In today’s fast-paced business landscape, organizations constantly search for ways to optimize their operations and gain a competitive advantage. One particular area that often presents challenges is supply chain management. The smooth flow of goods and information from suppliers to customers is critical for the success of any company. This is where the power of Enterprise Resource Planning (ERP) comes into play. ERP systems provide a comprehensive solution for streamlining supply chain management by integrating various processes and departments into one centralized platform. From procurement and inventory management to production planning and customer relationship management, ERP empowers businesses to make informed decisions, cut costs, and enhance overall efficiency. In this article, we will explore the potential of ERP in revolutionizing supply chain management and how it can help businesses stay ahead in today’s competitive marketplace.

What is ERP?

At its core, ERP is a software system that integrates various processes and departments into one centralized platform. It allows companies to manage and automate a wide range of business activities, including finance, human resources, procurement, inventory management, production planning, and customer relationship management. By providing a holistic view of the organization’s operations, ERP enables businesses to make informed decisions, reduce costs, and improve overall efficiency.

Benefits of Using ERP in Supply Chain Management

Implementing an ERP system for supply chain management offers numerous benefits. First, it enables real-time visibility into the entire supply chain. With a single source of truth, businesses can track inventory levels, monitor production processes, and identify potential bottlenecks or delays. This visibility allows for better planning and forecasting, ensuring the right products are available at the right time.

Secondly, ERP systems facilitate better collaboration and communication between different departments and stakeholders involved in the supply chain. By breaking down silos and enabling seamless information sharing, teams can work together more efficiently, resulting in faster decision-making and improved customer service.

Additionally, ERP streamlines critical supply chain processes such as procurement and inventory management. With automated workflows and integrated tools, businesses can optimize their purchasing activities, reduce lead times, and minimize stockouts or excess inventory. This not only saves costs but also improves overall supply chain performance.

Streamlining the Supply Chain with ERP

ERP systems play a vital role in streamlining the supply chain. One way they achieve this is through demand planning and forecasting. By analyzing historical data and market trends, ERP software can accurately predict demand and help businesses align their production and inventory levels accordingly. This proactive approach ensures that products are available when customers need them, reducing lead times and enhancing customer satisfaction.

Another key aspect of supply chain management that ERP addresses is order fulfillment. With integrated order management functionality, businesses can automate and streamline the order-to-cash process. ERP systems ensure smooth and efficient order fulfillment, from capturing customer orders to managing shipping and invoicing, reducing errors and delays.

Furthermore, ERP allows for effective inventory management. By providing real-time visibility into inventory levels, ERP systems help businesses optimize their stock levels, minimize carrying costs, and prevent stockouts or overstocking. This level of control ensures that the right products are available at the right time, reducing lead times and improving customer satisfaction.

Key Features of ERP for Supply Chain Management

To effectively streamline supply chain management, ERP systems offer a range of key features. These include:

Demand Planning and Forecasting

ERP software leverages historical data and market insights to accurately predict demand, enabling businesses to optimize their production and inventory levels.

Order Management

Integrated order management functionality allows businesses to automate and streamline the entire order-to-cash process, reducing errors and delays.

Inventory Management

Real-time visibility into inventory levels helps businesses optimize stock levels, minimize carrying costs, and prevent stockouts or overstocking.

Supplier Management

ERP systems enable businesses to effectively manage their supplier relationships, ensuring timely deliveries and maintaining high product quality.

Warehouse Management

ERP systems improve efficiency, reduce errors, and optimize storage and picking processes by automating warehouse operations.

Transportation Management

Integrated transportation management functionality allows businesses to optimize shipping routes, reduce costs, and improve delivery times.

Implementing ERP for Supply Chain Management

Implementing an ERP system for supply chain management is a complex undertaking that requires careful planning and execution. It involves several steps, including:

  1. Needs Assessment: Identify the specific requirements and goals of the organization to determine the right ERP solution.
  2. Vendor Selection: Research and evaluate different ERP vendors based on factors such as functionality, scalability, ease of use, and customer support.
  3. System Customization: Customize the ERP system to align with the organization’s unique supply chain processes and requirements.
  4. Data Migration: Transfer existing data from legacy systems to the new ERP system, ensuring data integrity and accuracy.
  5. User Training: Provide comprehensive training to employees to ensure they can effectively use and maximize the benefits of the ERP system.
  6. Testing and Deployment: Thoroughly test the ERP system before deploying it across the organization, ensuring a smooth transition and minimal disruption to operations.

