SYSPRO survey reveals manufacturing sector's strategic shift amid crises

SYSPRO, a global ERP vendor, has issued its third annual Global CFO Survey, revealing a strategic shift within the manufacturing sector towards bolstering operational resilience and efficiency. These findings have emerged as a response to a range of unprecedented macroeconomic shocks that the sector has faced over the recent past.

The survey, which fielded responses from July to September 2023, focused on CFO sentiment within various manufacturing arenas, including the Americas, Asia Pacific (APAC), Europe, the Middle East and Africa (EMEA), Australia, and New Zealand. In an attempt to gain comprehensive insights, financial leaders from both SMEs and larger corporations were incorporated.

A prominent disclosure of the study is the belief shared among manufacturing CFOs that we are currently in a state of suspension between crises. This viewpoint has led to an emerging trend of a 'Hybrid CFO', incorporating new priorities into conventional CFO roles. The survey also indicated a significant shift toward operational focus in response to a series of external challenges, such as post-pandemic supply chain disruptions, escalating material costs, inflation, and environmental obstacles.

The research underscores that CFOs are progressively expected to operationalise digital transformation (52 per cent), further implicating a greater involvement in operational areas. With this growing expectation, the CFO's evolving role now merges strategic business knowledge and conventional financial expertise, deemed essential for retaining a competitive edge. 80 per cent of the survey respondents agreed that strategic business knowledge stands as a pivotal attribute for modern CFOs in maintaining their business competitiveness.

Despite the prevailing economic uncertainties, the survey shows a leaning towards fiscal conservatism along with an enduring commitment to digital transformation. This combined approach aims to manage risks while encouraging sustainable business growth. 63 percent have adopted a more conservative business strategy in light of the global economic status, while 57 percent anticipate returning to profitability by the year's end. Furthermore, an additional 24 percent predict reaching profitability midway through 2024.

Despite prevailing challenges, maintaining a continued investment in innovation emerged as a priority, focusing on new equipment, inventory, expansion, and digital transformation. Furthermore, 51 per cent of respondents are prioritising investment in business intelligence to augment clarity and information transparency across their businesses, aiding more informed decision-making. A clear preference was also shown towards investing in ERP as a means of delivering operational efficiencies.

Johan Conradie, Global Chief Financial Officer at SYSPRO, commented on the survey's fin: "ng, "Our global CFO Survey highlights the adaptive strategies and priorities of manufacturing CFOs in navigating complex and volatile economic landscapes. The emergence of the Hybrid CFO marks a pivotal shift towards a more integrated, strategic role, with a clear focus on leveraging digital transformation to secure operational resilience and drive sustainable growth."

Conradie raised an interesting point for conversation, asking whether the Hybrid CFO in manufacturing has "the skills, data and tools required to provide the same degree of insight into their organisation's operations as they have into their finances."