How Can Manufacturing Software Improve Supply Chain Visibility?
Posted in Cloud ERP on June 24, 2013
Manufacturing trends are driving the industry, and executives are navigating survival strategies.
Owing to the positive effects of globalization and modern manufacturing methodologies, the industry is healthy and thriving. However, a post on the Aberdeen Group blog says there are common concerns that continue to challenge the industry, and the value of manufacturing software can’t be understated.
Here are six key concerns of manufacturing leaders.
- Risk: Manufacturing companies typically have risk within their supply chain network regarding tier one or tier two suppliers. The reason is that they don’t have the same level of robust technology solutions as their end customers.
What can you do to align everyone in the supply chain around compliance? Many companies audit suppliers, although that doesn’t help much. After all, the suppliers know the audit is coming and therefore make necessary changes to prepare for it.
- Visibility: You can’t only have visibility in small windows. Your suppliers should be running a robust application that provides real-time visibility into how they’re performing at any area at any time. In other words, what raw materials are they using? Do these raw materials cross any compliance lines? Are they coming from conflict zones?
The value of manufacturing ERP software like NetSuite is the real-time data capture it provides. It allows manufacturers to evaluate their suppliers at any given time. Having great visibility into your supply network is the key to keeping your suppliers in sync with your compliance agenda.
- Improvements: Continuous improvements are possible when you have good data and metrics, business intelligence that indicates performance.
- Money: Bottom line concerns, the Aberdeen Group post explains, include “effectively managing costs, budgets, returns, savings, cash flow, profit, margin, and, in particular, driving revenue growth.”
- Time: “Manufacturing executives are in a race against time,” the post says. “From time-to-market to real-time response to critical issues, getting the job done on time is an important driver.”
- Change: Visualizing change is an important skill, but there’s a lot of uncertainty in this shaky economic and evolving tech era.
Source: Aberdeen Group, May 2013