Challenges and Considerations When Implementing ERP

While implementing an ERP system can bring significant benefits, it also comes with its fair share of challenges. Some common challenges and considerations include:

  • Cost: ERP implementation can be expensive, including upfront costs for software licenses, hardware infrastructure, customization, and ongoing maintenance and support.
  • Change Management: Introducing a new system can disrupt existing workflows and require employees to adapt to new processes. Effective change management strategies are essential to ensure a smooth transition.
  • Data Integrity: Migrating data from legacy systems to the new ERP system requires careful planning to ensure data integrity and accuracy.
  • Scalability: As businesses grow and evolve, the ERP system needs to be scalable to accommodate increased data volumes, users, and functionality.
  • User Adoption: Ensuring user buy-in and providing comprehensive training is crucial for successful implementation.

Best Practices for Optimizing Supply Chain Management with ERP

To maximize the benefits of ERP in supply chain management, businesses should follow these best practices:

  1. Define clear goals and objectives: Clearly define the desired outcomes and objectives of implementing an ERP system for supply chain management.
  2. Involve key stakeholders: Involve key stakeholders from different departments and levels of the organization to ensure their needs and requirements are considered throughout the implementation process.
  3. Ensure data accuracy and integrity: Invest time and resources in data cleansing and migration to ensure accurate and reliable data in the ERP system.
  4. Provide comprehensive training: Train employees on how to effectively use the ERP system and its specific features for supply chain management.
  5. Continuously monitor and improve: Regularly monitor key performance indicators and metrics to identify areas for improvement and optimize supply chain processes.

Conclusion

In today’s competitive marketplace, streamlining supply chain management is essential for businesses to stay ahead. ERP systems offer a comprehensive solution for integrating and optimizing supply chain processes, enabling real-time visibility, better collaboration, and improved efficiency. By leveraging key features such as demand planning, order management, and inventory management, businesses can unlock the full power of ERP in revolutionizing their supply chain. However, implementing ERP for supply chain management comes with challenges and considerations that need to be carefully addressed. By following best practices and learning from successful case studies, businesses can successfully harness the power of ERP to streamline their supply chain and gain a competitive edge in the market.

ERP streamlines supply chain management by integrating processes and departments, automating activities, and providing real-time visibility. It optimizes procurement, inventory, and order fulfillment, reducing lead times and ensuring product availability. However, implementing ERP has challenges like cost, change management, and data integrity. Best practices and involving key stakeholders help businesses harness ERP’s power to stay competitive.

If you’re ready to unlock the true potential of ERP in revolutionizing your supply chain management, contact us today for a consultation and take the first step towards operational excellence. You can learn more about Encompass Solutions by visiting our website or contacting us as sales@encompass-inc.com.


To succeed in Make-to-Order (MTO) and Engineer-to-Order (MTO) manufacturing, you must meet your clients’ diverse needs efficiently and quickly. Today’s customers are increasingly sophisticated, demanding more personalized and configurable products. Consequently, every savvy manufacturer strives to implement innovative processes that beat the obstacles of mass customization. The right technologies can help you address your business and client’s needs and gain a competitive edge. In this pursuit for excellence, an aggressively proficient tool can come in handy. You need a production scheduling solution that can handle special job requirements, visibility, and inventory control. This is where Enterprise Resource Planning (ERP) software comes in.

This detailed guide will take you through the basics of this revolutionary software, including how it works and how manufacturers can use it to enhance their MTO and ETO robotics components.

The Need for ERP for Robotic Manufacturers

In the current era of the human-centric Industry 5.0, manufacturers are getting the most out of automation to drive efficiency. Companies nowadays make even more significant productivity gains by combining manufacturing automation with advanced technologies like robotics.

Generally, every modern manufacturer strives to achieve sustained business growth and increased revenue. Common strategies include:

  • Producing high-value products.
  • Establishing a loyal clientele.
  • Navigating the disruptions typical of today’s dynamic global markets.

But juggling all these simultaneously isn’t as cut and dried. The solution lies in acquiring basic comprehension of the most accessible and potentially impactful automation aspects. Fortunately, you can seek refuge in a reliable ERP solution.

