Nine out of ten Canadian manufacturers are struggling with supply chain disruptions, according to a recent report. More than half reported it’s having “a major or severe” effect on their business. The report estimates supply chain disruptions have cost manufacturers more than $10 billion in sales in addition to approximately $1 billion in increased costs.
With disruptions likely to continue through 2023 and beyond, manufacturers need long-term logistics strategies that can reduce costs, improve efficiencies, and maintain fulfillment timelines.
New Warehousing Strategies
Due to their bulky, non-standard sizes, furniture manufacturers were particularly impacted by recent supply chain disruptions. As a solution, they set up facilities closer to home to minimize shipping costs and delays.
Decentralized warehouse facilities in strategic locations helped furniture manufacturers achieve faster delivery times. Expanding warehouses can also make your supply chain more agile.
In Canada, companies are taking concrete steps to buy closer to home or produce in-house. Experts are cautiously optimistic this could reinvigorate Canada’s domestic manufacturing sector, which has been steadily declining since the late 1990s.
ERPs and Supply Chain Management
Enterprise resource planning (ERP) software provides a holistic view of all business operations, enabling advanced logistics strategies.
Successful logistics strategies hinge on accurate, timely information. ERP software can give you real-time reports on your inventory levels, the health of your supply chain, purchasing and production data, and more.
Keeping track of your inventory levels manually is a waste of time. ERP software can automatically place orders to vendors when inventory levels drop below an established level. Now you’re free to focus on other areas of opportunity.
Relying on spreadsheets makes sharing information inefficient. Too often spreadsheets create silos, inaccuracies, and duplications, making it harder for manufacturers to gather, sort, and analyze data. ERP software streamlines data, improving teamwork.
With so many disruptions, waste, mistakes, and fraud in supply chains are even costlier to manufacturers. ERP software will give you greater visibility into your inventory, reconciling the physical count with what’s showing up in the software.
ERP systems can also monitor vendor performance. You can easily review vendor cycle times and error rates, giving you invaluable insights into your vendor relationships.
It shouldn’t come as a surprise that experts anticipate manufacturers will be spending $14 billion on ERP by 2024.
Get Help With Your Inventory
Gaining control of your inventory will help optimize your logistics strategies. Marketsupport offers sophisticated solutions for tracking your inventory in-store to ensure accuracy. Whenever you need qualified professionals, Marketsupport is ready.
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