business-to-consumer (B2C) organizations. In 2020, it became rapidly familiar to many business-to-business (B2B) enterprises as well, and many entered the ecommerce space for the very first time.