The Benefits of ERP Solutions

At its core, Enterprise Resource Planning or ERP tools comprise integrated business management processes and tools you can use to oversee your company’s data.

The tool manages your daily operations like procurement, supply chain operations, accounting, compliance and risk management, and project management. Moreover, you can connect it to your machines for better insight into your worker’s and equipment’s performance.

This purpose-built manufacturing tool offers numerous capabilities and features geared towards a competitive advantage. Companies already getting the most out of these tools report the following benefits.

Visibility And Projection Flexibility

These tools offer around-the-clock visibility into your entire manufacturing process and product scope. They save each project’s data, enabling product prediction while allowing you to make appropriate adjustments to your strategy and on-the-fly changes to the company’s supply chain.

Improved Lead Times And Less Waste

This human-centered technology ensures optimal productivity by simplifying processes. The ability to leverage data from previous projects can significantly reduce waste as you’ll be implementing lean strategies.

It Aids In Project Management

ERP’s integrated project management facilitates phase planning and budget creation, storing your data in one location. This includes variance chance orders, task management, invoices, sales orders, purchasing, project-based scheduling, and manufacturing job views.

Advanced Analytics

These tools offer around-the-clock access to real-time production data. They record and review your product’s entire lifecycle, including project purchase records and audit trails. So you can always be sure of backed metrics to aid your decision-making – even if you have to decide on the go.

Aids Scheduling And Planning

ERP solutions inform you of each order’s real-time status, providing superior operational oversights to help you address problems, meet deadlines, tweak workflows, track capabilities, and boost collaboration using the social networking tool. By including manufacturing-focused tools in scheduling and planning, you’ll streamline your process to ensure clients receive the highest quality products on time.

Compliance

By automating your compliance process, you can be sure that you’re always on the right side of the law. The software also provides a comprehensive compliance standards trail for delivery, sourcing, production, and design stages.

Seamless Communication

Besides being a proven streamlining framework for business processes, this tool enables seamless product information communication with complete workflows. This includes client sign-off at all the vital stages, from concept design to provide the final estimate.

Serialization 

Most tools fail to address the crucial aspect of manufacturing: serializing finished products and their components. But an ERP tool will keep you ahead by taking care of serialization, returns, and warranties.

How ERP Software Works

In the most basic sense, Enterprise Resource Planning software simplifies business processes by decentralizing your information database and automating routine tasks. It meets complex needs by supplying the right tools to refine operations, obtain actionable insights, and maintain great partner and client relationships.

ERP streamlines processes to meet demand without increasing costs or sacrificing quality, improving your business performance.

Typically, small and medium-sized entities aren’t self-sufficient. So they rely on external suppliers to support operations. But what happens if your sole source of manufacturing components goes belly up or fails to deliver the vital parts? Your operations will probably come to a halt, and you’ll fail to yield on your orders.

Managing your supplier relationships and maintaining a network of reliable collaborations is crucial. This is your best way to maintain the consistency and quality your client depends on. ERP software provides great supplier relationship tools for this job. It automates vast supply chain processes and empowers manufacturers to make informed decisions and get an edge in the competitive landscape.

The system can serve as your single source of truth or repository for all records, helping you preserve accuracy, fix redundant data entry, and streamline workflows. It supersedes supplier relationship management capabilities to offer a complete suite of supply chain management tools, including the following:

  • Purchase Management
  • Manifesting and Freight Management
  • Advanced Material Management
  • Warehouse Management
  • Supplier Relationship Management
  • Supplier Connect
  • Shipping and Receiving
  • Inventory Management
  • Handhelds

Enhance Your Supplier Relationships and Supply Chain Management

At Encompass Solutions, we understand the role of automation and robotics in manufacturing. Thus, we provide the right solutions to help you excel and scale your processes to meet the demands of today’s growing market.

With years of experience serving manufacturing companies, we understand the industry and all underlying factors that drive Automation tooling and robotics. Moreover, we know how an ERP solution can address your labor and supply chain issues to drive efficiency and enable growth. So you can count on us for valuable insights.

All that said, don’t hesitate to download our Epicor Kinetic Catalogue for Manufacturing. It’s absolutely free!


Recently, we’ve been receiving many questions on Epicor’s Lifecycle Policy. This blog will outline the currently supported versions of the Epicor ERP system, the difference between Active and Sustaining support, and the upgrade options available.

