Managing Manufacturing with Cloud ERP Systems
Manufacturing is taking raw parts and materials and putting them together with machinery, human labor, and other tools to create a polished finished product. Though a simple definition, it highlights how complex the manufacturing process is. Recent events have raised that complexity exponentially.
For example, global supply chain issues caused by the pandemic, storms, trade wars, and more, compounded by the fact that the manufacturing industry has moved towards offshoring (transferring operations to and buying materials from overseas countries) in the last few decades, has resulted in lack of components (e.g., chip, lumber, metal, plastics, and more) and major distribution issues.
Dealing with the fallout of these unexpected challenges has taken a toll. Bloomberg’s take: “Manufacturers reeling from shortages of key components and higher raw material and energy costs are being forced into bidding wars to get space on vessels, pushing freight rates to records and prompting some exporters to raise prices or simply cancel shipments altogether.”
Unprecedented circumstances with high price tags damage manufacturing small and medium businesses, possibly to the point of extinction—unless they’re relying on a manufacturing cloud ERP solution.