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Transforming SME manufacturing
Don Valentine , Absoft ’ s Commercial Director and ADIMA ERP Lead ,
talks to us about transforming SME manufacturing and how the UK ’ s manufacturing sector has responded well to the challenges of recent years .
HE UK ’ S MANUFACTURING
T sector has responded well to the challenges of recent years – not least by bouncing back from the ‘ brutal ’ 10 % decline in output in 2020 . Investment in staff training , automation and technology , as well as investment in R & D , have created a sector that is now one of the largest in the world .
Yet too many of the UK ’ s SME manufacturing businesses still lag when it comes to end-to-end automation and technology adoption . Most have achieved pockets of innovation , both on the shop floor and within administrative functions such as finance and sales . Yet there is a continued disconnect between business areas that is compromising agility and responsiveness as inflationary pressures , as well as global supply chain disruption , start to take their toll .
Investing in ERP is the obvious step , providing a single , end-to-end solution that can transform productivity , cost control and competitive position – but how can SME manufacturers attain ERP quickly , effectively and at an affordable price point ? Don Valentine , Absoft ’ s Commercial Director and ADIMA ERP Lead , explains why a pre-configured ERP solution tailored to meet the specific functional requirements and cost-effectiveness needs of SMEs is changing the game .
Business-critical challenges
Soaring raw materials prices and global supply chain disruption are creating huge pressures for a manufacturing sector already reeling from COVID-19 lockdowns and an unexpected depletion of the labour force . With 85 % of UK manufacturers reporting rising purchase prices , businesses are wrestling with a new set of challenges . What proportion of these additional costs can be passed on to the customer ? How will delays in the supply chain affect the production process – and will that incur penalties from customers if products arrive after the promised date ? How will both delay and price rises affect customer demand ?
Traditional business decision-making based on accepted trends in raw materials pricing and customer demand have been thrown into total disarray . Companies cannot rely on last year ’ s data to make this year ’ s decisions – that will be a fast track to profit erosion and business loss . But without complete , end-
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SOARING RAW MATERIALS PRICES AND GLOBAL SUPPLY CHAIN DISRUPTION ARE CREATING HUGE PRESSURES FOR A MANUFACTURING SECTOR .
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