The manufacturing industry began with a continued growth in 2019 but is ending with a slowdown supported by fears of a risk of downturn in the industry. The manufacturing sector is highly driven by labour market and the dichotomy that exists currently is a slowed-down hiring coupled with difficulty in filling up critical jobs. The manufacturing sector is highly sensitive to costs and hence deriving value and driving business value boils down to the effective use of technology to improve operations. It is highly anticipated that technology will drive the future of this industry for insightful information and predictive analytics.
Shorter Product Life Cycles Demand Modern Solutions
The digital disruption with market turbulence in the VUCA world mandates streamlining of operations and optimisation of value chains. The digital demands have shortened the product life cycles with unending demands on reducing lead times with aggressive support services. It is thus imperative to be supported by a nimble yet agile ERP solutions that can accelerate the pace of manufacturing companies to support them in the ever-increasing pace of digitalisation.
- The growing demands on the manufacturers require a revamp of the legacy systems to stay globally relevant. In the absence of an updated system, there is a likelihood of industries and companies getting left behind by their more efficient counterparts.
- Manufacturing companies require strong systems covering across geographies, statutory rules and regulations, taxation and legal framework and accounting standards with highly evolved intercompany transaction capability.
- Where complexities of various support systems to cater to manufacturing business demand exists, integration of these systems with a contemporary and capable ERP system brings about its own challenges through lack of subject matter expertise.
- Manufacturing companies with cross country, cross regional existence face difficulties in standardisation, consolidation and management of business processes across all divisions.
- Need for improved analytics based on the operational model of a manufacturing company is essential to ensure consistent high level performance.
Business Made Easy with the Right Partners
- Standardisation is the key to streamlining and streamlining is the key to creating better business value. To reach the objective of standardisation, replacement of archaic legacy systems and implementation of ERP systems is critical. The implementation should take care of the underlying critical processes and standards with the support of a strong implementation partner with a good subject matter understanding.
- The implementation of ERP paves way to efficient data management and opens door for data analytics to support companies in their accelerated growth journey.
- With digitalisation through IoT (Internet of Things – The new age technology most relevant to manufacturing companies); there is a lot of unravelling of operations information to help run the shopfloor most effectively based on unbiased information gathered. However, to utilise the information for onward process execution and analytics, perfect integration with the business / ERP system is important.
- Product development initiatives within the manufacturing companies require enhanced product research. With high level of customisation demanded by customers, a highly responsive ERP implementation will provide the door-way for guidance on the product development and help in innovating the products that match the market requirements.