Insights

4 Common Growth Challenges for Manufacturers | Logiq Group

Written by Mamie Prestidge | Jun 10, 2024 12:15:00 PM

In the dynamic landscape of modern manufacturing, businesses are confronted with a myriad of challenges that demand innovative solutions. From workforce dynamics to global supply chain complexities, escalating costs, and the imperative for financial visibility, the industry faces a pivotal moment that requires strategic insights and technological advancements to thrive in an ever-evolving environment. Here are 4 common issues manufacturers experience during growth and how an ERP system can help...

Addressing Talent Attrition

Leveraging ERP for Workforce Optimisation

Challenge: Skills shortages and high workforce turnover impact operational efficiency and hinder business expansion

How ERP Helps:

  • Skill Matching: ERP systems integrate HR and skills data, allowing organisations to match existing workforces with new roles efficiently

  • Training and Development: ERP tools support employee training programs, facilitating skill development and adaptation to evolving industry demands

  • Workforce Analytics: ERP provides real-time workforce analytics, helping organisations make data-driven decisions for talent retention and strategic planning

Navigating Global Supply Chain Complexity

Streamlining Operations with ERP

Challenge: Fluctuating global demand creates uncertainty in inventory and production planning

How ERP Helps:

  • Demand Forecasting: ERP systems use advanced algorithms and historical data to improve demand forecasting accuracy, enabling better inventory and production planning

  • Real-time Inventory Management: An ERP provides visibility into inventory levels, helping organisations adjust production schedules and orders in response to demand changes

  • Production Scheduling: ERP systems optimise production schedules by aligning them with accurate demand forecasts, reducing the risk of overproduction or stockouts

Economic Pressures

Enhancing Cost Management with ERP Solutions

Challenge: Escalating manufacturing and labour costs post-pandemic, necessitating efficient cost management

How ERP Helps:

  • Optimising SG&A Functions: ERP aids in optimising selling, general, and administrative (SG&A) functions, aligning them with the digital environment

  • Enterprise-wide Transformation: ERP-based transformations provide an opportunity to rebuild processes, making them efficient, digitally adaptable, and aligned with next-generation enterprise software

  • Data-Driven Decision-Making: ERP systems facilitate real-time and historical data analysis, enabling well-informed decisions to control costs effectively

Financial Visibility

ERP as a Foundation for Success

Challenge: Financial mismanagement, lack of visibility, and outdated systems contributing to business failures

How ERP Helps:

  • Integrated Financial Management: ERP integrates financial data across departments, offering a comprehensive view of the organisation's financial health

  • Adaptability: ERP systems are adaptable to evolving business needs, providing flexibility and agility in responding to financial challenges

  • Data-Driven Insights: ERP ensures a 360° view of operations, allowing organisations to identify areas for improvement and make informed financial decisions

Contact us for a free ERP consultation:

contact@logiqgroup.nz

0800 564 471