{"id":9567,"date":"2020-10-29T07:15:06","date_gmt":"2020-10-29T07:15:06","guid":{"rendered":"https:\/\/eu.syspro.com\/blog\/3-emerging-trends-as-manufacturers-shift-in-response-to-the-pandemic\/"},"modified":"2021-03-04T14:51:16","modified_gmt":"2021-03-04T14:51:16","slug":"3-emerging-trends-as-manufacturers-shift-in-response-to-the-pandemic","status":"publish","type":"post","link":"https:\/\/eu.syspro.com\/blog\/owning-or-running-erp\/3-emerging-trends-as-manufacturers-shift-in-response-to-the-pandemic\/","title":{"rendered":"3 Emerging Trends as Manufacturers Shift in Response to the Pandemic"},"content":{"rendered":"Reading Time: <\/span> 3<\/span> minutes<\/span><\/span>

Global manufacturing and distribution sectors are set to shift. Since the start of the pandemic, industries have had to face increasing pressures, from supply chain disruptions to a shortage of business system accessibility and a lack of worker availability. While the ongoing struggle for raw materials continued under national lockdowns, the pandemic also acted as a catalyst for Industry reinvention. A good example of this took place in South Africa. During the national lockdown, consumers became increasingly reluctant to go into stores and instead opted to shop online. In order to capitalize on this opportunity, a local beverage wholesaler sold its products directly to customers through a third-party e-commerce website. To have real-time visibility of their stock availability, the business integrated an API into their existing ERP system.<\/p>\n

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As you can see, many businesses thrived through innovation to meet the demands of the \u2018abnormal\u2019<\/strong>, but we wanted to really understand the longer-term impact of the pandemic. An online survey was therefore shared with industry professionals of different managerial levels within each of our key regions. This included the United States, Canada, EMEA, and APAC. The survey was conducted in August 2020 and was directed to both office workers as well as operational workers in departments including operations, the office of finance, IT, logistics, marketing, and sales. Here are some of the key insights and emerging trends:<\/p>\n

1. Manufacturers and distributors are making provision for the remote workforce<\/strong><\/h2>\n

Unsurprisingly, our survey revealed to us that 37%<\/strong> of companies were unable to provide the remote work capabilities to employees that were required. This included back-office positions such as administrative functions as well as front end operations. This indicates that many manufacturers and distributors are still heavily reliant on manual inspections, manual recording, and disconnected processes.<\/p>\n

Moving forward, 73%<\/strong> of businesses stated they would need to invest in capabilities to facilitate remote working.\u00a0\u00a0And while 45% of businesses have realized that they could lose talent in the future if they do not embrace remote working moving forward, the onus will be on leaders to ensure that the all-new and \u2018improved\u2019 remote workforce have the necessary skills to utilize the cloud and other collaboration tools to the fullest.<\/p>\n

2. The rise of new manufacturing hubs and the re-shoring of supply chains<\/strong><\/h2>\n

Rewind a few months back, and\u00a0you will find that\u00a0most\u00a0supply chains\u00a0were\u00a0heavily integrated and increasingly reliant on foreign raw material. There were a number of benefits to looking offshore \u2013 including cost\u00a0reductions and efficiency. This of course often came with the price of quality and control.\u00a0As soon as global lockdowns resulted in supply chain disruptions,\u00a0businesses needed a new plan.<\/p>\n

Our survey revealed that 42%<\/strong> of businesses will near-shore or re-shore manufacturing operations. This reconfiguration of supply chains has both an impact on localized requirements as well as dual sourcing policies for supply certainty. Some of the new manufacturing hubs that are rising are the Philippines, Hungary, Costa Rica, and even Columbia.<\/p>\n

3. A renewed interest in Industry 4.0<\/strong><\/h2>\n

The pandemic has proven that manual\u00a0and disconnected processes can spell the end of business\u00a0operations.\u00a0A\u00a0report<\/a> by\u00a0Mckinsey\u00a0echoes\u00a0this by stating\u00a0that the role of Industry 4.0 becomes even more critical\u00a0on the backdrop of a crisis such as COVID-19. Players utilizing digital solutions are better positioned to weather the storm, having moved faster and further than their peers during the crisis. While manufacturers and distributors have been\u00a0slow to adopt the cloud due to a number of reasons,<\/strong><\/a> some due to the interconnectivity required to operations directly on the shop floor,\u00a0and others due to the regulatory requirements placed on their industry, things are now changing.\u00a0In fact, because so many businesses still rely on manual processes, 29% of businesses stated that they would be pursuing cloud-based business systems\u00a0moving forward.<\/p>\n

Emerging trends shaping the future of the factory<\/strong><\/h2>\n

With the advancement of the remote workforce, the global appetite for re-shoring, and a renewed interest in cloud technologies, the world is now entering an inflection point.\u00a0\u00a0We are witnessing the rollout of the \u2018factory of the future\u2019. Technologies that will shape this shift will be the uptake and adoption of business process automation, collaboration portals, and messaging gateways.<\/p>\n

Read more about SYSPRO\u2019s study into how manufacturers handled the shift during the pandemic.<\/strong><\/h3>\n

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