The COVID-19 pandemic has affected industries around the globe, with an expected 5.2% contraction in global GDP in 2020, according to the World Bank. In its June 2020 report titled Global Economic Prospects, the World Bank calls this ‘the deepest global recession in decades.’
Sectors like tourism, apparel, and finance have been especially vulnerable, along with manufacturing. Shipping delays have affected the supply of resources and raw material, safety guidelines have prevented manufacturing facilities from operating at maximum capacity, and regular and large orders have been cancelled. This has resulted in shortages of products from pharmaceuticals to food items to clothing.
Given the significant impact of COVID-19 on the manufacturing industry, it comes as no surprise that stakeholders are devising long-term strategies and plans on how to rebuild the industry and create a foundation that will add much-needed stability to the manufacturing sector.
A factor worth considering in this regard is enterprise resource planning or ERP, which is a method of integrating key business processes and operations into a centralised system. ERP has several benefits, for instance, cost reductions, increased efficiency and productivity, reduced risk and human error, and accelerated growth.
With a NetSuite partner in Sri Lanka, for instance, a business in the manufacturing industry can access a cloud ERP system built for the industry and also considers the unique demands and challenges of the organisation. NetSuite’s cloud ERP system is equipped with features like customer relationship management, order management, production control, and shop floor control. These features make the cloud ERP system ideal for businesses in the manufacturing sector.
There are many ways in which ERP is the foundation for post-coronavirus manufacturing and these are key areas that will benefit from a cloud ERP system or cloud CRM solution.
A NetSuite partner in Singapore will explain how the different features of an enterprise resource planning software can benefit a company and supply chain is a key feature that will play a role post-coronavirus. NetSuite’s supply chain management feature allows businesses to easily control and monitor their manufacturing processes, following the concept of location irrelevance.
With this cloud ERP system, a business can have a global, real-time view of their inventory status and easily collaborate with supply chain partners. The product also comes with distribution requirement planning or DRP capabilities for multi-location planning.
The integration of supply chain management with business operations will lend a significant amount of stability to the manufacturing industry in the coming months and years. This is because ERP software recognises the vulnerabilities of supply chain and how easily they can break when the world is faced with a pandemic like COVID-19.
One of the key vulnerabilities manufacturers faced this year is relying on a single supplier. When China went into total lockdown during the first few months of the year, manufacturers around the globe were suddenly faced with supply shortages. Many companies realised the risk of relying on a single supplier for components and materials in this manner.
Along with relying on a single supplier is relying on suppliers from one location. Governments around the globe are still enforcing total or partial lockdown to contain the spread of the virus. This means that suppliers from a particular location may be unable to provide manufacturers with required components.
One of the main reasons a business may be hesitant to work with multiple suppliers from various locations is that it makes supply chain management complex. With a cloud ERP system, however, a business can simplify the process and control and monitor suppliers from different locations, and a NetSuite partner in Sri Lanka can be of great use in this regard.
With an end to COVID-19 nowhere in sight, despite a push for a vaccine, it is safe to assume that safety regulations will play a crucial role in post-coronavirus manufacturing. The guidelines include social distancing, which result in capacity limitations and remote working arrangements. This adds a great strain to organisations, which have to plan and monitor shifts and create and maintain cases for employees who test positive for COVID-19.
With a cloud ERP system from a NetSuite partner in Singapore, a business in the manufacturing sector can easily follow safety guidelines and manage shifts so that social distancing is maintained within the premises.
A NetSuite partner in Sri Lanka can also provide a business with additional products, like a cloud CRM solution for effective customer relationship management or a financial management software.