Canadian Manufacturing

SYSPRO study shows need for manufacturers to collaborate with customers and suppliers

This online survey assessed the current sentiment of 163 manufacturing and distribution industry professionals in EMEA, North America and APAC.

April 12, 2022   by CM Staff

MISSISSAUGA — SYSPRO, a provider of ERP software, released the findings of their 2021 global research study that explores the challenges and solutions to ongoing supply chain disruptions that manufacturers and distributors face today. This online survey assessed the current sentiment of 163 manufacturing and distribution industry professionals in EMEA, North America and APAC.

The report reveals four key themes and highlights the need for a long-term digital strategy for manufacturers and distributors that incorporates improved customer centricity, external collaboration and data driven decision-making to engineer a bounce-back from the disruptions caused by the pandemic.

Theme one: There is a disconnect between investment in internal efficiencies and external collaboration

With global lockdowns and ongoing disruptions driving increased pressure, it comes as no surprise that 70% of businesses experienced supply chain disruptions over the last few years. Concurrently, 60% of businesses were unable to engage and collaborate with customers and suppliers in real-time. As a result, those businesses were often unable to deliver to their customers.

Advertisement

The supply of inventory was not protected even though 65% of manufacturers and distributors invested in systems aimed at meeting order requirements and 64% of businesses invested in systems to manage inventory control.

Theme two: Digital roadmaps do not align to execution

The survey found that while building a digital roadmap, 69% of businesses considered a digitalization strategy aimed at enhancing existing business processes with digital technologies. However, only 29% of businesses committed to a full-fledged digital transformation strategy.

48% of businesses committed to improving customer service, yet only 23% of businesses included external collaboration (i.e. the ability to collaborate with customers) as part of their digital strategy.

Theme three: Supply chains are not competing at a global level

When asked about technological investments, 47% of businesses had invested in sensors, and IoT networks. At the same time, only 20% of businesses had invested in data analytics tools to process and analyze the data that they were collecting, while only 5% of businesses had looked into AI and ML to draw any long-term benefit from the data collection.

Theme four: Customers are placed at the end of the supply chain and not at the center

When exploring the domino effect of the above challenges, it was not surprising that only 22% of businesses had experienced revenue growth and only 26% of manufacturers reported that their customers were satisfied with them over the past 12 months.

“Overall, the study showed that your digital roadmap should be carefully aligned to changing business needs. An ERP system can support manufacturers and distributors by providing the platform that helps with automation of business systems. to handle procurement and sourcing policy changes, distribution and lead time planning; and analytics providing data real-time to support improved decision-making. While there has been downtime, manufacturers have the opportunity now to make a change to improve operational efficiency and thrive now and into the future,” concludes De Matos.

To review the full report, visit this link.