8 minute read
BUSINESS & FINANCE
By Anne-Marie Keogh
It’s all too easy to blame advancing technology as a major challenge for industries such as manufacturing and distribution, says Anne-Marie Keogh. But while technology can complicate business, it can also simplify it.
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In today’s reality, bewildering datarates demand that decisions are made at breakneck speed.
Organisational silos begin to interfere with operational efficiencies, as individual business units incorporate tools and systems to meet their own specific needs.
And the always-on mobile world demands that companies satisfy their customers as and when they demand it.
Traditional accounting software and legacy enterprise resource planning (ERP) solutions are no longer good enough.
ERP was originally developed to help manage basic finance and accounting tasks. But it has evolved into a system that automates, manages, and delivers greater visibility into administrative, operational, financial, HR, procurement, manufacturing, warehousing, sales and marketing, and customer service functions.
The problem with this evolution is that companies have been left with ever-more complex systems that are neither flexible nor customisable.
Because these legacy ERP systems were never designed to work effectively with realtime data, they can’t help provide the insight needed to make smart, timely decisions. And there is no way they will be able to cope as the global economy grows and intensifies.
Not only that, but also when a customer adopts old-school ERP, they often struggle to get support - particularly when they add on ad-hoc solutions to satisfy different business units. These add-ons often don’t integrate well with the original solution, which tends to obstruct business processes rather than streamline them.
Mid-market enterprises are also finding that their management software isn’t able to align siloed departments and business processes. This leaves them with inconsistent data or an inability to find key information when they need it.
In a recent survey, Aberdeen Group asked leading manufacturers what they looked for in a new enterprise management solution. 44% wanted streamlined and accelerated processes to improve efficiency and productivity; 38% wanted a modernised technology infrastructure; and 31% wanted improved interoperability and collaboration.
Today’s forward-looking mid-market enterprises are demanding a new class of enterprise management solutions that can answer today’s challenges, streamline business processes, and improve collaboration – both within the business and across the supply chain.
The “wish list” for a modern enterprise management solution includes: easy access to accurate company information and reports; full information about services, products, vendors, suppliers, customer orders and more; easy analysis of sales and planning information; easy collaboration between teams in different business groups; and the ability to support multiple languages, currencies, companies, sites, and legislations.
The system should provide: accurate realtime data intelligence; faster processing of core business functions such as procurement, inventory, sales, and customer service; and improved forecasting and simplified financial management in a single system.
And it needs to have virtually unlimited capacity to scale for any size of enterprise operating anywhere in the world.
Sage explores this concept further in a new eBook titled “Move Beyond ERP”, available from www.sage.com/en-au/cp/ enterprise-management/beyond-erp.
Anne-Marie Keogh is with Sage Software Australia.
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Manufacturing & Wholesale Manufacturing & Wholesale
Matthew Kelly Head of Manufacturing & Wholesale 0412 265 197 manufacturingwholesale@stgeorge.com.au Matthew Kelly Head of Manufacturing & Wholesale 0412 265 197 manufacturingwholesale@stgeorge.com.au
WHAT DOES 2020 HOLD FOR MANUFACTURING?
Industry Update sat down with Matthew Kelly, EM Manufacturing and Wholesaling, St.George, to find out his views on the financial health of the manufacturing sector in 2020.
IU: How do you view the general financial climate for the Australian manufacturing sector in 2020?
MK: I believe 2020 will see the emergence of a new generation of Australian manufacturing, with a great opportunity for financial growth. New South Wales manufacturers alone produce almost 30 per cent of Australia’s total manufacturing output and generate about AU $33 billion in industry value (St.George Advanced Manufacturing Report).
With new technology allowing both start-ups and well-established manufacturing companies to move their businesses into the future, we can only see the financial climate improving.
However, a recent report reveals that two-fifths of Australian manufacturers are reporting being affected by the coronavirus (Roy Morgan), which poses a threat to the positive financial climate of the industry.
IU: How do you think local companies are taking up the challenges and opportunities of advanced manufacturing? MK: We’ve seen great excitement from local manufacturing companies when it comes to taking on new challenges and opportunities. The sector is far from fading with automation, artificial intelligence and pure inventiveness enabling new business models and processes that are transforming an industry, which already contributes AU $100 billion to Australia’s GDP (Australian Bureau of Statistics).
However, the industry can do more to create a compelling value proposition for the next generation aligned to what matters most to them when purchasing products. This could be through investing in innovative manufacturing techniques to reduce costs and further using sustainable materials.
IU: Is there sufficient help available from governments and/or banks to help Australian manufacturers adapt to new technologies and markets?
MK: While the government does provide adequate support to Australian manufacturers, we at St.George have a commitment to investing in the future of the sector.
AUSTRALIAN TYRE RECYCLER EXPORTS PROCESS TO THE USA
Australian tyre recycler Green Distillation Technologies has signed a deal to build its first plant in the USA in an agreement that will provide up to US$100 million of funding for the roll out of additional US plants subject to the successful operation of the first one.
GDT’s Chief Operating Officer Trevor Bayley says that the deal comes as the result of a considerable amount of work to negotiate an effective and workable agreement in the light of numerous US enquiries about the company’s technology, which recycles end-of-life tyres into oil, carbon and steel.
diesel, jet fuel and other petroleum based products.
“The US, like most countries around the world, has a significant old tyre disposal problem and generates in excess of 250 million end-of-life tyres a year,” says Bayley. “In contrast, Australia reaches 25 million, but the number of old tyres are increasing fast in India and China and the world total is now in excess of one and a half billion a year.
“In the light of this burgeoning environmental disposal problem our approach provides a recycling solution as we turn a problem into valuable and saleable materials.
“The carbon we produce is a high-grade product that has massive potential for sale as carbon, in the form of carbon black. This is one of the world’s most widely used chemical building blocks in many products ranging from tyres, plastics and paints, water filtration, printer’s ink, paint, electrodes, graphene, toothpaste and cosmetics including eyeliner, mascara, nail polish, eye shadow, blushes, rouge and lipstick,” says Bayley.
Bayley went on to highlight the company’s domestic progress, which will see its processing plant at Warren in Western New South Wales reach full production in 12 months and the second facility in Toowoomba, South Queensland, reaching full operation in 18 months. The projected cost of these two facilities is $20 million.
St.George has been working across the manufacturing sector to provide help and build capabilities for businesses to adapt to new technologies and markets. For example, the St.George Kick Start programme offers $100,000 in grants to support Australia’s brightest business ideas, across all industries, including manufacturing. The grants will allow businesses to invest in scaling up and embrace new technologies.
Additionally, at St.George we are collaborating with scientist and engineer Professor Veena Sahajwalla from The University of New South Wales and the Advanced Manufacturing Growth Centre (AMGC) to help businesses unlock their potential and address pain points such as rising energy costs.
IU: Finally, Matthew, will we see you in the Happy Dragon suit again this year?
MK: Yes, I will be in the Happy Dragon suit again this year to raise money for three wonderful charities, The Royal Institute of Deaf and Blind, St Gabriel’s School for Autistic Children and Westmead Prenatal. It is a privilege to be able to assist in raising money for them and should you be interested in contributing or donating, please get in contact.
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