Supply chain management faces unprecedented challenges from global factors like the COVID-19 pandemic, geopolitical tensions, and resource shortages. In Australia, 88% of manufacturers report supply chain disruptions in 2022, leading to production delays, rising costs, and extended customer wait times across industries.

However, ERP systems, such as MYOB Acumatica Manufacturing (formerly MYOB Advanced Manufacturing), offer manufacturers the tools needed to overcome these challenges. In this blog, we explore how ERP can help manufacturers effectively manage supply chain disruptions.  

Understanding Global Supply Chain Management Disruptions

Supply chain management issues worsened significantly in 2022. According to the Ai Group CEO Survey for 2023, 79% of businesses reported supply chain disruptions, up from 65% in 2021. These disruptions were severe enough to interrupt normal operations for nearly a third of businesses. 

Manufacturing was the hardest-hit sector, with 88% of businesses affected, followed by construction at 72%. Even industries not typically associated with supply chain dependencies, like services, experienced significant disruptions. 

Pandemic-related port closures, global shipping delays, and container shortages exacerbated these issues. Shipping costs surged, with hiring a cargo container doubling or tripling at times.  
 
The impact on parts and raw material availability and rising transport costs forced manufacturers to rethink their supply chain management strategies. 

Here’s the additional section about how concerns over supply chain disruptions are driving investments in ERP systems, based on the provided resources: 

Supply Chain Disruptions Drive Investment in ERP Systems 

Supply chain management challenges are now a primary factor influencing business investment decisions. The Ai Group CEO Survey for 2023 shows supply chain disruptions are the top concern shaping investment plans. These disruptions rank equally with business expansion and innovation expectations. 

Manufacturers focus on internal measures to improve supply chain resilience by investing in automation and ERP systems. 

The MYOB Mid-Market Manufacturing Report highlights that 70% of Australian manufacturers invested in innovation last year. Of those, 35% focused on automation, and 35% on new management software. 

ERP systems like MYOB Acumatica Manufacturing streamline operations, enhance supply chain visibility, and mitigate future disruptions. 

Automation and digitisation drive the future of manufacturing. Manufacturers plan to integrate more technology into workflows to stay competitive. 

ERP systems are crucial in this shift. They help businesses manage inventory, procurement, production scheduling, and supplier communication.

The Role of ERP in Supply Chain Management 

An ERP system is vital for optimising supply chain management, offering real-time data and the ability to adapt quickly to disruptions. Here’s how ERP systems, like MYOB Acumatica Manufacturing, can help manufacturers mitigate these challenges: 

Real-Time Visibility and Decision Making

ERP systems provide a central hub for supply chain management. MYOB Acumatica Manufacturing delivers real-time data that allows manufacturers to make informed decisions on adjusting production schedules, reallocating resources, and maintaining inventory levels . This kind of visibility is essential when dealing with unpredictable supply chain disruptions. 

Optimised Inventory Management 

Efficient inventory management is a cornerstone of effective supply chain management. With MYOB Acumatica’s advanced inventory tools, manufacturers can track stock levels in real-time, avoid overstocking, and prevent shortages . This ensures the right materials are available at the right time, helping to minimise the impact of delays in the supply chain. 

Improved Supplier Collaboration 

Collaboration with suppliers is crucial during supply chain disruptions. ERP systems like MYOB Acumatica Manufacturing automate supplier communication, improving procurement processes and helping manufacturers adjust their strategies in real-time . This level of collaboration helps mitigate delays and ensures a steady flow of essential materials. 

Why MYOB Acumatica Manufacturing Stands Out  

Not all ERP systems are created equal, and MYOB Acumatica Manufacturing stands out in addressing supply chain management issues effectively. 

Advanced Features for Manufacturers

MYOB Acumatica’s Material Requirements Planning (MRP) and Capable to Promise (CTP) features enable manufacturers to accurately forecast material needs and set reliable delivery dates . These features are invaluable for manufacturers facing unpredictable supply chain disruptions, as they allow for precise planning and optimisation. 

How MYOB Acumatica Supports Supply Chain Management

MYOB Acumatica Manufacturing goes beyond simple automation. By providing real-time insights, it allows manufacturers to reduce costs, improve operational efficiency, and respond swiftly to supply chain fluctuations . Its automation capabilities streamline workflows, making it easier to maintain flexibility in uncertain global markets. 

Conclusion 

Global supply chain management disruptions are a persistent challenge for manufacturers, but ERP systems like MYOB Acumatica Manufacturing offer a comprehensive solution. With real-time data, optimised inventory management, and improved supplier collaboration, MYOB Acumatica helps manufacturers maintain resilience and flexibility, even in volatile market conditions  

To learn more about how MYOB Acumatica Manufacturing can transform your supply chain management, contact AlphaBiz Solutions today for a free demo.