High-tech manufacturers on the cutting edge of innovation unfortunately often face cutting-edge challenges. From operations to financials, and regulatory compliance, overcoming these challenges can be complex and challenging endeavors.
As the 2nd largest manufacturing subsector in the U.S., high-tech manufacturing drives the national economy and continues to expand every year. The challenges manufacturers face will likewise continue to grow and develop, leaving companies with little choice but to think strategically, plan ahead, and secure vital resources before they are needed.
The most common challenges facing high-tech manufacturers today run the gamut of the manufacturing spectrum. Modern challenges require modern solutions – and in this case, companies can solve challenges facing most high-tech manufacturers with the help of quality Enterprise Resource Planning (ERP) solutions.
With solutions like Sage 100 for Manufacturing Businesses, high-tech manufacturers can overcome the difficulties of their industries, while optimizing their systems to support growth and accommodate economic instability.
Here are some of the most common challenges facing high-tech manufacturers that excellence in ERP can help overcome:
Mergers and Acquisitions – Combining business enterprises into a single synergized entity is a proven strategy in the high-tech manufacturing sector, producing companies greatly exceeding the sum of their parts. But, organizing and managing M&A activities is an incredibly complex endeavor that requires accurate company data, various operational reporting from multiple business perspectives, and careful department integration management. ERP systems make these processes more manageable by providing the analytical, financial, and functional applications company leaders need to meet stakeholder demands and make business integrations as smooth as possible.
Product Rollouts – Introducing new products into a target market always carries inherent risks. With an advanced ERP solution, high-tech manufacturers gain access to valuable market insights that can drastically improve forecasting models. In addition, ERP can help streamline new production processes, ensuring that new product rollouts meet deadlines without affecting other operational areas.
Data Security – It may seem alarmist to say that cybercriminals are coming for your data, but they are coming for your data. It’s no secret that cybercrime exploded during 2020, and continues to be a threat throughout 2021. Keeping valuable company data secure should be a top priority for all businesses but especially true for high-tech manufacturing. In addition to the increased danger from ransomware attacks that every company currently faces, high-tech manufacturers are the preferred target for foreign economic espionage. While few companies want to think of being victims of an espionage attack, the FBI estimates that billions are lost annually to foreign competitors who target flourishing high-tech manufacturers in the U.S. Secure ERP solutions for high-tech manufacturers should be part of every comprehensive digital security strategy.
Supply Chain Performance – Effective supply chain management is foundational for successful manufacturers and often involves complex intersections of goods and services during the procurement process. ERP solutions can optimize these processes through advanced automation, monitoring critical logistic data and various procurement costs, and help business leaders make effective supply chain management decisions.
Importing/Exporting and Regulatory Compliance – As high-tech manufacturing often includes the import and export of various goods from across the globe, it is absolutely critical that a manufacturer successfully meets the necessary regulatory requirements of the areas they are importing from or exporting to. These regulations can be highly variable, differing by industry, economic sector, and target countries. With ERP solutions, high-tech manufacturers can stay up-to-date on all applicable regulatory requirements, automating company systems to ensure 100% compliance on all end-to-end activities in their industry, including the regulations governing importing and exporting through target countries.
Manufacturing Systems Integration – One of the most valuable benefits provided by comprehensive ERP solutions is the integration of disparate organizational systems into one homogenous solution. Not only does this streamline all end-to-end business processes, but it also helps ensure the accuracy of data across company departments.
Distribution Complexities – Managing distribution complexities can present a significant challenge for high-tech manufacturers, involving the accurate monitoring of varying tier groups across varying distribution areas. ERP solutions make this activity substantially easier by providing automated applications that both monitor and report on distribution metrics.
High-tech manufacturers that have not already integrated a comprehensive ERP solution into their operations are at a disadvantage moving forward. Not only do they face the same challenges that all manufacturers face, but they are also facing them alone.
From enhanced security to streamlined operations and excellence in accounting, high-tech manufacturers partnering with top-quality ERP solutions are poised to meet the challenges ahead and successfully overcome what lies ahead.