Release Lifecycle

Like other software packages, Epicor Kinetic requires frequent patching. These can be for cosmetic (Updates), functional enhancements (Releases), or wholesale architecture changes (Version). Regular patching is necessary to keep the software running smoothly or plug security holes to keep you and your data safe. Epicor’s cadence is defined and outlined in the graphic below of how often you can expect updates, releases, and versions from Epicor. 

Support Lifecycle

Support is an essential part of any software package, and when things are running smoothly, you seldom need it. However, when issues arise and you need support, having an active support contract is the difference between being down for a short period versus an extended outage. The chart below shows what you can expect from a support contract. 

Active support gives you full access to Epicor phone support, security updates, and new issue investigation, to name a few. Sustaining support gives limited phone support, access to the latest release, and an online knowledge base. While you will no longer be able to purchase new modules under Sustaining support, you can purchase additional users for your version.

Review the comprehensive FAQs for Epicor’s support lifecycle. You will need a valid Epicor EpicWeb ID to review the guide. 

Product Lifecycle

All good things must come to an end. Or so the saying goes, right? The good news is Epicor software supports versions back to Version 8.03.400 and earlier under their Sustaining support model. Below is a chart outlining the transition date for each version of Epicor Kinetic ERP. If you are on the Epicor Public Cloud model, you never have to worry about being out of Active support – more on this option below.

What are the Options?

Your options are straightforward. On-premise customers have two options:

  1. On-premise upgrade: As long as you have an active maintenance contract with Epicor, you are entitled to the latest version of the Epicor Kinetic versions. This version can be installed in your server farm, a hosted server farm, or your cloud subscription (i.e. Azure, AWS, Google, etc.)
  2. Migration to Epicor SAAS Cloud: You can migrate your on-premise database up to the Epicor public cloud. Doing so provides a future of hassle-free upgrades and allows you to get back to running your business.

No matter which option you choose you will need to do something if you are on Epicor ERP 10.2 or earlier. To have a conversation about upgrading your Epicor software, email info@encompass-inc.com.


The financial challenges that businesses face can be difficult to overcome without the right person at the helm. A fractional CFO or similarly-qualified financial consultant may deliver the results and value to help your organization succeed. Maybe a full-time financial leader does not make sense for your business or you need support while searching for the right individual. In any case, a fractional CFO or similarly qualified financial consultant may deliver the results and value required to help your organization succeed in a fiscally-healthy, responsible, and sustainable way.

What a Fractional CFO Does for Your Business

While a highly organized person may be able to step into an operational leadership position or a persistent and detail-oriented person can excel in marketing and sales, financial leadership is a unique skill set.

Optimizing cash flow, maximizing growth and profitability, and ensuring the financial stability of an organization are just some of the essential services a fractional CFO can provide. However, a full-time CFO can be tough to justify in terms of cost or it may be difficult to find the right individual to not only make the best financial decisions for your company but also has deep knowledge of and experience in your particular industry.

Whatever the reason a full-time CFO may not make sense for you at this point, Encompass has consultants to provide the experience and expertise you need at a fraction of the cost of an in-house CFO.

Specialty Financial Consulting Services

As a provider of financial leadership consulting, Encompass consultants can strategic expertise to help you better understand and outline your financial goals, ensure your business stays on course to achieve those goals, and excel in a competitive industry.

Partnering with Encompass ensures your business will have a qualified representative leading your financial department to satisfy the most essential functions of a financial department. These services include but are not limited to:

  • Financial Strategy, Planning, and Management
  • Financial Analysis, Planning, and Forecasting
  • Financial Regulation and Compliance
  • Accounting, General Ledger, Administration, and Operations
  • Financial Management > Financial Relations and Policies
  • Cash Management – Cash Flow Analysis/Financial Position Analysis
  • Automation and Process Improvement
  • Financial Technology and Solution Evaluation
  • Financial Strategy Alignment in preparation for, as part of, or following ERP implementation
  • Report Development beyond the initial Balance Sheet and Income Statement created in XLConnect
  • Booking Journal Entries as needed to record Reconciliation differences or reclassifications
  • Financial Statement preparation and review
  • Discussions regarding General Accepted Accounting Principals (GAAP)
  • Month and Year End processes
  • Clean up old and new accounting issues
  • Account reconciliations and analysis

A modern business requires modern tools to maintain a competitive edge. An ERP solution or other business management system will empower your business to address the needs of financial strategy and stability. Our financial professionals work within these systems daily to ensure our client’s financial goals are aligned with their internal processes, and regulations, satisfy the financial compliance requirements of all jurisdictions in which they conduct business, and are liable for financial reporting and payments to which they are subject.

