26 Jul 2021
We are over halfway through 2021, and obviously, it is not easy for manufacturers. In fact, they have to deal with various obstacles like the covid 19 pandemic, the skill gap, the increasing demand of customers, etc. However, everything has its own solution, and the manufacturing industry is still expected to continuously grow in the future. In this article, we would like to list several main challenges facing the manufacturing industry as well as solutions to cope with them.
Inventory management
One of the biggest challenges that manufacturers, no matter which size they are, is to keep track of the inventory. In fact, inventory tracking is a time-consuming and high demanding process. Nowadays, many enterprises, especially the small ones, choose to check stock manually. However, obviously, it is inefficient, error-prone, and even at risk. Just a small error can lead to inaccuracies, understock or overstock, and unexpected damages.
However, thanks to the help of innovative technologies such as the Inventory Management solution in Synergix ERP System, managing inventory becomes much simpler. This solution helps manufacturing firms effectively manage the status of all materials using different inventory tracking methods such as lot tracking, serial number tracking, grouping by category or class. Inventory managers can ensure that raw materials are enough for production, and all completed goods are ready to be delivered to customers.
Shortage of skilled labor
Nowadays, although advanced technology becomes more and more popular and can replace people in many stages of production, workers still are needed for production management, problem-solving capacities, etc. However, manufacturers are struggling to deal with the severe lack of skilled workers. In fact, there are many reasons for it, such as baby boomer retirements, economic expansion, or the gradual decrease of technical education programs, etc.
It is obvious that this problem needs to be solved as quickly as possible, and here are some solutions. Manufacturers can improve their workers’ skills by creating programs for lower-skilled employees or attract young talented employees by cooperating with technical schools or offering apprenticeships and internships that lead to full-time employment.
Project management
In the manufacturing industry, projects are often time, cost, and quality sensitive. As a result, to be able to roll out items to clients, each project should be strictly regulated. In fact, a simple error can cost companies millions of dollars in revenue and profit, so it is extremely stressful for manufacturers.
To solve this problem, enterprises can choose an integrated software to simplify this process. An ERP system can provide real-time visibility as progress is made, material procurement status, multi-processes production status, and even production quality control. Hence, it gives managers more control while also allowing them to have more flexibility and transparency over their production. This enables them to track the execution of multiple departments and make important business decisions from there.
Forecast customer’s growing demand
Today, many manufacturers have difficulty with predicting product demand in the future. If a company is unable to forecast future product demand, the supply chain may be negatively affected, resulting in an expensive surplus or a loss of profit due to missed demand.
However, many advanced systems are available now to help enterprises overcome this obstacle. For instance, ERP software allows manufacturers to easily estimate the number of items they should sell in the next few months or even the following years via advanced reporting tools and historical or comparative data.
Conclusion
Although manufacturers have to face many obstacles, especially in the Coronavirus pandemic, manufacturing is still an extremely promising industry. Moreover, we believe that our ERP system is absolutely a powerful assistant that helps manufacturing companies overcome those challenges.
To accompany manufactures on the digitalization journey, Singapore Government has extended Productivity Solution Grant (PSG) until March 2022. By that, any eligible companies that adopt Synergix ERP software can get a chance to receive a funding of up to 80% of the qualifying cost, capped at $30,000.
Should you wish to know more, please do not hesitate to contact our consultants.
