Digital transformation is disrupting everything, everywhere. And it’s no different in the light manufacturing industry, where profitability and sustainability are increasingly dependent on modern cloud technologies. But while digital adoption addresses productivity and efficiency shortfalls, it can also transcend these more traditional drivers by meeting and addressing a variety of less obvious business challenges and requirements.
In this blog, we explore some of the biggest challenges facing the light manufacturing industry in Australia and how the right cloud-based business systems can mitigate these challenges and help light manufacturing companies advance and scale.
Vulnerable supply chains
The ABS found that over a third of all Australian businesses experienced supply chain disruptions in February 2022. While this represents a reduction from the full-scale disruption of previous years, delivery delays, supply constraints and increased costs mean supply problems persist. For light manufacturers adhering to tight and strict timelines, continuing disruption drives home the importance of tuning supply chains for maximum resilience.
The need for agility in the supply chain is not new. But increasingly, it is the efficiency-seeking companies who invest in the overhaul and digitisation of their supply chain configurations that can hardwire true resilience into their operations, no matter what is on the horizon.
That makes this a good time to consider software-driven strategies that deliver full supply-chain transparency and allow operators to manage and optimise inventories, deliver products faster and more accurately, and improve the quality of financial management.
Controlling manufacturing overheads
Reducing overheads is challenging in any climate, but continued inflation and the anticipated recession are already creating a significant cash and profit squeeze for manufacturers. As business leaders seek to rightsize the cost base of their operations with surgical cost-cutting, it’s critical to avoid a slash-and-burn approach that may only offer a short-lived trickle of savings. Rather than drastic overhead reductions such as layoffs, manufacturers should seek out new ways to become faster and leaner sustainably.
This may mean focusing on technology that can deliver operational efficiencies through automation or streamlining workflows. Reliable, accurate data is essential too. Rather than waiting for monthly reports, modern manufacturing systems can provide an instant view of the current financial position, allowing leaders to drill into the data and see what’s happening at any given time enabling new business opportunities – or problems – to be acted on immediately.
Understanding the customer
Most in the light manufacturing industry will have some insight into what motivates their customers. But customer data is often spread across siloed commerce, sales and marketing systems, making it impossible to get a complete view of the customer and customer segments.
The successful manufacturer leverages unified data to push their understanding further. They use data as an insight-generation engine for increased customer engagement, keeping existing customers happy by responding faster to changing customer desires and expectations and earning new ones by developing data-led products and services that engage customers in a more targeted way.
Likewise, sales and marketing teams use an aggregated single source of truth across products, services, and the organisation, to deliver more accurate quotations based on customer segments, define pricing, deliver discounts and flexibly manage promotions.
Longstanding legacy companies are faced with a choice: modernise or become obsolete. Today success means having real-time visibility into performance, operations, assets and services across the business. It means having access to accurate data to make informed decisions and streamlined processes and controls to drive productivity and minimise costs. With the systems designed for the varying needs of their industry, light manufacturers will be well-positioned to build agility, logistical and operational efficiencies and sustained customer relationships to increase customer loyalty and growth.
NetSuite is the platform for growing light manufacturers
For wholesalers, distributors and others who need to assemble products or perform light-manufacturing activities, NetSuite Advanced Manufacturing is a single integrated cloud solution that extends the end-to-end processes of NetSuite. It’s specifically designed to help manufacturers reduce operating costs, increase revenue and better manage their business and supply chain processes. Specialised capabilities include integrated inventory and dynamic replenishment, manufacturing resource planning, warehouse management, customer and partner relationship management, and eCommerce.
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More than just NetSuite experts
At Annexa, we provide industry-leading solutions for light manufacturers customised to the NetSuite platform, including financial management. With our in-house integrations, extensions, partnerships and full-service capabilities, we deliver end-to-end solutions for our customers, and provide training and support to ensure the successful implementation of the NetSuite platform.
Annexa is a leading NetSuite partner with extensive experience designing and implementing comprehensive and customised business systems, including payroll solutions, financial management, warehouse management and ecommerce solutions. Contact us today to speak to an expert to learn whether we are the right NetSuite implementation partner for you.