How ERP Can Help Navigate the Manufacturing Materials Shortage

Months have turned into years as manufacturing materials shortages and a massive supply chain disruption continue to plague manufacturers and consumers alike. 

The frustration is real, but navigating these challenges, which include rising prices and decreased availability, is possible with a manufacturing-specific software like Yfos Cloud ERP.

Rising Prices and Decreased Availability
Near the end of 2021, Reuters reported that U.S. manufacturing activity had slowed. This is not surprising, considering the seemingly endless amount of time manufacturers have spent waiting for raw materials to arrive from supply chains already stretched to their limit.

The sought-after materials—ranging from wood, steel, and plastic to the ever-needed semiconductor chips—are necessary components of goods for which consumers are clamoring, such as cars, electrical equipment, and appliances. This manufacturing materials shortage means decreased availability of needed items and increased cost to manufacturers, who are then forced to pass that cost on to the consumers.

How Cloud ERP Can Help
Fixing supply chain disruptions and their consequences is not within manufacturers’ power, but they can alleviate some of the problems with the right cloud ERP solution.

ERP stands for “enterprise resource planning.” Organizations of any size can use an ERP system to bring their disparate applications under one umbrella. Data from all departments is fed into the centralized solution, where it is then synchronized so that employees, based on their permissions, can view updated, critical business information in real-time. When the ERP solution is cloud-based, this real-time data can be accessed 24/7 from any location, providing a 360-degree view of the company.

Such an all-encompassing view allows manufacturers to scrutinize every aspect of their businesses, including supply chain channels. Instead of responding late to pain generators, like backlogged orders or missed shipments. This can help identify and mitigate disruptions before they occur by monitoring the KPIs that a solution like Yfos Cloud ERP system provides.

ERP solutions also increase efficiency—meaning that, where possible, manufacturers can reduce the number of materials used per product, decreasing their own demand for supplies and ultimately relieving shortages.

The Importance of a Manufacturing-Specific ERP

The right manufacturing-specific such as Yfos Cloud ERP solution should provide integrated applications for production, estimating, engineering, material planning, scheduling, and product configuration—for both discrete and batch process production. Having a single solution with these connected applications (alongside document management, CRM, project accounting, commerce, expense management, payroll, and service management functionalities) gives manufacturers the reports, analytics, and dashboards they need to succeed, even as they face the continuing manufacturing materials shortage and major supply chain disruptions.

How Yfos Cloud ERP Can Help
To find a system that encompasses all the aforementioned capabilities, look no further than Yfos Cloud ERP solution. Yfos can help any manufacturer weather the storm caused by the manufacturing materials shortage and supply chain disruptions.

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