Sam Makad is a business consultant. He helps small & medium enterprises to grow their businesses and overall ROI. You can follow Sam on Twitter, Facebook, and Linkedin.
Enterprise manufacturing is an industry with its fair share of issues, just like any other. Some of these issues, yet, have no resolution. Many of them, however, have solutions currently on the market, but adoption hasn’t been universal.
Here are three problems holding back enterprise manufacturing, along with solutions when applicable.
1. Lack of Scalability
For a long time, the manufacturing industry has been defined by its relative immovability when it comes to scaling up or down. This is partially due to the nature of manufacturing itself. You need to build a facility large enough to allow for maximum necessary output. But when demand recedes during an offseason or year, that can lead to a lot of wasted resources. Unfortunately, there aren’t any viable solutions out there (as far as we know) that can make your manufacturing facility larger or smaller on demand. There are, however, a few other solutions that can help in manufacturing scalability
Robots are the way of the future. As you likely have seen in the news as of late, Robotics is creating a lot of buzzes. This can be a highly expensive endeavor, but robotics and automation can be key for manufacturers looking to the future for solutions to their scaling woes. This may seem fairly basic, but you have to ask yourself "why do I want to use a robot?" Amazon and Alibaba are two companies that have successfully implemented complex robotics in their warehouses. The same sort of technologies could soon be helping to manufacturers that need scalability. This would lower the need for full-time employees, and likely make the overall manufacturing floor smaller, as robots can be designed to move around in tight spaces.
Implementing a Cloud ERP for Manufacturing:
Cloud ERP software has been around for a while now. One of its greatest benefits is that companies can choose exactly the services they need, and only pay for those. This allows for businesses to quickly scale up or down depending on current demand. An ERP for manufacturing is a solution on the market right now that can help enterprise manufacturers solve their scaling issues.
The regulatory situation for manufacturers is another aspect that is holding them back from reaching full potential. While some forms of regulation are important for protecting public lands and resources, other laws are much more arbitrary and inhibit enterprise manufacturers from doing business.
ERP for manufacturing won’t change the laws of your state or region. However, ERP for manufacturing can help your company stay compliant with all relevant regulations. This is because cloud ERP for manufacturing automatically updates protocol when there’s an adjustment to regulatory standards. While this isn’t going to lift all inhibitors preventing enterprise manufacturers from doing business as they please, it will at least keep you in compliance—saving you time and money.
It’s somewhat rare to hear someone talk about monopoly in today’s world unless they’re referring to the board game. However, the manufacturing and industrials sectors are two areas that are seeing some mega-conglomerates resemble total monopolies. This is a huge problem for enterprise manufacturers because it makes it next to impossible to compete with the largest player in an industry.
This environment has grown out of the high number of mergers over the past decade, which has helped to consolidate manufacturing might into fewer and fewer enormous corporations. While this is, of course, no issue for the companies that have rose to be number one, it creates a bad situation for everyone else. Smaller players are forced out of business, which allows the big players to price fix and not consider the quality of their product. The only way to combat this is with intervention from the government, which ironically goes against the previous point.
Enterprise manufacturing is an industry of hard-working people who put the U.S. economy on their backs. However, there are some problems that are keeping this field from reaching its true potential.
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