1. Forecasting Demand for Products
Today, there are still many manufacturers who have difficulty forecasting future demand. The main problem is that they do not have advanced reporting tools that allow them to estimate how many items they should sell in the next few months or the following year. As a result, their products fail to meet the customer demand and they suffer lower sales.
2. Controlling Inventory
Inventory management is still one of the main challenges in the manufacturing industry, but thanks to the help of automated solutions, it has become much simpler. Nevertheless there are still many manufacturers, especially the small ones, who still manage their inventory manually.
Inventory tracking is a time-consuming process that can be streamlined with the help of software. Checking stock manually is very inefficient and prone to errors that can lead to inaccuracies, shortages and overstock, as well as unidentified damages.
3. Improving Efficiency at Manufacturing Plants
Up until now, manufacturers have been looking for effective ways to reduce costs and improve efficiency at their plants. Many of them choose to sacrifice the quality of their products to reduce their production costs, but this will only reduce their profitability, because dissatisfied customers will stop buying from them.
4. Increasing ROI
Any manufacturer would want to be able to increase their ROI. They would usually increase their sales or the price of their products. However, these aren’t effective ways, especially when economic conditions are being erratic, reducing consumer purchasing power.
5. Skilled Labor Shortage
Although automation and robotics can help fill the labor gap, human capabilities will still be needed to analyze and solve problems as well as manage outputs. With the baby boomer generation entering retirement, the manufacturing industry is facing a looming labor shortage. This is one of the biggest threats facing the manufacturing sector today.
6. Managing Sales Leads
Another challenge often faced by manufacturers is managing and prioritizing sales leads. Many of them treat their leads in the same way, but this isn’t the right method. Every sales lead must be treated specifically since they have different characters, preferences, and needs.
Manufacturers also often find it difficult to identify potential leads so they often focus on unpromising opportunities and forget to follow up with high potential leads.