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Manufacturing Digital Transformation: What Is It?

Written by Annette Manias on Jul 21, 2022 11:17:12 AM

Here's why manufacturing digital transformation is an important change to face. 

Manufacturers face multiple uphill battles in the fight to succeed. Processes can always be faster. Prices can always be lower. Products can always be better. Much of this manufacturing "digital transformation" we see so much about is designed specifically to eliminate these concerns. Find out what it means to undergo a digital transformation in your manufacturing business.

Digital transformation in manufacturing – why invest?

It's typically less expensive to keep a current customer than to acquire a new one. These days, it's harder to keep customers happy because their expectations are higher than ever. They're not as loyal to a brand or provider anymore with competitors on the rise and prices on the decline.

What's worse is that these same customers aren't giving out second chances anymore. One bad experience has them looking for an alternative of equal quality. They may even be willing to pay a higher price if they are assured of a better experience.

The cost of doing nothing

There are costs involved in ignoring these challenges. Your company may find it hard to thrive in the future economy without automation, anytime access, and real-time visibility enabled by a digital transformation. The manufacturers you compete with have already started or completed their digital transformation. It's no longer an option to do nothing with customers demanding more functionality and omnichannel access. 

What can digital transformation do for you?

Successful manufacturers used technology to mitigate the effects of global upheaval. They used it to help with widespread issues like labor scarcity. It will become harder to respond to sudden changes in the market without modern technology to keep up and exceed modern expectations. You no longer have the luxury of time to leverage an opportunity or avoid an emerging issue.

The integrated, single source of truth enabled by a digital transformation make you much more responsive to the global environment changes. You may have experienced the scenario where competition came out of nowhere, seemingly overnight. They may be already taking business away from you. Perhaps you missed a great market opportunity because you didn't have enough inventory when demand suddenly ramped up. If this is your experience, it's time for a change.

Respond rather than react

Responding quickly is easy when you can see what’s really going on. For example, with Sage 100cloud, you get a production scheduling system that synchronizes inventory and purchasing so dates and deliveries are tracked easily. This level of granularity helps ensure your teams have the right materials at the right time to deliver orders on time.

Sage 100cloud for manufacturing is designed to eliminate purchasing and scheduling issues. Purchasing, inventory, and production workflows are all connected so you can plan more efficiently and accurately. You can analyze open sales orders, sales projections, and component requirements and compares them to your current inventory stock levels and open purchase orders. The Sage 100cloud's Material Requirements Planning (MRP) factors in lead times, build times, and supply and demand data. The system will alert you if you're going to be out of inventory for a required item so you face fewer stockouts.

Sage 100cloud is a great fit for the manufacturing, distribution and service industries. It’s a modern solution with more than 30 years of development based on customer feedback.  Sage 100cloud is the latest version of Sage 100 (previously known as MAS 90 and Sage 100 ERP). It's a great option for businesses that want or need an on-premise or hybrid solution. 

Enable omnichannel access for customers

Even before the pandemic, omnichannel shopping was skyrocketing. It was becoming common to see stores offering the ability to buy online and pick up in the store, or make returns in person when they shopped online. Customers also want support via their preferred channel, and they expect it to be consistent regardless of how they access their support requests.

It's clear the omnichannel experience will be difficult to support and impossible to scale as your sales grow if you're still relying on disconnected systems and spreadsheets. The tight integration between Sage 100cloud and your other enabling systems such as CRM and eCommerce platforms makes it easy to:

  • Provide support to your customers via phone or email and see all their requests and history
  • Enable your customers to access order status, tracking, and order history from their desktop or mobile device
  • Reorder based on previous purchases

Find a guide you can trust

Oasis has been around since before technology was a buzzword, assisting businesses in assessing, attaining and supporting business management software. Since 1991, Oasis Solutions has been serving businesses throughout North America with software consulting, development, training, and support. Oasis is an award-winning business management software partner for Sage software, NetSuite, and Adaptive Insights. 

Our team has more than 350 years of combined industry experience. Our software specialists offer expertise in accounting, human resource management, and custom software development. Unlock your company’s full potential and discover how to start improving your business today with your custom Oasis Analysis.

If you are planning to implement a new ERP or have recently implemented an ERP, contact us at Oasis Solutions to objectively evaluate the project. We will provide value by helping you achieve the success you expected and help you grow and thrive with your business. Let's Chat!

RELATED OASIS ARTICLES:

3 Ways You Can Avoid A “Nightmare” Software Implementation: Part I
7 Easy Steps to Success: ERP Implementation
Choosing Business Management Software 

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