Using Cloud ERP to Navigate Economic Uncertainty in The Discrete Manufacturing Sector

Article Author: Sam Frumboli

“Lean” isn’t just a New Year’s resolution for the gym, it’s your manufacturing future. While we aren’t in a “recession” according to the traditional definition, there are some economic indicators that we are headed towards further disruption and operational challenges as we navigate through some unprecedented obstacles in the discrete manufacturing sector. 

And while we might not be in a recession per say, we know your business is feeling the effects of the skilled trade labor shortage, increased spending, increased inflation, cost of operation, compliance, changes in government regulation, and drastic shifts in consumer behavior. With all that said, the “I’ll fix it later” approach no longer applies to your ERP software, and here’s why. For many years, manufacturers have been able to get by on manual processes, cobbled or home-grown systems, and outdated technology but that all changed after COVID. As many retired, the workforce got younger, the skilled trade labor field dried up to a scarce pool of resources, and the AI and cloud tech boom happened; manufacturers faced unprecedented operational challenges.

It’s more important than ever, especially in manufacturing, to keep operational costs as low as possible to remain profitable. That means placing a strategic focus on prioritizing: 

• Achieving lean manufacturing operations
• Doing more with less via automation
• Freeing up team members to focus on value-added activities (lower admin costs)
• Reduced cost of operations through process and efficiency improvements
• Improving technology and infrastructure, reducing overhead
• Leaning on AI, ML, and agentic AI to solve business gaps

With the help of a new ERP, discrete manufacturers are seeing tangible results and improvements in: 

1. Increased cash flow with better management of accounts receivable, accounts payable, automating invoicing, electronic payments, and increased data accuracy
2. Company wide visibility and real-time insights/KPIs
3. Streamlined production and cost reduction at scale
4. Process automation and reduction of inefficiencies, redundancy, and human error
5. Waste reduction with optimized manufacturing execution, inventory efficiency, and order management
6. Business agility, demand forecasting, and real-time adjustments to avoid overstocking or overstaffing
7. Efficient supply chain management with better visibility into materials, shipping, vendor relations, and even the ability to better manage delays and pivot
8. Scalability through cloud operations. Scale up or down to meet demands and adjust to match new requirements without disruption
9. Data driven decision making based on historical performance not guesswork
10. Stronger internal communication, collaboration, and retention with modern software that appeals to a younger workforce
11. Better customer satisfaction and retention with accurate account management tools, order management, and a 360 degree view of your customers. Proactively communicate and personalize your offerings to increase demand and new business sales

Many manufacturers, like yourself might be saying, “sure, that all sounds great but where do I start?”. If you are already drowning and putting out fire drills left and right, disrupting your business with a new ERP evaluation and a sizable implementation budget seems like the very last thing on your mind. That’s where we come in.

The right partner, coupled with the right ERP software is how you implement these strategic initiatives in a low-risk, efficient, and thoughtfully executed manner. As we enter times of economic uncertainty, a new ERP is not a want, it’s a need. Modernizing your manufacturing operations is not a want, it’s a need. Leveraging automation, process intelligence, and AI are not wants, they are needs. Now is the time, before things get too far away from you, to explore new software, technology, and industry best practices with a partner you can trust. 

For over 40 years, we have helped companies solve the “why now?” question and come out on the other side productive, profitable, and thriving. We help our clients implement strategies and processes that allow them to remain agile in the face of adversity, pivot quickly to meet changes, and adapt their business to meet the demands of their industry.

How Decision Resources Can Help

If this all sounds relevant, we would love to talk. Contact us today to explore a modern ERP for your manufacturing business. Simply call, 412-562-9660 or email us at info@decision.com to request a complimentary consultation. We look forward to partnering with you!

More About the Author:  Sam Frumboli

With over 15 years’ experience partnering with businesses in the ERP and manufacturing sector, Sam has made it a passion of hers to help connect businesses with the right business partner, tools, and technology. As a demand generation leader, business coach, and freelance marketing consultant for start-ups and established brands, Sam focuses on dissimilating complex ideas into actionable insights through creative marketing strategies and tactics. She has notably been featured in the Sociable, Women in Manufacturing, 40-Under-40, The Global Interview, and Forbes.