-Andrew Mamonitis, Vice President – APAC, Manufacturing Division, ECI Software Solutions

It pays to optimise your processes and practices before expanding or bringing an external investor on board.

Despite challenging conditions, manufacturing businesses are looking for ways to grow their share of the domestic market and pursue potentially lucrative export opportunities.

 

A low Australian dollar, coupled with our country’s reputation for quality and reliability, is making it easier for some manufacturers, particularly those in the agri-business sector, to get an ‘in’ to new markets, in Asia Pacific and further afield.

Seeking funding for growth

Taking advantage of an opportunity to diversify your range or expand your customer base generally means upfront investment is required. You may need to acquire new equipment or additional inventory, for example, take on extra staff, or run marketing and business development campaigns.

Unless your business has a sizeable sum stashed away, that means borrowing from the bank or bringing an external investor on board.

But before writing a cheque, or approving a loan, any potential backer will want to see evidence that your sales are strong, your business is profitable and you’re running a tight ship.

If you’re not able to demonstrate you have efficient systems and processes in place, and a solid pipeline of work, you may find it tricky to secure the funds you need to grow.

Show me the money

Presenting your business in the best possible light starts with showing you’re on top of your finances.

Up-to-date accounts, accurate forecasting, rigorous revenue management and a strong understanding of your cash flow are all essential.

So is visibility into your customer base. Being able to identify your largest and most profitable accounts and supply a detailed picture of their buying behaviours builds credibility, as does knowing which of your customers are tricky to manage or late payers.

Firing on all cylinders on the factory floor

Also vital: proving your business will be able to produce the goods, on time and on budget, as it scales up.

​That entails understanding your production capacity and maximising the efficiency of your machinery and equipment.

You’ll also need a means of monitoring productivity and output, on every production run and shift, to ensure all your employees are working productively.

Meanwhile, having scheduling and stock control systems in place tells outsiders that bottlenecks and delays are less likely to occur and that inventory costs are optimised.

Muddling along in manual mode

Demonstrating your business is a sound bet can be tricky if you’re operating in manual or semi-manual mode, as many small and medium sized manufacturers continue to do.

The use of spreadsheets and paper-based systems remains common and so does excessive reliance on owners and long-term employees who know how things are always done, rather than on well documented processes and practices.

Having key financial and operational data stored across disconnected systems – and important intellectual property stored in the heads of your team – can make it hard to obtain the insights you need to optimise your operations.

And unless that data is consolidated in a ‘single source of truth’, at your fingertips in easily accessible form, providing potential backers with a precise picture of your position can be an impossible ask.

Tools to make the task easy

That’s where cloud-based enterprise resource planning (ERP) software has a vital role to play.

Abandoning legacy processes and practices and migrating all your operational and financial data to a single solution – one that’s been developed with the unique requirements of the manufacturing industry in mind – can help you optimise every aspect of your operations.

You’ll be able to maintain accurate, up-to-date visibility of how your business is tracking and harness the power of AI-powered analytics technology to identify emerging issues.

From improving the utility of your plant and equipment and managing your stock levels to accelerating your cash flow, you’ll be able to eliminate the inefficiencies that impede productivity and drag down profitability.

And, having done so, you’ll be able to provide external parties with all the evidence they need to buy into your vision for growth.

Laying the groundwork for growth

​Seeking external funding has been part and parcel of the growth journey for scores of successful manufacturers. Securing the confidence of potential backers is simpler when you’re able to show them your business is an efficient, well-run affair.

If you’re committed to taking your enterprise to the next level, ERP technology that enables you to monitor and manage every aspect of your operations is an investment that will stand you in excellent stead.