How midsize manufacturers can stay profitable in unexpected times?

  • 08 June 2020
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Mid Size Manufacturer

The manufacturing industry is not immune to this unexpected and difficult time. The past few months have been tough for all industries especially manufacturing which has come to halt for time being with the novel CoronaVirus. Manufacturers have faced everything from production halt, trade tensions, supply chain volatility, and fluctuating supply and chain demand to an ongoing shortage of laborers going to their hometown. 

Even though such challenges could be managed, we were not ready for the uncontrollable and rising challenges that COVID-19 brought. This is the apt time to check the resiliency of midsize manufacturers. 

Operational Resiliency

Midsize manufacturers are responding to this pandemic by making strategic business decisions and considering every time opportune to make it right:  

  • Switching to a new mode of delivery to avoid pandemic-afflicted areas or border closures for business continuity. 
  • Adjusting shift patterns and factory processes to ensure maximum safety of workers. Providing them basic face masks, sanitizers, and access to gloves while monitoring their health.  
  • Modifying production and concentrating on high demand and urgently needed products. Collaborating with other companies for helping them out in their business endeavors and staying profitable. 

The million-dollar question is how are these companies adjusting to this business environment so quickly? The secret sauce of their success comes down to the combinations of 360-degree visibility, transparency, and on-time decision making.  

Increase visibility in internal and external processes 

Real-Time Visibility

Real-time visibility is the basis of small and midsize companies staying in the equation even in this unprecedented time. This pandemic is changing the world so faster that business leaders must keep a close eye on what’s going around in their business? Visibility over their supply chain operations, manufacturing outcome, production bottlenecks, raw material consuming, batch costing, and so much more. Smart leaders also keep their eye placed on any changing marketing dynamic.

This level of transparency and visibility can only be achieved when you have robust software in place. An ERP that facilitates you to check about any detail from almost anytime and anywhere. You can keep a constant tab on production output, quality management, production costing, capacity planning, production control and so much more with a single ERP such as SAP Business One.

Respond quickly to market dynamics

With Mobile ERP, manufacturers can stay informed and take decisive actions at the speed of thought. With everything synchronized at a place, leaders are empowered to mitigate any potential risks, avert possibilities of delay raw material procurement, and keep their stock ready for immediate consumption. SAP Business One mobile functionality facilitates business users to take on new opportunities early to minimize shipments delays, and costs while be in line with demand.

Furloughing employee instead of laying off 

Amidst these unexpected times, leading manufacturers are looking at furloughing employees to safeguard their business. With visibility over the entire operations and employee skillsets and experience, businesses can make the best use of smart ERP and deploy personnel to navigate the path of the storm. 

A glimmer of hope for manufacturers

The end game of this pandemic is unclear for us for everyone. But we also see glimmers of hope in the future. So, the best approach for manufacturers is to stay agile and gain the competitive advantage of having an ERP in place for unprecedented visibility over their internal and external processes. With the right technology and its usage, manufacturers will survive this tough time and emerge out of it stronger than ever. 

Nidhi Batra

About the author

Nidhi Batra is a marketing and brand communication professional with 10 years of experience working in the dynamic B2B marketing environment. She strategizes, writes, reviews a variety of content for demand generation and sales support activities. Having a Master’s in English from Delhi University, she knows how to navigate her readers on insightful journeys with her SAP published blogs and thought leadership content.