Business Automation and Software Blog

As a manufacturer or distributor, you have just been through a challenging few years. You know the decisions you make for your business will have implications over the months and years to come. SYSPRO Cloud ERP is a system that is a complete business solution with software, infrastructure services, and support. 

Three decades ago, a company would likely justify the expense of purchasing a new ERP system on whether it could improve the balance sheet. At that time, an integrated enterprise application gave a business a return on investment (ROI) by reducing inventory costs, boosting days sales outstanding (DSO), and increasing margins. Now, post-modern ERP solutions are both broader and more flexible. They can deliver ROI in multiple ways, directly and indirectly. 

The pandemic has forced businesses of all types to change their focus. Manufacturers and distributors are no exception. In a recent survey, CFOs and finance executives were asked how COVID-19 changed the way they do business. These finance leaders revealed they are shifting their priorities in 2022 to adjust to changing business needs. While top priorities varied heavily by industry in terms of actual ranking, US finance executives surveyed consistently identified the following 5 critical areas of focus for 2022:

Business owners and managers had been changing their approach to Inventory management toward a just-in-time approach. Then major supply chain disruptions started to occur over the last year. Supply chains are still showing signs of vulnerability, no matter which inventory management methodology is selected. Companies must be proactive in reassessing their practices to keep orders flowing in a predictable manner.

If 2021 was a year of transition, we can expect this trend to continue into 2022. The global pandemic still stubbornly hangs on and there isn’t a clear end in sight. Organizations and industries must continue to adapt to fast-paced change and uncertainty in the market. To accomplish this goal, their digital transformation strategy must be able to keep pace.

It’s no secret that manufacturers have experienced tremendous challenges during the COVID-19 pandemic. They have faced supply chain disruptions, issues attracting and keeping workers, and rising customer expectations. As 2022 starts, manufacturing quality control is a big issue. Success in this area involves visibility and traceability throughout the entire supply chain.

The global coronavirus pandemic has forced manufacturers to make significant changes in the way they do business. Manufacturers will be forced to rely on technology more significantly for inventory forecasting. The companies they deal with as part of their supply chains will also be relying on digital connections in their interactions.

The effects of the worldwide pandemic shook the manufacturing industry in 2020. The supply chain experienced major disruptions leading to market volatility. Businesses were forced to adapt as a result. 2020 Syspro research found that over half of businesses were impacted by supply chain disruptions due to COVID-19. Manufacturing management became challenging, as companies could not operate at the efficiency as before the pandemic due to operational inefficiencies and the need for more remote collaboration.

Businesses are used to managing known supply chain risks. Transportation and supplier issues are something they can predict will happen at some point and take steps to mitigate their impact. Other risks, such as a global pandemic or a natural disaster, are the type of low-probability, high-impact events that companies likely did not foresee. Many did not plan for them and don’t know how to manage their supply chains faced with the ongoing pandemic threat, natural disasters, and disruptions that have taken place globally. Supply chain management is more challenging than ever in the face of these events.

Digital transformation has become a “catch-all” term that has been used often recently. It looks different for each company. Briefly, digital transformation refers to the way digital technology is integrated into all parts of a business. Cleaning data is an important factor in ensuring the business operates efficiently, remains compliant, and continues to deliver value to its customers.