Supply chain disruption has been a key challenge across most industries in Australia, and none more so than the manufacturing sector. Parts shortages, price increases, delayed orders or unavailable products, and the fragility of our global systems have been top of mind for Australian manufacturers over the last two years.
Research from MYOB’s recent 2022 mid-market report – Bold Ambition – shows that 45 per cent of manufacturing respondents in Australia cite supply chain disruptions as their biggest challenge for 2022.
A global pandemic is not the only driver for supply chain challenges however – disruptions lasting a month or longer now happen every 3.7 years on average due to ever-increasing threats of financial crises, terrorism, and extreme weather.
Despite this risk, 83 per cent of respondents within manufacturing are optimistic about the year ahead, though it has brought the need for better digitisation into sharp focus as they continue to manage supply chain challenges.
More than three quarters of mid-market businesses indicate they plan to make operational changes to their business in 2022, and that investment in business management technology such as ERP, payroll, and workforce management is top of mind.
According to recent research from McKinsey, while the pandemic accelerated the digitisation of supply chains, average supply chain capability has not changed in real terms since 2017. With a strong appetite for investment in digitisation, mid-sized Australian manufacturers are signalling a desire to increase capabilities to meet their ambitions.
The right business management platform is critical to managing complex supply chains. Understanding where businesses are vulnerable to risks is vital, and only achievable with the visibility that an integrated platform delivers. Shocks to business will reveal weaknesses in supply chain, but it’s much better to proactively identify and minimise risks to successfully navigate disruption.
Anticipating disruption, responding to shifting demand and gaining greater transparency of the supply chain is only achievable with an integrated, real-time view of your business. When it comes to supply chain risk management, the manufacturers that are going to come out strong are the ones that can demonstrate to their shareholders, their employees, their business partners, and the public that they have invested in understanding their supply chain and have mitigated any vulnerabilities contained in it.