Melbourne, Australia, 24 november 2021 / PRNewswire / – Today, SYSPRO, a global provider of ERP software, announced new CFO 4.0 research, which reveals that CFO of manufacturing will play a key strategic, innovative and financial role in the future of the company. The study, which was conducted in July to September 2021 and led by SYSPRO, assessed the sentiment of senior CFOs in the manufacturing sectors of the Americas, APAC and EMEA. Attendees included financial leaders from both SMEs and large corporations, saying these findings reflect the ideas of a wide range of players in the manufacturing and distribution space.
Diversification of commercial operations
The study found that the disruption caused by the pandemic played a catalytic role in the diversification of manufacturing companies. In order to thrive, 65% of CFOs surveyed said they had shifted their spending to new markets, product lines and technologies. Going deeper, the SYSPRO investigation revealed:
- 33% of companies have expanded into new markets
- 29% of companies have innovated thanks to the implementation of a new production line
- 39% of businesses will explore new avenues to markets such as e-commerce channels
In order to allow the diversification of economic models, 29% of CFOs indicated that they would invest more in R&D.
Building and securing a digital future
When asked about future areas of investment to ensure continued success, 56% of CFOs surveyed said they would invest in warehouse automation, 37% of respondents confirmed they would study migration to customer-based services cloud and 37% would explore SMART technologies. including 3D printing, IoT, machine learning, and artificial intelligence. 47% of CFOs also said they would invest in ERP to increase visibility, improve transparency and data-driven decision making.
Winning the war for talent
When exploring the main reasons for business disruptions in 2021, it’s no surprise that 43% of respondents point to the delay in sourcing raw materials or inventory from onshore or offshore suppliers.
It is not surprising, however, that this figure is closely followed by the acquisition of talents and skills, which stands at 38%. “The pandemic has highlighted the importance of digitally savvy talent as businesses continue to invest in smart technologies and automation. The skills gap is vast and businesses have recognized a growing need to onboard highly skilled individuals and rapidly develop their current staff, “says Sanjay Galal, SYSPRO Financial Director for APAC.
Proactive business risk management
With increased pressures on global supply chains, survey respondents noted that inventory management costs have the potential to rise to unpredictable levels. When asked about the main business risks for 2022, 40% of CFOs highlighted the management of rising inventory costs, 36% of respondents were concerned about cash flow management and unsurprisingly, 35% mentioned management local and global supply chains.
According to Rob stummer, Asia-Pacific CEO at SYSPRO, “As the pandemic continues to impact the global path to recovery, it has also enabled companies to change their operations and adapt. We see the industry exploring new territories, expanding production lines and evolving business models. The CFO has been a catalyst in these changes and changing the face of manufacturing as we know it. “