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The current inflationary conditions in Australia are posing a challenge for manufacturing businesses, causing them to struggle with spreadsheets and inventory tracking. The escalating costs of raw materials and transport are making it challenging to manage stock effectively and set prices. To overcome these challenges and stay competitive, businesses must consider adopting cloud-based ERP software. With cloud ERP, they can improve materials resource planning and have instantaneous reporting on materials and costs, allowing them to reinvest in their growth. In these turbulent economic times, it's crucial to remain agile and embrace technology to stay ahead of the market demands. The benefits of cloud ERP cannot be overstated, and businesses must avoid suffering spreadsheet saturation alone by leveraging this innovative solution.
Centralised, real-time data
Digital transformation of manufacturing businesses is still ongoing in Australia, especially when it comes to updating procedures and processes that until now, have served manufacturers well. The old adage of ‘if it ain’t broke, don’t fix it’ has served traditional manufacturers well but inflationary pressures coming out of the pandemic and continuing in a world operating environment that includes international conflict requires new ways of managing manufacturing businesses. Manufacturers are finding the need to be flexible in the current dynamic environment challenging, especially if their inventory processes rely on spreadsheets, or even rely on in-premise enterprise resource planning (ERP) software. This in-premise software business model is reliant on fully functioning host servers and the risk of server issues puts the entire manufacturing chain in a perilous position.
"Inflationary pressures are forcing manufacturers to rethink their processes and inventory management strategies. By adopting cloud-based ERP software, businesses can alleviate the challenges caused by spreadsheets and in-premise software and position themselves as market leaders during these turbulent economic times.” – Andrew Mamonitis | Vice President of Manufacturing ECI APAC
Cloud ERP: Alleviating inflation pressure
A solution for manufacturing businesses is to use cloud-based ERP software. Enterprise resource planning (ERP) software in Australia has seen migration from on-premise software that is installed locally on the manufacturer’s computer servers, to being cloud-based, hosted by the ERP software provider and accessed through a web browser.
“Before we switched to JobBOSS2, our servers were all onsite, with an additional IT management and maintenance burden that we didn’t need. We really enjoy the flexibility that a cloud-based program gives us, and it’s proven particularly valuable when it comes to meeting the challenges of the COVID pandemic and making it possible for many of our people to work from home.” - Greg Dravis | ACP Solutions President - Read ACP Solutions case study here.
Manufacturers need to adopt digital transformation of their inventory processes and along with it a mindset of aggressive adopter of technology tools so that they can position themselves as market leaders during this turbulent economic and operating environment.
3 Key benefits of cloud ERP
When your employees don’t have to update spreadsheets, check the last time a spreadsheet was updated or the on-premise server was backed up, they have the time to grow your business. This is especially important for emerging leaders in manufacturing—those scaling up from small-medium to enterprise businesses. This is also important as inflation prompts wage increases to compensate and this results in less new hires.
Keeping track, in real time, of all raw materials and composites throughout the manufacturing process allows for quick decision making.
Cloud-based ERPs use a subscription model—no more server repairs and lower upfront outlays. Subscription means you can opt for the features your business needs and add to these as the market fluctuates and demands change. This flexibility allows you to be nimble rather than having to consider the capital expenditure involved with upgrading hardware.
In conclusion, the current inflationary conditions in Australia are proving to be a challenge for manufacturing businesses. However, with the adoption of cloud-based ERP software, these businesses can alleviate the pressure caused by spreadsheets and in-premise software and position themselves as market leaders during this turbulent economic and operating environment. With centralised real-time data, automation of administrative tasks, instantaneous reporting and tracking of inventory, and lower costs, cloud ERP software provides manufacturers with the flexibility and agility needed to adapt to changing market demands. It's time for businesses to adopt digital transformation of their inventory processes and aggressively adopt technology tools to stay competitive.
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