Partner with an Encompass Fractional CFO or Financial Consultant

If you are ready to have a conversation about the financial leadership needs of your business, we’re standing by to help.

Contact us today to learn how Encompass can help position your financial activities and policies on the path to success.

You can download the financial services summary in a sharable format (PDF) below.

Fractional CFO Services

 

About Encompass Solutions

Encompass Solutions is a business and software consulting firm that specializes in ERP systems, EDI, and Managed Services support for Manufacturers. Serving small and medium-sized businesses since 2001, Encompass modernizes operations and automates processes for hundreds of customers across the globe. Whether undertaking full-scale implementation, integration, or renovation of existing systems, Encompass provides a specialized approach to every client’s needs. By identifying customer requirements and addressing them with the right solutions, we ensure our clients are equipped to match the pace of the Industry.


Watch this short video (5:45) to improve your relationship with your customers with automated templates triggered by certain conditions. Use SMS, automated phone calls, or e-mails as you prefer.

 

About Encompass Solutions

Encompass Solutions is a business and software consulting firm that specializes in ERP systems, EDI, and Managed Services support for Manufacturers. Serving small and medium-sized businesses since 2001, Encompass modernizes operations and automates processes for hundreds of customers across the globe. Whether undertaking full-scale implementation, integration, or renovation of existing systems, Encompass provides a specialized approach to every client’s needs. By identifying customer requirements and addressing them with the right solutions, we ensure our clients are equipped to match the pace of the Industry.


Four key technologies promise to drive digital transformation over the next five years. They are expected to shape small- and medium-sized business investment strategies and priorities across industry sectors.

Technology is driving digital transformation and creating a futurescape where artificial intelligence (AI), the Industrial Internet of Things (IIoT), automation, and blockchain are converging in what some futurists call the fourth industrial revolution or Industry 4.0.

Digital transformation marks a radical rethinking of how organizations use technology, people, and processes to fundamentally change business performance. In the next five years, key technologies— including AI, IoT, automation, and blockchain—promise to better enable how companies use data-driven insights to improve operations and boost ROI.

 

About Encompass Solutions

Encompass Solutions is a business and software consulting firm that specializes in ERP systems, EDI, and Managed Services support for Manufacturers. Serving small and medium-sized businesses since 2001, Encompass modernizes operations and automates processes for hundreds of customers across the globe. Whether undertaking full-scale implementation, integration, or renovation of existing systems, Encompass provides a specialized approach to every client’s needs. By identifying customer requirements and addressing them with the right solutions, we ensure our clients are equipped to match the pace of the Industry.


2020 saw a surge in remote work with companies experiencing shutdowns and business disruptions. But thanks to Industry 4.0 and smart factory technologies, many resilient businesses were able to adapt. Manufacturer Hytera reassigned a few of its production lines to produce disposable face masks. Baoshan Iron and Steel kept its facility in Shanghai running with automated production. According to a news report, “The two major product lines in Baoshan are fully unmanned. Each line needs two to three workers for inspections.”

Companies have had to reevaluate their operations to meet social distancing requirements. They created virtual workspaces and leveraged new skills for their employees, Gartner reports. Hytera and Baoshan maintained production with new health guidelines to keep employees safe. With the sudden global changes, many businesses expected a change in production. Close to 80% of U.S. companies surveyed by the National Association of Manufacturers anticipated a financial impact. More than half anticipated a change in operations.

 

About Encompass Solutions

Encompass Solutions is a business and software consulting firm that specializes in ERP systems, EDI, and Managed Services support for Manufacturers. Serving small and medium-sized businesses since 2001, Encompass modernizes operations and automates processes for hundreds of customers across the globe. Whether undertaking full-scale implementation, integration, or renovation of existing systems, Encompass provides a specialized approach to every client’s needs. By identifying customer requirements and addressing them with the right solutions, we ensure our clients are equipped to match the pace of the Industry.


