IT Brief Australia - Technology news for CIOs & IT decision-makers
Story image

How Australian manufacturers use ERP to be more competitive

Fri, 30th Aug 2024

Despite ongoing scepticism surrounding the "Future Made in Australia" initiative, many Australian manufacturers are proving that local production's future is viable and can thrive with the right strategies. Rather than focusing on limitations, forward-thinking manufacturers have prioritised their competitiveness and productivity using ERP systems.

ERP helps companies streamline operations, optimise resources and build resilience, allowing them to stand out in an increasingly competitive global market. It's time to reframe the conversation, not about whether Australian manufacturing can succeed but how it is already driving success through innovation and digital transformation.

How ERP can increase competitiveness
In today's market, competition is fierce. Global supply chains, shifting consumer demands, and the rise of new technologies force manufacturers to adapt quickly or risk being left behind. The pressure to compete globally is even more pronounced for Australian manufacturers due to the country's distance from major international markets and the higher labour and production costs.

ERP systems help with this by integrating core business processes such as procurement, production, inventory management, and financial reporting into a single platform. By centralising data and processes, ERP systems enable manufacturers to streamline operations, reduce waste, and make data-driven decisions.

For example, an Australian manufacturer leveraging an ERP system can gain real-time visibility into their supply chain, identifying bottlenecks before they escalate into costly delays. Similarly, manufacturers can optimise production schedules based on demand forecasts, ensuring that resources are used efficiently while minimising downtime. The result? Enhanced productivity, reduced costs, and a stronger domestic and international competitive position.

ERP and the Future Made in Australia initiative
One criticism of the "Future Made in Australia" initiative is that it focuses too heavily on bringing all manufacturing back to Australian soil, ignoring the realities of global trade and Australia's position. Critics argue that Australia should focus more on what it does best, namely, innovation, high-value production and specialised manufacturing, rather than trying to compete with low-cost production hubs in other parts of the world.

ERP systems like SYSPRO support this strategic shift by helping Australian manufacturers focus on value-added processes rather than volume-based production. With ERP, companies can fine-tune their operations to deliver high-quality, customised products that meet the specific needs of manufacturers. By excelling in these specialised areas, Australian manufacturers can carve out a competitive advantage that is less reliant on economies of scale and more focused on innovation and quality.

Additionally, our ERP system helps manufacturers navigate the complex regulatory environment in Australia. Compliance with local and international standards is critical for exporting goods, and our ERP platform allows companies to manage regulatory requirements efficiently. This compliance and ERP-driven operational efficiency empowers Australian manufacturers to compete in global markets without sacrificing quality or safety standards.

Building resilience with ERP
Resilience is another key benefit of ERP system like ours for Australian manufacturers. The pandemic, natural disasters and geopolitical tensions have all highlighted the vulnerability of global supply chains. Manufacturers that rely on a single supplier or region for critical components can face severe disruptions when unexpected events occur.

Our ERP system enables manufacturers to build more resilient supply chains by providing the tools needed to diversify sourcing, manage inventory effectively and respond to changes in demand more dynamically. For example, if a supplier cannot deliver materials due to unforeseen circumstances, our ERP system can quickly identify alternative suppliers, ensuring that production continues with minimal disruption.

Additionally, SYSPRO ERP offers real-time insights into inventory levels, helping manufacturers avoid overstocking or understocking materials. This flexibility allows companies to respond more nimbly to market changes, whether a sudden spike in demand or a disruption in supply.

Resilience isn't just about weathering short-term disruptions; it's also about building a sustainable business model for the future. Our ERP system allows Australian manufacturers to innovate continuously by integrating new technologies such as the Internet of Things (IoT), artificial intelligence (AI), and machine learning into their operations. This integration enables predictive maintenance, automated production processes and data-driven decision-making, ensuring Australian manufacturers remain competitive in the face of future challenges.

Case Studies: Australian Manufacturing Success with ERP
Rae-Line is an Australian market leader in designing and manufacturing commercial upholstery, sports and safety padding solutions. After evaluating six ERP suppliers before selecting SYSPRO, discover more about how SYSPRO has supported Rae-line's 60 per cent growth in the past two years, coupled with a 20 per cent improvement in quality and time, resulting in fewer mistakes and reworks.

AF Gason, the innovative designer and manufacturer of world-class broadacre farm machinery, wood-heating products, and industrial solutions, has reported a substantial increase in operational effectiveness after deploying SYSPRO enterprise software.

B&R Enclosures specialises in sheet metal fabrication, including electrical enclosures for domestic metering applications. Founded in 1955, B&R is Australia's largest manufacturer and designer of electrical enclosures, switchboard building systems, server racks, and cabinets and has more than 300 employees. The company has experienced significant growth and increased efficiencies since implementing SYSPRO ERP.

ERP is the key to a competitive future
As the debate surrounding the "Future Made in Australia" initiative continues, one thing is clear: Australian manufacturers must prioritise competitiveness and productivity to thrive in a global market. Specialist ERP systems for the manufacturing sector like ours offer the tools needed to streamline operations, enhance productivity and build resilience in the face of global challenges.

By investing in SYSPRO ERP technology, Australian manufacturers can shift the conversation away from whether they can compete and focus instead on how they are driving success through innovation, efficiency and resilience. Investing a SYSPRO ERP system is not just about keeping pace with global competitors; it is about leading the way in high-value, high-quality manufacturing that secures Australia's place in the future of global production.

Follow us on:
Follow us on LinkedIn Follow us on X
Share on:
Share on LinkedIn Share on X