Following a year of the Russia-Ukraine war, supply chain disruptions and record-breaking inflation, we look to the year ahead and what 2023 might have in store for manufacturers and distributors.
Even with pandemic-related restrictions now over, many enterprises have quickly realised the market is not what it used to be.
New technology and the latest Enterprise Resource Planning (ERP) trends mean companies will need to update their systems urgently. Manufacturers and distributors will be looking at their ERP software systems and trying to maximise benefits.
So, what can organisations expect to see in 2023 and what technology trends will define the year?
For starters, it would be difficult to discuss any future trends around ERP solutions without looking at the current global supply chain situation. While there has been some pressure removed from manufacturers and distributors, there are still major shortages of key materials, causing delays in production as well as price increases.
Due to these shortages, organisations are finding it difficult to keep enough inventory in stock as well as numerous challenges around procurement.
Almost every manufacturer experienced raw material shortages, with supply chain management technologies within ERP systems becoming significantly more popular. These solutions help organisations interact with suppliers and customers more effectively, thus improving their supply chains.
ERP rollouts of the last decades focused on collecting transactional data. But finance organisations are now burdened by the quantity of information collected and don't know how to analyse or use it.
This has led to more intelligent ERP solutions, augmented with AI (artificial intelligence) and connected data from the transaction and external sources to generate a system that provides contextualised features, experiences, and processes and can continually learn, improve and adapt.
Effective implementation of an intelligence solution can help reduce human error, save costs, and free up time for your employees to focus on value-generating areas of your business.
This domain will be supported by adjacent advancements in AI, the interconnectivity of Internet of Things smart devices, edge computing, digital twins, remote operation, satellite and 5G communications, and advanced materials.
Following the recent COP27 climate talks in Egypt, there has also been a renewed focus on finding sustainable solutions and fighting climate change from both the public and private sectors of all industries.
Thanks to developments in power, energy, and battery technologies, new solutions can make organisations more efficient and lessen the impact of climate change.
For example, advancements in nanotechnology and materials are helping to improve the battery life of vehicles and phones and to reduce dependence on infamously scarce and hard-to-obtain materials such as cobalt and lithium.
Energy storage solutions such as pumped storage hydropower and flywheel energy storage can help stabilise energy grids, make them more efficient, and ensure that energy isn't wasted.
This year, we will see more manufacturers and distributors adopting sustainable solutions across their operations to not only reduce their energy costs but their carbon footprint as well.
Thanks to the Covid-19 pandemic, cloud adoption has increased globally, with ERPs moving away from on-premise and migrating their applications to the cloud.
Having remote access isn't enough. ERP systems have to meet the needs of a more mobile and remote workforce. Accessing business insights, customer and stock information and processing alerts on the go from a mobile device are part of a mobile-friendly ERP, making workers more productive beyond their place of work.
As a result, several features of ERP solutions are extending to mobile devices. Mobile ERP systems can support powerful functionalities beyond office or warehouse environments, adding considerable value to your business.
At the start of 2022, IDC Corporation predicted that by 2026 Cloud-Native architecture and its ability for continuous innovation will be the main selection criteria in over 80 per cent of IT-led enterprise application deployments.
These cloud models offer many benefits, including the ability for smaller companies to ramp up their IT investment.
This has resulted in a variety of solutions available on the market, with today's cloud-based ERP systems becoming well-suited for even small-to-midsized companies.
These companies can choose between implementing a system fully located in the cloud or implementing a hybrid model that still offers a degree of in-house IT control.
ERP technologies are constantly evolving and becoming more sophisticated. In the future, ERP systems will become more intelligent, more user-friendly, and more integrated. As a result, they will become an even more essential tool for businesses of all sizes.
