Navigating Manufacturing Materials Shortages and Supply Chain Disruptions with ERP

Manufacturing Materials Shortages

In the early days of the pandemic, few, if any, business leaders could have predicted the impacts that these unprecedented events would have on the global supply chain. As supply chain disruptions first began to manifest, many hoped that these materials shortages and bottlenecks would be short-lived. 

Unfortunately, the shortages and supply chain mayhem caused by the pandemic have lasted years, not months. These challenges were magnified by international conflicts, resurgent waves of infections, and historic surges in demand for shipping services. 

Manufacturers, shippers, and other links in the supply chain continue to face decreased availability and rising costs. While these challenges have the potential to threaten business continuity and undermine organizational growth, there is a way to successfully navigate them. To do so, organizations will need to implement cloud-based ERP software, such as Acumatica

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The Challenges

The most significant challenge facing manufacturers is a lack of availability. Manufacturers' production levels have been decimated by an inability to source raw materials. They have struggled to source everything from wood to semiconductor chips.

The semiconductor chip shortage has been particularly harmful to production levels. According to J.P. Morgan, the end of the chip shortage should be imminent. However, manufacturers should not breathe a sigh of relief just yet.

In addition to facing a shortage of materials, manufacturers are also contending with a lack of carrier availability as well. In response to the initial wave of supply chain disruptions, many carriers scaled back operations. This cost-saving move was necessary in order for these businesses to stay afloat during the pandemic.

While the demand for shipping services has mostly rebounded, capacity remains diminished. Although carriers are working to restore pre-pandemic capacity, doing so could take months or even years.

Naturally, the drop in availability and rise in demand caused prices to surge. Manufacturers’ woes were compounded as both the materials they are sourcing and the shipping services they use to send out their finished products have risen significantly. 

In order to overcome this perfect storm of challenges, manufacturers must increase supply chain visibility and optimize efficiency. By doing so, they can gain some breathing room in their razor-thin profit margins, minimize the risk of prolonged disruptions, and move closer toward some sense of normalcy.

The Answer: Cloud ERP Software

The interconnected challenges facing manufacturers are complex and nuanced. In light of that, it is impossible to resolve all of them via a single solution. However, a powerful cloud ERP software can remedy many of the impacts of materials shortages and help manufacturers increase their overall resilience to future challenges.

Enterprise resource planning software, or ERP, serves many purposes. Chiefly, it allows manufacturers to unify all of their disjointed software solutions onto a single interface. The ERP software solution compiles data from these disparate technologies, structures it, and allows employees to interact with it in a meaningful way.

With ERP software, authorized team members can conduct advanced analysis of this newly structured data. They can generate custom reports that provide actionable supply chain intelligence. These reports reveal potential weak points so that organizations can proactively address supply chain shortcomings. 

A cloud-based ERP solution’s true value comes from the timeliness of the data. Such a solution gives staff access to real-time information so that they can monitor the supply chain 24/7. This allows them to identify concerning trends and quickly pivot in order to minimize the impact of disruptive events.

Leverage Acumatica Manufacturing Edition

While ERP software represents a clear pathway forward for manufacturers, not all solutions are created equal. Acumatica ERP software represents the ideal enterprise resource planning solution for manufacturers. It has a suite of tools and reporting capabilities that are specifically designed for users within the manufacturing space.

However, even a solution as powerful and user-friendly as Acumatica ERP must be strategically implemented and deployed. Therefore, your organization should partner with Cloud 9 ERP Solutions, a Gold Certified Acumatica Partner.

Cloud 9 ERP Solutions will expertly manage every facet of the deployment process. We will work hand-in-hand with your staff to ensure a seamless transition to this powerful technology suite.

Schedule a demo today and take your first step to become a more resilient and efficient manufacturer. 

Additional Manufacturing Resources

How to Select the Right ERP Software in the Manufacturing Industry

5 Trends Shaping the Manufacturing Industry Right Now

How Barcode Scanning in Manufacturing Improves Shop Operations

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