Combatting rising costs by optimising operational efficiency
James Robinson, SYSPRO Head of Services Asia Pacific. Over the past five years, the manufacturing sector has demonstrated remarkable resilience, enduring many different challenges. Today, manufacturers face a renewed and formidable challenge with unexpected higher inflation raising the risk of yet another rate hike, threatening to destabilise the core economics of manufacturing businesses across Australia and the Asia Pacific region. The challenging economy has dominated the news for over two years, placing the manufacturing industry in the spotlight as it grapples with the challenges it presents. SYSPRO’s recent Global CFO Manufacturing Survey showed that over 80 per cent of respondents across the Asia Pacific region cited high inflation and interest rates as a cause of drag in the manufacturing industry. Meanwhile, 67 per cent of companies surveyed have been buffeted by economic uncertainty and supply chain disruptions. Yet, as history has shown, within every challenge the manufacturing sector has faced lies an opportunity for innovation and efficiency improvements. Strategies for optimising operational efficiency To counteract the effects of rising costs, manufacturers need to optimise their operational efficiency. Integrating their ERP (Enterprise Resource Planning) and MOM (Manufacturing Operations Management) systems can be a game-changer in achieving this goal. Here are several strategies for manufacturers to consider: Invest in technology and automation Embracing advanced technologies and automation is essential for the manufacturing sector. Innovations like ERP and MOM systems can significantly enhance operational efficiency by reducing reliance on manual labour, minimising errors and centralising information. Together with advanced technologies like the Internet of Things (IoT), artificial intelligence (AI), and machine learning, provide real-time data and insights, enabling informed decision-making and improved productivity. Optimise supply chain management Efficient supply chain management is crucial for minimising costs and ensuring a steady flow of materials. ERP systems help manufacturers enhance supply chain efficiency by diversifying […]