Like virtually every other vertical, the manufacturing industry is still contending with the fallout from the global pandemic.
What’s more, manufacturers face continuing threats of supply chain disruptions, some of which can be attributed to the global turmoil caused by Russia’s invasion of Ukraine. Talent shortages and increased competition are further magnifying the impacts of these business challenges.
Despite all this, the 2023 BDO Manufacturing CFO Outlook Survey reports that 69% of manufacturers are thriving. While manufacturers are undoubtedly employing a wide variety of tactics to navigate the aforementioned challenges, one key approach involves leveraging enterprise resource planning (ERP) technology.
ERP software is an all-in-one solution manufacturers can use to manage all of their core business processes, from inventory tracking to accounting and everything in between. The right manufacturing ERP software offers decision-makers unprecedented visibility and robust automation tools, enabling them to solve challenges like the following.
1. Talent Shortages
The ripple effects of the Great Resignation are still impacting manufacturers’ ability to hire and retain workers.
The co-occurring spike in baby boomer retirements exacerbated manufacturers’ hiring struggles and created a talent shortfall. Put simply, manufacturers are dealing with more vacancies and finding it difficult to find skilled workers in the existing talent pool to fill these roles.
ERP software can help alleviate the impacts of the talent shortage with its workflow automation capabilities.
By automating traditionally redundant manual processes, employers can optimize their labor resource-utilization practices and make the most of the employees they already have. Automating core processes can also boost employee morale and help manufacturers improve retention rates, both of which can maximize labor efficacy.
2. Increased Competition
The manufacturing space is more competitive than ever.
Downstream members of the supply chain, including end users, have grown accustomed to short turnaround times and expect manufacturers to fulfill orders at blistering speeds. Often referred to as the “Amazon Prime Effect,” this shift in expectations has placed increased pressure on manufacturers.
Enterprise resource planning software may not turn a manufacturer into the next Amazon. However, adding ERP software to an organization’s tech stack can help it be more competitive by facilitating process automation.
Additionally, ERP software provides the visibility decision-makers need to identify and remedy bottlenecks or productivity logjams. The result is a faster, more responsive operation.
3. Economic Uncertainty
Every industry, including manufacturing, is concerned about a looming recession. Manufacturers are already contending with high inflation, rising shipping costs, and soaring raw material prices.
Enterprise resource planning technology can help manufacturers mitigate the effects of a recession by providing decision-makers with a single source of truth. When all organizational data is stored and managed in one dynamic platform, business leaders can access real-time insights and adapt to shifting economic conditions.
With a manufacturing ERP at their disposal, business leaders can track and reduce costs, eliminate manual data entry, reduce operating costs, and adjust prices to keep pace with inflation.
Additionally, top ERP systems feature innovative forecasting capabilities, giving business leaders a glimpse into the future so they can brace for economic challenges.
4. Supply Chain Disruptions
ERP software is also a valuable resource for contending with supply chain disruptions. With the right ERP platform in place, businesses can:
- Increase supply chain visibility
- Adjust prices to offset disruption-related costs
- Move production to politically or economically safe countries
- Find alternate suppliers
Manufacturers can also use ERP software to manage their vendor relationships more effectively. Business leaders can leverage these capabilities to engage in “friendshoring” and forge long-term relationships with suppliers and carriers.
Overcome Your Growth Hurdles with ASC and Acumatica ERP
Adopting ERP software can elevate your company’s productivity, increase its agility, and provide the flexibility needed to overcome a wide range of growth barriers.
However, if you want to maximize your return on investment and achieve a condensed time to value, you must choose the right ERP software. Acumatica is the answer.
Acumatica ERP software is a modular, scalable, dynamic platform that includes an abundance of tools for manufacturers. It also features a unique pricing model designed to provide better value to businesses like yours.
If you’d like to learn more about the benefits of Acumatica for manufacturers, connect with Advanced Solutions and Consulting. As a certified Acumatica implementation partner, we can facilitate a seamless implementation process. Or, watch our Acumatica demo here.
Additional Manufacturing Resources
9 FEATURES EVERY MANUFACTURER NEEDS IN THEIR ERP SOFTWARE
HOW IMPROVED BILL OF MATERIALS AND ROUTING BENEFITS MANUFACTURERS
STUCK IN THE MIDDLE: WHY JOB SHOPS GET OVERLOOKED BY ERP AND MRP