March 8th 2023 11:00:00 AM
Production Management Software Tool Manufacturing Industry Needs in 2020
January 21st 2020 16:00:00 PM
The year 2019 began with promise for manufacturers in the US and other parts of the world. Many of them were riding a wave of growth and expected it to continue. Recently, though, that growth has slowed down as part of a global trend. Manufacturers are now challenged to use the tools at their disposal, including production management software, to stay nimble in the current business climate.
Are you convinced production management software is the right option for your manufacturing business in 2020? Reach out and contact us online or call (330) 645-9959 to arrange a consultation with a Scanco Solutions Expert.
US Manufacturers Seeing Slight Downturn in Q3
According to Deloitte’s 2020 Manufacturing Industry Outlook, US manufacturers were largely shielded from this development; they enjoyed positive growth through the first two quarters of the year. It wasn’t until Q3 that they saw growth start to slide into negative territory. With this downturn, Deloitte has adjusted its economic projections for GDP growth levels to 2.7% for 2019 and 1.3% for 2020. The original projections were 3.7% for 2019 and 2.0% for 2020.
Ongoing issues such as the tight labor market, which is making it difficult for manufacturers to fill available positions, affect the sector. The uncertainty surrounding trade tariffs is another factor creating an environment of uncertainty for manufacturers. Despite these challenges, the majority of manufacturers who participated in the Deloitte survey reported feeling optimistic (67.9%), though the number is significantly lower than in the 2018 report when 93.9% of respondents said they felt positive.
Production Management Software Tracks Scheduling, Costs
There are a lot of variables outside your business you can’t control. Deciding to install production management software is something within your control. It’s a powerful tool which can help you keep track of existing inventory as well as the quantities required to meet the demand for orders.
Since the software allows you to keep track of your entire manufacturing process in real-time, managing costs becomes a much more straightforward process. Rather than getting bogged down in working with pen and paper while trying to keep track of inventory levels (and waiting for the spreadsheet to be updated in the system by a data entry operator), all authorized users on your team have access to the data immediately. Scheduling for production runs becomes much easier when your team knows precisely what resources they have to work with and when new stock needs to be ordered.
Since tariffs are a special concern to manufacturers for 2020, it’s more important than ever your procurement team considers suppliers from jurisdictions where they don’t apply. Production management software provides a detailed breakdown of costs and will help you decide whether you need to make a change, or if you can continue with your current supplier (assuming you are otherwise satisfied with the relationship).
Sage Production Management Gives You the Tools You Need for 2020
Sage Production Management has all the tools you need to greet 2020 with confidence. It gives you the ability to easily track costs, including labor, overhead, and direct accounts payable. Sage Production Management gives you the sales data available with Sage 100 and combines it with manufacturing process data. Your team will be alerted when stock is low and new orders need to be placed.
Are you ready to move forward with production management software for your business in 2020? Taking the next step is easy. Contact us online or call (330) 645-9959 to arrange a consultation with a Scanco Solutions Expert.