SMB Manufacturing: People and Processes with Andrew Mamonitis

A strong ecosystem of solutions is available to manufacturers looking to thrive in 2024 and beyond. Here are our top tips for manufacturers readying themselves for a manufacturing future.

Change is the only constant in manufacturing and the industry has experienced the pandemic hangover and the war in Ukraine causing supply chain issues, which has resulted in exponential change for the industry. The core business pillars of productivity, people, and processes all need to adapt to the new operating environment. ECI Solutions’s Vice President of Manufacturing in APAC, Andrew Mamonitis, considers the adaption needed for manufacturing to thrive in APAC.

In Australia, 98% of businesses are small-to-medium sized (SMBs) and the nature of running an SMB requires owners and leadership to be actively involved in their business, meaning not as much time or resources can be spent looking at how their business is managed. Within this environment, it is little wonder that manufacturing in Australia has experienced challenging times and with it the industry has been given the impetus to critically review business operations and put in safeguards to smooth rough seas to come.

Uncertain times

ECI Solutions’s Vice President of Manufacturing in APAC, Andrew Mamonitis, said the current climate was one with a hefty dose of uncertainty.

“It started with supply chain issues brought to the fore by the COVID-19 pandemic, and this was followed by labour shortages in the manufacturing sector. This was then exacerbated by geopolitical instability in regions around the world that impacted APAC’s relationships with trading partners, which was key to the success of manufacturing businesses. And following these challenges are the inflation headwinds that the region is experiencing,” Mamonitis said.

“Business tends to become more conservative when challenged with uncertain operating environments. As a generalisation, in my experience SMBs see the need to become more efficient to safeguard themselves for future challenges but the tendency is to minimise costs and pull back on innovation and growth plans at a time when they are critically needed.”

Mamonitis suggests businesses take the time to evolve from labour intensive practices to set themselves up for whatever headwinds or rough seas may come their way.

“I know that it feels counter-intuitive to spend to save but that is exactly what is needed for manufacturers to thrive and not just survive,” Mamonitis said.

“Now is the time to automate your manufacturing business and use enterprise resource planning (ERP) software such as ECI Solutions’s M1 or JobBOSS² to automate your processes and integrate your data so you can make better and faster decisions about your business while still working in your business.”

Changes over the next 12 months

Mamonitis sees the manufacturing industry undergoing vast change over the next 12 months especially as the COVID-19 supply chain hangover is solved through changes in business processes.

“Evolution in manufacturing is coming full circle,” Mamonitis said.

“The industry is moving towards a decentralised model and that is due to COVID-19 emphasising the business risk of having a centralised manufacturing industry in only a few overseas countries.

“We will continue to see manufacturing occurring closer to the end customer—rather than have elements outsourced to international manufacturing hubs,” he said.

“This will inspire new manufacturers emerging in APAC as well as bring consolidation of the industry in Australia, and this will be incentivised by the rounds of Australian government grants and bonuses available to increase local manufacturing,” Mamonitis said.

Full circle moment

Manufacturing in Australia, prior to the pandemic, used local raw materials with elements processed overseas before being imported and sold within Australia. The trend we’re starting to see, according to Mamonitis, is that instead of using elements processed overseas, manufacturers are looking for local alternatives.

“As manufacturing comes more and more on-shore, we’ll see that the global manufacturing industry won’t have as much emphasis on one country or one region,” Mamonitis said.

“The cost benefit of off-shoring certain manufacturing processes won’t stack up against the risk that poses when there are supply chain issues.

“Instead, the higher costs associated with manufacturing disruptions will see many Australian manufacturers looking to bring processes close to home. The risk versus reward business case will see local manufacturing as the more desirable choice.”

Benefits of local manufacturing

Mamonitis sees the end customer as the ultimate winner from the shifts in the manufacturing industry.

“Customers will benefit because quality control differs from country to country and keeping manufacturing on-shore will mean manufacturers have tighter reins on the quality of the end product,” Mamonitis said.

“Using ERP software, such as ECI Solutions, will also see local manufacturers able to respond quickly to fluctuating costs and be able to make decisions about whether they will absorb those costs or be able to manipulate the cost before it reaches the customers.

“So, again, the end customer will be the ultimate winner,” he said.

Tips for manufacturers

A strong ecosystem of solutions is available to manufacturers looking to thrive in 2024 and beyond. Mamonitis lists his top tips for manufacturers in readying themselves for a manufacturing future.

Tip 1

“Tap into ERP software, such as ECI Solutions’s M1 and JobBOSS², and the ecosystem of add-on solutions available,” Mamonitis said.

“Add-ons include things like CAD drawing, detailed spreadsheeting and analysis, a product called Alora that integrates with machines on the factory floor, using AI to ‘talk’ between those machines and the ERP software. These add-ons can tell the senior managers how efficiently the machines are being used and provide the data needed for management to make informed decisions.

“These add-on solutions allow a company like ECI Solutions to grow with our manufacturing customers and support our manufacturers from SMB to enterprise-level businesses,” he said.

Tip 2

A further tip Mamonitis gives manufacturers is to put in place the first step in their long-term success plan.

“Take the first step today,” Mamonitis said.

“Analyse your risk today and increase your automation and use of AI so that you can weather the risks of tomorrow.

“Risk will be every business’s number one consideration in doing business in 2024 and beyond.

“Rising costs such as utility bills, inflation hikes—risks like these will severely impact manufacturers if they don’t have their processes automated and are able to quickly access and analyse data to make informed and timely decisions,” he said.

“Manufacturers should not enter 2024 still throwing bodies at tasks that could be automated. That resource is better spent elsewhere in the business.”

Tip 3

Mamonitis also recommends manufacturers move away from spreadsheets and accounting packages and integrate ERP software instead.

“It’s time to use integrated ERP software, such as ECI Solutions’s M1 and JobBOSS², with add-ons such as Alora, to give managers access to real-time information that allows them to make the best decisions for their business,” Mamonitis said.

“At ECI Solutions we are first and foremost a manufacturing specific company that provides solutions to the most pressing challenges manufacturers have with their business processes. We use software to do this. We are niche to the manufacturing industry—we are not a software company that shoehorns manufacturing into its stable.

“We understand what manufacturers need and how to elevate their business in 2024 by providing automated solutions that give managers the visibility they need to do their jobs well,” he said.

Tip 4

Mamonitis’s last tip is to consider the opportunity cost.

“Manufacturers should consider the opportunity cost that comes if they keep using their people to fulfil manual tasks rather than automating processes that can be automated,” Mamonitis said.

“If manufacturers want to grow and thrive, they need to obviously grow their business and that means using their people to generate revenue rather than to stay stuck as manual labour.

“This isn’t easy, because if something needs doing and there’s a person able to do it then why not use them for that purpose? But this is a false economy. Manufacturers need to free people up to generate further revenue and to grow the business especially if an ERP software can save time and give managers the data to swiftly, in-real-time take advantage of new opportunities as they arise,” he said.

To implement this tip, manufacturers can consider ERP Software, such as M1 and JobBOSS² from ECI Solutions. Read more about how ERP can assist your manufacturing operation with real-time visibility of your inventory management and supply chains as well as being fully integrated with your financials.