Entrust EDI is an ERP-agnostic solution that enables the automation of document exchange between a business, its trading partners, and customers. This Entrust EDI Automation Demo shows the manual steps Entrust EDI can remove from the document exchange process. This saves time, cuts down on errors, and improves supplier/trading partner relationships.

Implementation of the Entrust EDI solution will depend on your business’s level of preparation before engaging with Encompass. You can begin the process of readying your business by completing a simple checklist. We’ve outlined an EDI readiness checklist HERE with the most common information required to move forward with an EDI implementation project.

To expedite the process, you can complete the EDI discovery questionnaire at your convenience. This will help both Encompass and your organization to move through to implementation more swiftly.

For an idea of the costs associated with implementing EDI, you can use our convenient EDI quote calculator tool.

Want to know more about Entrust EDI? Contact our representatives from the Entrust EDI support team at edisupport@encompass-inc.com or get in touch with us for a general inquiry using the Contact Us link at the bottom of this page.

Watch the Entrust EDI Automation Demo Recording

Additional Entrust EDI Resources

Entrust EDI Brochure

 

 

Entrust EDI Functionality Technical Overview

 

 

Entrust EDI Managed Services Overview

 

 

About Encompass Solutions

Encompass Solutions is a business and software consulting firm that specializes in ERP systems, EDI, and Managed Services support for Manufacturers. Serving small and medium-sized businesses since 2001, Encompass modernizes operations and automates processes for hundreds of customers across the globe. Whether undertaking full-scale implementation, integration, or renovation of existing systems, Encompass provides a specialized approach to every client’s needs. By identifying customer requirements and addressing them with the right solutions, we ensure our clients are equipped to match the pace of the Industry.


Manufacturing has had one wild year and, in the wake of COVID-19, many industry experts, boardroom executives, and men and women on the production floor are “shopping” their theories for 2021 manufacturing trends.

Theories for what 2021 will hold run the gamut, but there is plenty of crossovers shared among contributing voices. Here are some of the most often mentioned subjects we are sure will emerge as the most impactful 2021 manufacturing trends.

The Reshoring of Manufacturing

When the mechanisms of manufacturing all but ground to a halt in Q1 of 2020, it became vividly apparent just how dependent nations were on the capacity and capabilities of a select few manufacturing powerhouses. A year on and COVID scarcity has driven the prices of raw materials up 100-200% when compared with the same period last year.

In the wake of this glut, more than one-fifth of US manufacturers surveyed by BDO are committed to the reshoring of operations as a top priority in 2021.

While both the current and previous administrations are pushing for consumers to “Buy American”, the same sentiment is ringing loud and clear through the EU, Japan, South Korea, and many other leading nations.

The world bought cheap and abundant labor out of China for decades, which left supply chains around the world bottlenecked and vulnerable. Today, diversification of the supply chain is widely regarded by manufacturers as a must-have, and countries like Vietnam, Thailand, Malaysia, and Mexico are raising their hands to offer the capacity and talent to meet the needs of more local-focused supply chains.

Addressing The Education And Skills Gaps In Manufacturing

With decades of reliance on external manufacturing capacity, US-based manufacturers have seen an ever-increasing skills gap needed for their operations at home.

A tremendous contributing factor is the perception of manufacturing as a Triple-D sector. That is, dirty, dangerous, and dull. Whether on the shop floor or at the engineering desk, manufacturers are struggling to fill a gap in skilled jobs that Deloitte expects to reach nearly 2.5 million positions by 2028. Fortunately, according to the National Association of Manufacturers (NAM), manufacturers are willing to pay to close that gap.

Chad Moutray, NAM Chief Economist, said “Manufacturers consistently cite the inability to attract and retain talent as their top concern, and as this survey underlines, they are taking strong proactive steps to overcome it.” The Institute surveyed US manufacturers on their spending in the sector, which totaled more than $26 billion targeting training programs for new and existing employees.

Trade schools, analytics, sensor technology, robotics, AI, VR, etc. are garnering considerable investment to draw in the talent required to fill the deep need these manufacturers are experiencing.

Experts say that simply throwing money at the problem is not enough. Manufacturers and institutions need to share in the investment and collaborate to ensure that what students are learning now is what will be relevant in the manufacturing sphere by the time they graduate.

