• Advertise
  • Contact Us
  • About Us
  • Supplier Directory
  • SCB YouTube
  • Login
  • Subscribe
  • Logout
  • My Profile

  • CORONAVIRUS
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Express/Small Shipments
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management (Big Data/IoT/Blockchain)
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Sourcing/Procurement/SRM
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • SC Security & Risk Mgmt
    • Supply Chains in Crisis
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Robotics
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • REGIONS
    • Asia Pacific
    • Canada
    • China
    • Europe
    • Latin America
    • Middle East/Africa
    • North America
  • THINK TANK
  • WEBINARS
    • On-Demand Webinars
    • Upcoming Webinars
  • PODCASTS
  • VIDEOS
  • WHITEPAPERS
Home » Many Manufacturers Still Wedded to Manual Processes, Study Says

Many Manufacturers Still Wedded to Manual Processes, Study Says

August 12, 2015
Sikich LLP

Sikich surveyed 116 manufacturers and distributors – almost 75 percent of which have annual revenue of $1m to more than $100m – for its 2015 Manufacturing Survey and found that 53 percent of respondents still rely on spreadsheets and other manual processes to prepare key performance indicators (KPIs), such as productivity, utilization and availability, among others. According to the survey, which examines industry trends as well as the strategic and economic issues companies face, only 26 percent said they use a financial application module such as an enterprise resource planning system for KPIs.

 “In a time of rapid change, tracking accurate KPIs can mean the difference between stagnation and long-term growth,” said Jim Wagner, partner-in-charge of Sikich’s manufacturing and distribution practice. “The persistence of manual processes in the industry is troubling. Technology can help companies grow more efficient, lower costs and better serve customers. It has the potential to transform the industry and drive success, but companies need to make full use of it to realize gains.”

Though many companies lag on technology when it comes to KPIs, they do turn to technology to support business growth and improve customer service, according to the survey. The top ways respondents said they use technology is to improve manufacturing processes and business intelligence and reporting.

Manufacturers Bullish on U.S. Economy, But Face Challenges

Beyond technology, the Sikich survey reveals manufacturing and distribution companies’ priorities, expectations for the future as well as ongoing challenges.

About half of survey respondents are more optimistic about the U.S. economy compared to 2014. A majority (54 percent) expect their revenue to increase by more than 5 percent this year, and 96 percent said they anticipate their hiring to increase or stay constant in 2015.

Still, in the wake of the financial crisis, many companies remain hesitant to move into new markets or expand product offerings. Nearly 40 percent of survey respondents view increased share in existing markets as their top opportunity for gains in the next 12 to 18 months. Meanwhile, almost a third of respondents spend less than 1 percent of sales on research and development for new products.

“Many manufacturers continue to adopt a cautious approach to growth,” Wagner said. “But while a focus on existing markets presents less risk, it won’t sustain manufacturers forever. Eventually, companies will need to become more aggressive and invest in new markets and products to drive differentiation and future success.”

Additional challenges manufacturers and distributors face include the need to cut costs and make needed capital investments in equipment and technology. More than 90 percent of respondents expect taxation and labor costs to either increase or remain the same in the next 12 months, while 86 percent said the same about the cost of raw materials. Meanwhile, 32 percent plan capital expenditures on equipment while 42 percent expect to spend on computer hardware and software.

As they seek to square the need for more investment with ongoing cost pressures, manufacturers point to the supply chain as a key. A majority (59 percent) of respondents identified supply chain management as either important or highly important to their companies’ success over the next five years.

“An effective supply chain can help companies increase production and delivery and better manage materials, labor and overhead,” Wagner said. “Advanced technology and machinery can further improve potential efficiency gains from the supply chain. Implementing a strong supply chain management strategy is one of the most important decisions a manufacturer can make.”

A copy of the report is available, click here.

Source: Sikich LLP

RELATED CONTENT

RELATED VIDEOS

ERP & Enterprise Systems Technology Business Strategy Alignment Global Supply Chain Management Industrial Manufacturing Pharmaceutical/Biotech
KEYWORDS Asset Management Business Strategy Alignment ERP ERP & Enterprise Systems Global Supply Chain Management Industrial Manufacturing logistics IT Pharmaceutical/Biotech Sikich LLP spreadsheets Supply Chain Analysis & Consulting supply chain IT Supply Chain Management: Industrial Manufacturing Technology
  • Related Articles

    To Grow, Manufacturers Must Address Ticking 'Biological Clock' in Talent Recruitment, Study Says

    Many Aerospace, Defense Firms Dissatisfied with Project Operations Software, Study Says

Sikich LLP

Most Companies Don't Test Their Cybersecurity Defenses, Report Says

More from this author

Wake up to live
“Supply Chains in Crisis”
updates and the latest Supply Chain News!

Subscribe to our Daily Newsletter

Timely, incisive articles delivered directly to your inbox.

Popular Stories

  • Warehouse worker

    Why Higher Wages Alone Won’t Solve the Supply Chain Labor Shortage

    Warehousing
  • Adidas

    From Sneakers to Teslas, China Lockdowns Upend Global Supply Chains

    Coronavirus
  • Mobile App

    Podcast | Companies Are on a Shopping Spree for Supply Chain Software

    Technology
  • ESG Guide

    Confronting the ESG Imperative in Supply Chains

  • SEC building seal

    Get Ready for the Next Phase of ESG: Mandatory Corporate Due Diligence

    Regulation & Compliance

Digital Edition

Scb feb 2022 sm

2022 Supply Chain Management Resource Guide

VIEW THE LATEST ISSUE

Case Studies

  • 3PL Doubles Productivity With Robots to Fulfill Medical Supply Orders

  • E-Commerce Company Cuts Order Fulfillment Time by 40%

  • Fashion Retailer Halves Fulfillment Time With Omichannel Automation

  • Distributor Scales Business by Integrating Warehouse Automaton Software

  • Fast-Growing Fashion Brand Scales E-Commerce Fulfillment With Whiplash

Visit Our Sponsors

Yang Ming Alithya Barcoding
Blue Yonder BNSF Logistics Generix
GEP GIB USA GreyOrange
Here Honeywell Intelligrated Inmar
Keelvar Kinaxis Korber
Liberty SBF Locus Robotics Lucas Systems
Nvidia Old Dominion Parsyl
Redwood Logistics Saddle Creek Logistics Schneider Dedicated
Setlog Holding AG Ship4WD Shipwell
Tecsys TGW Systems Thomson Reuters
Tive Trailer Bridge Vecna Robotics
Whiplash    
  • More From SCB
    • Featured Content
    • Video Library
    • Think Tank Blog
    • SupplyChainBrain Podcast
    • Whitepapers
    • On-Demand Webinars
    • Upcoming Webinars
  • Digital Offerings
    • Digital Issue
    • Subscribe
    • Manage Your Subscription
    • Newsletters
  • Resources
    • Events Calendar
    • SCB's Great Supply Chain Partners
    • Supplier Directory
    • Case Study Showcase
    • Supply Chain Innovation Awards
    • 100 Great Partners Form
  • SCB Corporate
    • Advertise on SCB.COM
    • About Us
    • Privacy Policy
    • Contact Us
    • Data Sharing Opt-Out

All content copyright ©2022 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

Design, CMS, Hosting & Web Development :: ePublishing