Global economic turbulence and shifting political dynamics are impacting supply chains significantly, increasing costs, and intensifying operational pressures. Australian and New Zealand manufacturers now operate in an environment where small disruptions compound quickly into major challenges, putting profitability and growth at risk.
Manufacturing companies need a clear view of their operations to weather this unpredictability; however, many continue to operate with disparate systems, creating silos that fragment critical business data. Manufacturers struggle to maintain visibility of inventory levels, production schedules, and resource use without integrated systems.
Andrew Mamonitis, APAC vice president of manufacturing, ECI Solutions, said, "Visibility is a recurring challenge for manufacturers, especially those with vast amounts of valuable data trapped in separate, outdated systems. The inability to access or integrate this data means they're making critical business decisions without a complete picture, risking costly errors and inefficiencies.
“Production scheduling exemplifies this complexity. Manufacturers frequently encounter difficulties maintaining accurate schedules, especially when each production step depends on precise inventory management and timely availability of components. Delays in a single small part can halt entire manufacturing lines, severely impacting productivity and customer delivery timelines.”
The solution to these challenges lies in modernising and integrating core business systems, such as enterprise resource planning (ERP) solutions. ERP systems consolidate data across all areas of operation, from procurement and inventory management to financial planning and shop-floor scheduling. Centralising this information gives manufacturers real-time insights to anticipate and respond proactively to disruptions rather than constantly reacting to crises.
Andrew Mamonitis said, "Implementing an ERP solution isn't about replacing people or just upgrading software; it’s about improving the agility and resilience of the entire business. Unifying systems lets manufacturers identify inefficiencies quickly, anticipate bottlenecks, and take timely corrective actions.
“However, manufacturers often resist upgrading legacy systems due to concerns over implementation complexity and staff retraining. One common misconception is that efficiency means fewer jobs, when the reality is the opposite: enhancing capabilities helps businesses grow, creating more opportunities for staff development and career progression. The challenge is changing the mindset and communicating the value of these improvements clearly to everyone involved. Businesses should focus on reskilling and upskilling staff, emphasising how new tools and technologies can make their work easier and freeing them up to contribute to other high-value tasks."
Effective change management is critical during the adoption of any new system, yet organisations frequently underestimate its importance and prioritise technological implementation over employee buy-in. However, sustainable change requires employees to understand and embrace the new ways of working, ensuring long-term benefits rather than short-term disruptions.
Andrew Mamonitis said, "Manufacturers often assume change management is purely about training, when it’s actually about transforming behaviours and attitudes. Even the most advanced system may fail to deliver lasting value without employee buy-in. People are more likely to embrace a new system fully when they genuinely understand how it simplifies their tasks and improves their work experience, delivering sustained, positive impacts.”
ERP systems are also not set-and-forget solutions and, as businesses evolve, their ERP platforms must evolve alongside them. Regular reviews and adjustments let manufacturers fine-tune their systems, aligning strategic objectives with shifting market demands. Manufacturers can also identify new areas for growth and uncover hidden inefficiencies before they escalate through proactive management of their ERP system.
Andrew Mamonitis said, "Manufacturers often underestimate how quickly their systems can drift from their original business strategy. Leaders need to establish clear processes for proactively identifying when and how their ERP configurations should evolve, instead of waiting until inefficiencies force their hand.”
Another critical consideration is the ongoing shift from on-premises systems to cloud-based ERP solutions for greater flexibility, scalability, and cybersecurity.
Broader challenges facing the Australasian manufacturing industry compound these operational pressures. Workforce shortages, particularly skilled labour, pose significant difficulties, while businesses also find it increasingly challenging to attract younger workers into manufacturing roles. Australian manufacturers are also experiencing heightened competition from offshore producers alongside increasing domestic production costs. Government grants and initiatives exist to support local manufacturing; however, their complex application processes and lengthy approval timelines often limit their practicality. Manufacturers are seeking out more direct partnerships with ERP providers as a result for quicker implementations tailored specifically to their immediate business needs.
Andrew Mamonitis said, "Futureproofing a manufacturing business demands building resilience through improved operational visibility, streamlined processes, and adaptable technologies. Proactively modernising systems and optimising resources positions Australasian manufacturers to survive uncertainty, capitalise on emerging opportunities, and maintain a competitive edge in a rapidly changing market.”