Talent simply cannot be trained to meet the needs of businesses because tech is changing at such an exponential rate. Agreements between schools and manufacturers will have to provide work experience opportunities while studying to close the gap.

In Encompass’ backyard, Guilford Technical Community College has received both considerable financial investment and buy-in from regional manufacturers with the institution’s recently opened Advanced Manufacturing Facility in Jamestown, NC. There is just as much investment from other manufacturers around the country who are hungry for an engaged and talented workforce produced locally.

Global Shortages Of Computer Chip Manufacturing Hit Home

With climate change, a topic of ongoing significance globally, the reliance on regionally produced tech has put the entire world’s supply of computer chips on thin ice.

Regional environmental conditions are now playing a much larger part than before in how we view the risk associated with the supply chain. For example, the majority of the world’s motherboards are manufactured in Taipei, Taiwan. This region is categorically prone to massive and disruptive weather events and earthquakes. For decades, this has been a reality the US, and frankly, the rest of the world accepted as part of navigating a global supply chain.

Initially, when the coronavirus pandemic first hit, semiconductor factories shut down, causing delays in the supply chain. Because it can take up to several years for these factories to reach their previous production levels, the shortage will likely persist for some time.

Everything from TVs to cars is affected by the shortage of chips, which effectively function as the brain of electronics. To put it in perspective, Apple, the phone manufacturer with a $2 trillion value and semiconductor budget of $58 billion annually, could not get enough of these in-demand chips for their iPhone 12 launch last year. The result was a two-month delay and things are only getting worse for manufacturers big and small.

According to Mirabaud tech analyst Neil Campling, “There is no sign of supply catching up, or demand decreasing, while prices are rising across the chain. This will cross over to people in the street. Expect cars to cost more, and phones to cost more. This year’s iPhone is not going to be cheaper than last year.”

Med Device And Pharmaceutical Manufacturing Look Pale

Such supply chain bottlenecks as mentioned above exposed overreliance on external manufacturers of pharmaceuticals and medical devices over the last year, as well.

Supply chain resiliency, through redundancy and duplication, is a costly and time-consuming effort. However, manufacturers are increasingly adopting a shift in thinking to ensure they can avoid the pitfalls COVID-19 has exposed.

Many medical devices and pharmaceuticals are only sourced through specific geographies. As a result, strategic goods and services will need to be tackled first in a new wave of focus from US manufacturing industries and policymakers. Luxury and consumer-driven products will have to take a backseat until those top-shelf items can be secured at home.

Shifting Trade Policies From Corporate To Congress

US manufacturers are driving the demand for diversity in a capacity beyond East Asia. However, many of the west’s manufacturers, big and small, are making moves to end reliance on the East Asian manufacturing hubs. Recent upsets in trade policy, like free trade agreements, Brexit, tariffs, the repositioning of NAFTA, etc. all impact these efforts.

While not directly parallel, policymakers and legislators are approaching the problem from their perspectives. Regulators’ opinions on the evolution of the supply chain are translated through a different lens than manufacturers. Geopolitical relationships and national security may not translate into the most favorable outcomes for businesses back home. Manufacturers want speed, efficiency, and capacity to deliver products to the hands of consumers. The government will view its priorities through a different lens.

Digital Taxation and Role Reversal

As the border between big tech and manufacturing become more blurred, digital taxation and who does what are the new hot topics. With an increase in digital cross-over into the material realm, the mechanisms of how to handle taxation have not quite caught up.

Namely, this involves the lines between tech and tangible and where the border between industries is truly defined. Perhaps the broader question is, can it be defined?  With companies like Facebook, Google, Apple, and others, who traditionally created digital products, now constructing marketplaces, and investing in tangible goods, like autonomous vehicles, are they considered the new pioneers in manufacturing?

Where does that leave traditional processes and discrete manufacturers? As discrete manufacturers create IoT and IIoT solutions to complement their tangible goods, like sensor and overall equipment effectiveness (OEE) software, do they share the profile of Big Tech? The waters grow muddy. One thing is for sure, the landscape of both tech and manufacturing is sharing more overlap than ever before.

Access to Cash and What it Means for SMBs

Borrowing and access to capital is a defining issue for smaller manufacturers. With interest rates low for manufacturers, questions about effective tax rates, trade relationships, and capital expenditure have been conservative. Fortunately, trade talks with the Biden administration and China have started to take shape, vaccinations are rolling out, and outlooks are generally optimistic.

