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How ERP will transform the dynamics of Manufacturing in Covid-19?

How ERP will transform the dynamics of Manufacturing in Covid-19?

The world economy has been in a sorry state of affairs since the COVID-19 outbreak. Media houses are brimming with the content on widespread unemployment, people losing jobs, salary cuts, etc. Companies are struggling to keep themselves productive and cost-effective. Manufacturing companies have been hit hard because the demand for luxury goods and non-essential items have fallen tremendously. And due to the ongoing lockdown, conditions aren't going to be stable for a long period.

The transmigration of laborers from industrial cities to their homes is another point that has disturbed the sleep of many. But as the famous proverb says ‘Drastic times calls for drastic measures’, those companies that will adopt enterprise technology - ERP software - will experience a level of security. This article throws light on how ERP software will transform the dynamics of manufacturing during and after COVID-19.

Buying Methods will Change


After the SARS pandemic of 2003, the world saw the rise of e-commerce platforms like Amazon. Similarly, after the COVID-19 outbreak, it’s highly likely that the world will see yet another transformation. The current pandemic has taught us that brick and mortar stores fall short of providing the required supplies in times of crisis.

Thus, continuing upon the lines of former success of e-commerce platforms that revolutionized people’s personal lives, the new world order will revolutionize their professional lives.


When people can buy tasty food, action games, trendy shoes, and designer clothes at the click of a button, why can’t companies get business-critical materials in the same way? This is where ERP software will help you. It will enable you to gain a clear understanding of market rates, selling price of different vendors, and purchase them on short notice.

Moreover, with online selling going to increase at a fast pace in the coming times, digital security is going to emerge as a hot topic. Luckily, ERP systems have a solution for this. They can easily collaborate with Blockchain systems to provide enhanced security and mitigate fraudulent activities.

Automation is the Future


The future belongs to an ecosystem of interconnected machines. This is because they are lightning fast, carry out repetitive tasks without a decrease in productivity, and help maintain good relations with customers and vendors.


Upcoming technologies such as 5G and advancements in IoT and Cloud is only going to make the road smoother. Extremely high data speeds will ensure that machines carry out operations without any lag. Highly efficient monitoring systems will help employees keep track of what is happening inside the manufacturing facility without ever entering it.


Robotics is another technology that is making great strides in this area. Robots can easily move inside the warehouse, sort items, and locate them through RFID. They can also load/unload items on/off trucks. Moreover, they can create invoices and transfer funds from the owner’s bank account to that of the vendor without any human intervention.


Furthermore, drones have become the talk of the town. It’s because they can transport materials from one place to another through the air route. This saves time that allows companies to use it as a competitive advantage and charge more premiums from their customers. It also limits human-to-human touch that helps curb the spread of the virus. ERP software integrates the power of IoT, Cloud systems, Robotics, and Drones in a single ecosystem and enables businesses to register high profits.

Resource Sharing will Become Common


The COVID-19 crisis has revealed the volatility of supply chains across the world. They are so volatile that distributing essential items in some places has become a herculean task. And with the virus spreading unabated, it seems highly likely that the transient supply chains will soon crumble. It calls for new measures to ensure judicious use and distribution of resources.


This is where an ERP system helps. It forms a consortium of companies that might require the same materials, machines, technology, and peoples' capabilities and exchange them for a small fee. This helps to reuse resources in the supply chain over and over again and prevents them from being wasted.


For example, GE lends aircraft to airline companies on a subscription basis, and the latter maintain engines and warrant uptime.


Moreover, ERP systems can easily be integrated with blockchain to handle the transactions happening between companies in the consortium. It can easily identify who borrowed what amount from whom, create payment schedules, and send alerts when the deadline approaches.

Remote Work is the New Normal


Doctors, virologists, and reputed international institutions such as the World Health Organization (WHO) recommend social distancing as an effective measure to curb the spread of the virus. Remote working helps do just that. It allows employees to work from the comfort of their homes, thereby eliminating the threat of contracting the deadly virus.


This is where ERP systems come into play. They create a virtual playground that allows geographically separated teams to work with each other. It integrates virtual tools that assist the to-and-fro of information at high speeds. Some of the tools are mentioned below:


  • Video Communication Tools: It helps to conduct face-to-face video and brainstorming sessions with teams. For example Skype, Zoom.

  • Text-based Communication Tools: It helps send real-time messages to team members. For example WhatsApp.

  • Collaboration Tool: It enables geographically dispersed teams to work on the same project. For example Google docs.

  • Data Repositories: It allows teams to store, share, and access large amounts of data in the form of PDFs, pictures, audio, and video files. For example Google Drive.


The above points clearly show how important ERP software is for the manufacturing industry. From providing ready access to raw materials to managing operations in the warehouse to loading and picking up finished products to assisting remote working, it takes care of everything. Those companies that implement ERP software will gain a competitive advantage while those that don’t will fall back.



Nishant likes to read and write on technologies that form the bedrock of modern-day and age like machine learning, data science, AI, and robotics. His expertise in content marketing has helped grow countless business opportunities. Nishant works for Sage Software Solutions Pvt. Ltd., a leading provider of ERP and CRM Software to small and mid-sized businesses.
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