Residual effects from COVID-19 shutdowns are leading to significant waves of disruption in the supply chain. And unfortunately, experts are predicting the worst is yet to come. Analyst firm Moody Analytics recently indicated that even with the optimism around the recovery of the global economy, this growth “may be stymied by supply-chain disruptions that are now showing up at every corner.” To top it off, ongoing labor shortages and worker strikes are impacting companies’ productivity and ability to keep up with consumer demands.
The past couple of years have felt like a never-ending cycle of bad news and discouraging headlines, including the 2021 supply chain challenges and a global chip shortage. It can feel overwhelming for organizations that are just trying to maintain “business as usual.” However, with every negative market disruption caused by the pandemic comes opportunity—to do things better and to improve systems, so these issues don’t repeat themselves.
Business leaders can apply this sort of thought process to the delicate structure of the global supply chain.
Mitigate Supply Chain Challenges with Cloud ERP
In today’s goods-oriented economy, the supply chain is fundamental to revenue for companies and the ability to provide physical products to customers in a timely manner. Savvy business leaders can take the market volatility from the past couple of years as an essential learning experience. Organizations need to take a closer look inward at the cross-connected implications of business operations in order to more easily accommodate unexpected external changes in the future.
Like other markets and industries that have experienced dramatic pandemic-induced shifts, businesses within the supply chain can turn to technology to overcome challenges and streamline operations. An example of such a technology is seen in a cloud-based enterprise resource planning (ERP) solution. Cloud-based management systems like ERPs enable organizations within the supply chain to achieve cross-connected awareness and real-time visibility of company data. Insight into these sorts of interconnected systems can help companies better anticipate and react to supply chain disruptions, helping to mitigate and/or prevent damaging blows.
To dive even deeper, a cloud ERP solution acts as a single business management platform for organizations of any industry. The solution helps connect business records, data sources, and systems in a centralized location and then integrates that data seamlessly with mission-critical applications. Information from every department is synchronized easily accessed via a web-enabled device at any time and location.
To apply the benefits of cloud ERP more specifically to the supply chain, organizations that adopt this technology have the below benefits within reach:
- Visual insight for managing inventories, supplier deliveries, and production schedules. Cloud ERP software empowers businesses to visually evaluate and track inventory, material requirements, and logistics more easily. The technology often provides a visual schedule board where employees can see graphical views of its production schedule and order schedules. Businesses can see if scheduled operations will be impacted by any outside disruptions, and if so, adjust priorities. Equipped with updated, accurate, internal information, businesses then have the confidence and insight to forecast accurate production schedules. This insight ultimately helps to build trust and credibility with key stakeholders such as customers and partners.
- Operational capabilities to foresee constraints and identify alternative solutions. A cloud ERP solution has the unique capability to enable businesses to manage every aspect of the business in one place. With it, a company can easily view and analyze data across all departments. This sort of comprehensive transparency and real-time insight help a business strategically react to operational constraints and disruptions and take a proactive stance. A cloud ERP solution enables real-time coordination and empowers leaders with a view into centralized reporting and approvals.
- Comprehensive data and KPIs to make quick pivots and gain a competitive advantage. Empowered by data and visibility across departments, companies that leverage cloud ERP technologies can anticipate shortages and changing demands in advance. With the technology, companies can more effortlessly monitor leading KPIs and then act quickly. Such KPIs give early signs of future disruptions or transformations within an organization’s supply chain. This capability then enables decision makers to react faster and more strategically, ultimately leading to a competitive advantage over other organizations, especially in a tumultuous climate.
Agility, Resiliency During Supply Chain Disruptions
The great supply chain disruption is forcing organizations and industries to adopt new tools and processes that help leaders react to and anticipate changes. Businesses that adopt cloud-based ERP solutions, like Acumatica Cloud ERP, will be more resilient and agile during ongoing and future supply chain disruptions.
To learn more about Acumatica’s cloud-based management solution, contact our team today.