One leading indicator of this upward trend is found in the number of bankruptcies experienced by manufacturers over the last year. Not nearly as many bankruptcies emerged as were predicted by researchers, analysts, and economists. The big change may have been the fact that banks do not want to become owners like after the 2008 housing crisis. There is simply too much to manage in manufacturing and rather than take on the headache of industry banks may not know enough to run effectively, they opted to work with businesses in the sector to find solutions that worked for both sides.

Robotics and Automation

Robots and automation have been four-letter words for decades, essentially scaring people away from manufacturing. Unfortunately for fear mongers, the need for skilled labor is even more necessary with the inclusion of these advanced technologies. More engineers, more cobot operators, maintenance personnel, and even truck drivers to fuel the internal distribution networks of the United States are in high demand. There will certainly be an upset in the world of manufacturing as these technologies proliferate. However, the timeline by which that proliferation overtakes a human workforce grows ever longer as technology proves to be just as reliant on us as we are on it.

The New Contract Manufacturers

New methods of manufacturing, such as 3D printing or additive manufacturing, are upsetting the traditionally held roles in Industry.

Take, for instance, the effect these technologies have bestowed on traditional distributors.

Third-party logistics providers (3PLs) like Fed Ex, UPS, and others are entering the manufacturing arena, cutting out a space for themselves, and cutting off competitors, in some cases manufacturers, by assuming certain aspects of manufacturing. By leveraging additive manufacturing technology, these logistics providers can cut out the middleman to handle the production and delivery of simple parts and components on a decent scale. You can send your CAD file directly to the 3PL, who will then print out the part and ship it directly.

For the recipient, potentially a manufacturer, in this case, there is a degree of control that is relinquished. Depending on your product, at some point, you will need to verify that your vendor (3PL) is meeting your quality requirements. While the approach is in its infancy with a foundation shaky enough to keep some at arm’s length, it could be a trend that picks up steam quickly. If these providers can achieve the quick turnaround they promise and meet the quality standards that manufacturers and consumers demand, there could be a real shift on the horizon.

Green Materials Propagate in 2021 Manufacturing Trends

Sustainability has never been a topic weighing as heavily on consumers’ hearts and minds as it is today. This puts more weight squarely on the shoulders of manufacturers.

If consumers want more environmentally conscious products and production methods, it’s up to manufacturers to adapt and educate their customers about the changes taking place.

Take for instance the textiles and plastics being replaced by renewable and eco-friendly materials, like mycelium.

Major global brands like Dell Technologies and IKEA have already committed to adopting a Styrofoam packaging replacement made by Ecovative Design.

Indonesian manufacturer MYCL will soon launch a series of sneakers, sandals, wallets, luggage tags, and watch straps made of its mycelium-based leather, Mylea.

The trend has even proliferated into the world of high fashion, with U.S. manufacturers Bolt Threads and MycoWorks aiming to make mycelium-based leather products more widely available this year.

About Encompass Solutions

Encompass Solutions is a business and software consulting firm that specializes in ERP systems, EDI, and Managed Services support for Manufacturers. Serving small and medium-sized businesses since 2001, Encompass modernizes operations and automates processes for hundreds of customers across the globe. Whether undertaking full-scale implementation, integration, or renovation of existing systems, Encompass provides a specialized approach to every client’s needs. By identifying customer requirements and addressing them with the right solutions, we ensure our clients are equipped to match the pace of the Industry.


Providing important business documents and reports to the right people at the right time with the right information is complex enough without having to manage a non-integrated, third-party application. Now, you can have robust reporting functions for document distribution via printing and email attachments built right into your ERP system with Epicor ERP Advanced Print Routing (APR).

 

About Encompass Solutions

Encompass Solutions is a business and software consulting firm that specializes in ERP systems, EDI, and Managed Services support for Manufacturers. Serving small and medium-sized businesses since 2001, Encompass modernizes operations and automates processes for hundreds of customers across the globe. Whether undertaking full-scale implementation, integration, or renovation of existing systems, Encompass provides a specialized approach to every client’s needs. By identifying customer requirements and addressing them with the right solutions, we ensure our clients are equipped to match the pace of the Industry.

1 2 3 6