Headless ERP Gains Popularity to Address Labor Shortages & Supply Chain Issues

Introduction

Supply chain issues and labor shortages are two of the largest obstacles facing manufacturers, and it’s impacting the bottom line. Nearly half of surveyed manufacturing executives said that they have had to turn down business opportunities because they didn’t have enough workers, in findings by the Deloitte and the Manufacturing Institute in March 2022 (IndustryWeek.com). To combat these challenges, headless ERP has become more commonplace for industries that conduct repetitive processes with low complexity. With automation, robots and other types of digitally connected machinery, headless ERP allows data to stream into the system without human input or intervention. As manufacturers continue to respond to supply chain issues and labor shortages, headless ERP will continue to grow in popularity with American manufacturers.

Supply Chain Struggles

Even as supply chain backlogs and global shipping container prices improve, manufacturers are looking for long-term solutions to address supply chain logistics. “There’s been a positive recovery. But we are never going to go back to the levels of stability that we used to have before COVID,” describes Sergio Gutierrez, CEO of freight logistics firm RPM (TheHill.com). Volkswagen CEO Oliver Blume agrees, saying, “Challenges to our supply chains will become the rule, not the exception” (TheHilll.com). Some American manufacturers are opting to bring facilities back to the U.S. to make their supply logistics easier and turning to automation to run factories with fewer low-skill workers. Robots and other types of digitally connected machinery complete simple, repetitive tasks and automatically input their data for analysis by the ERP system.

Responding to the Labor Shortage with Machine Integration

With labor shortages throughout manufacturing, companies are looking to headless ERP to support their assembly lines. Headless ERP allows businesses to collect large amounts of data efficiently without human intervention. For automobile and circuit board production, machine integration is already a necessary part of their rapidly paced assembly lines. When this technology includes automated data transfers instead of requiring someone to input the information, manufacturers can move faster and with a much smaller workforce. One Infor ERP electronics manufacturer, for instance, runs a new American factory with less than 50 on-site employees using automated data transfer from production machinery to its ERP (ERPNews.com). Headless ERP also impacts quality assurance capabilities. Another Infor user, a pump and valve manufacturer, added sensors to their products that automatically monitor the parts after they are sold to customers. The system notifies the manufacturer when maintenance or replacement parts are due, allowing them to sell these needed services to customers (ERPNews.com). This technology can also mine data to gain valuable insights on customer usage and behavior information.

Conclusion

Headless ERP gives manufacturers the tools and data they need to adapt their businesses. Like with any other new technology, setting up its system correctly is critical for success. Datix, an ERP solutions leader with over 25 years’ experience supporting automotive, electronics, fastener and other manufacturing clients, has your back. Our business-first approach means that we identify and create a tailored plan for each of our clients to maximize their investments. We work with our clients as a one stop shop for ERP and other software services, handling the process from the conception, implementation, and post-support phases.

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