Investing in manufacturing involves proper inventory technology
June 24, 2013
As more manufacturers need to grow their businesses and maintain competitiveness in the global market, executives should implement stellar inventory software. Recent reports show that the Canadian manufacturing sector is finding itself in a challenging situation and quickly sliding into recession-like levels. This may only be a short-term view, but understanding the problems in the industry and looking to solve them may be the key to growth. One part of running a business better and capitalize on new sales is investing in inventory technology. There are so many digital advances that will aid in the management of manufacturing operations, and software that handles the production and financial aspects of inventory can make a business more organized and prepared for any future developments.
How Canadian manufacturing is faring
Metroland Media reported that Canada is slowly falling on the global competitiveness scale and unaware of how to attract and deal with foreign manufacturing environments. One of the reasons Canada scored poorly on the scale is because companies aren't investing in the innovation needed to stay competitive in a global market. There is also less productivity in Canada than other countries. The U.S., for instance, saw three times more manufacturing productivity than Canada in 2010. There are more than just monetary reasons behind the decline in manufacturing. The Canadian dollar is not to blame. But, slow labor, lack of technological resources and infrastructure deficits, among other reasons, contribute to the problems, according to the source.
The need for better management and operations procedures is one way for manufacturers to gain a more globally competitive edge. Investing in wholesale inventory software and other such technological resources could be a step in the right direction. Improving the value and functionality of a facility will make Canadian products and companies more attractive and worth doing business with in the future.
What to do about it
When it comes time for businesses to invest in manufacturing facilities, they look to find value and functionality, according The Globe and Mail. Louis Schorsch, the president and CEO of Flat Carbon Americas at ArcelorMittal, told the source that executives should look at the size, costs, logistics and maturity of any organization before investing money into it. This means manufacturers should look internally to see if their operations and management are appealing to other industry professionals. If manufacturing firms do so, more companies may choose to become business partners with them. Inventory software is something manufacturing managers can start with to make their operations run more smoothly and be a viable option to investors, which will ultimately help their firms gain competitiveness.