Post-pandemic warehousing goes digital in 2021The global Covid-19 pandemic has altered how manufacturers view warehousing and distribution. Global lockdown caused demand and supply shock waves to ripple around the globe and shift at lightning speed as consumers were forced to swap in-store purchases to online shopping. © kzenon – 123RF.com In spite of the enduring crisis, a silver lining seems to be emerging. Recent research from PWC shows that, in spite of nearly 70% of businesses facing at least one major crisis in the five years preceding Covid-19, 42% reported that they have exited the crisis “in a better place.” Many manufacturers have shifted focus to a more direct-to-consumer (DTC) business model, or pivoted to new markets due to entire supply chains being disrupted. One thing is clear: the crisis has clearly shown where the gaps in manufacturing processes are, what needs improvement, and how manufacturers can gain a competitive advantage. The primary area of opportunity in this process: warehouse management. At a glance: ERP and warehousing in 2021
First, how Does ERP and digital transformation help warehousing?While digital transformation – specifically those technologies that give you clarity and live insight into your warehouse management and supply chain – is essential to gaining and maintaining the advantage now and after a disruption, it is important to note that digitisation is not just about patching on new apps and technology to old processes. Digitisation is fundamentally about reviewing and optimising existing business processes towards streamlined operations, and utilising technology to do so. Unoptimised warehouse processes and outdated systems will radically increase costs and lower profits. ERP - or Business Operating Systems (BOS) - gives everyone on and off the floor real-time access to data and information about what’s happening in your warehouse. This ensures:
These results are what make investing in BOS solutions worthwhile, and produce stronger and better organisations after soldiering through a crisis like Covid-19. How to embrace digitalisation in your warehouse todayIt is fast becoming the reality that technology no longer just improves efficiency, it is also a key driver to improve growth. According to a survey presented by the MHI Annual Industry Report, as many as 80% of respondents believe that the digital supply chain will be the dominant model within the next five years. For 20%, it is already the dominant model. If you’re waiting until the end of the Covid-disruption to start addressing gaps in your warehousing through digitisation and ERP, you’re already too late. Technology has indeed moved on. Here’s how you can too.
What does the future hold for ERP and warehousing?The migration to cloud BOS is certain to continue accelerating as more manufacturers realise how much easier it is to gain the velocity and agility needed to compete in today’s competitive marketplace. Additionally, there will be further expansion into BOS’s supply chain management capabilities to mitigate supply chain disruptions or any other changes in global economic conditions. As ABI Research Principal Analyst Michael Larner said, “Supply chain orchestration requires software to be more than a system of record, [but should also] provide risk analysis and run simulations, enabling manufacturers to understand and prepare for supply chain shocks.” In the immediate future, organisations who have already implemented cloud BOS will likely look for more ways to take full advantage of the modules and cloud capabilities. This would include facilitating remote work access for all staff - not just warehousing personnel - and increasing automation in workflows. Making use of integrated BOS or ERP solutions increases efficiency and saves time and money, putting manufacturers in a strong position to not only see it through after the pandemic, but to be one of the 42% of those that increase their revenue and advance their competitive advantage well into the future. About the authorAnton Oosthuizen is the Commercial Director of QuickEasy BOS, a South African-owned and operated Business Operating System (BOS) developer and installer for businesses nationwide. Serving clients for over 20 years across industries such as print and packaging, to engineering and manufacturing, it is Anton's desire to see businesses survive and thrive through the challenges of the pandemic backed by very smart, very practical technology. |