A Manufacturers Guide

to Growing Profitably

Five success factors

and five risks
to prepare for
Whats Inside
Executive Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Its All About Growth. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Proven Success Factors to Help You Aim High. . . . . . . . . . . . . . . . . . . . . . . 6

Minimize Risk in Future Growth. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

All Systems Go. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Survey Methodology and Demographics. . . . . . . . . . . . . . . . . . . . . . . . . . 11

2 | A Manufacturers Guide to Growing Profitably

Executive Summary
A recent survey of almost 1,000 manufacturers conducted by MORAR on behalf of
Epicor1 reveals that most manufacturers expect to grow their business in the next 12
months. These findings were also identified by Aberdeen in their recent survey of global
manufacturers, which revealed that the number one challenge facing manufacturers
today is the management of growth expectations.2

This eBook and research identify five key factors The eBook concludes that, whether addressing
that growing manufacturers believe contributed risk factors or embracing growth factors, its their
to their business growth last year, and five risks IT systems that will make or break manufacturers
that manufacturers believe may prevent or weaken growth ambitions. With the right IT in place, theyll
growth in the following year. be able to make better and faster decisions, helping
them provide better and faster service to customers
Even if you do your best to try to plan for future even as they grow, increasing their agility and their
growth, there will be surprises along the way. This profitability.
eBook highlights the importance of being able to
plan accurately for growth, and suggests areas of
your business that you can critique to assess your
ability to effectively plan for growth. It also identifies
the risk factors and consequences that manufacturers
who dont plan for growth leave themselves open to.
Delivering top quality made-to-order solutions to
customers every time, and being able to do so, on an
increasing scale [] software has geared the business
up for growth and it keeps on giving.
Keith Nicholl, Business Improvement Manager, KMF

1
Source: Epicor Research, November 2015. See p.11 for full survey details.
2
Source: The Unified Manufacturing Environment: Transparency, Collaborations, and Decision-Making with End-to-End ERP, 2015, Aberdeen Group, Inc.

3 | A Manufacturers Guide to Growing Profitably

Its All About Growth
Whats your business growth priority this year? Our survey reveals that while
manufacturers have different priorities for growth in the next 12 months,
almost three-quarters (73%) do expect their business to grow.

Whatever your growth ambitions, your chances These challenges are compounded by the fact that
of achieving them will surely be increased with a significant amount of todays manufacturers just
effective planning. This eBook outlines five factors dont have easy access to timely, relevant information.
that manufacturers in our survey who grew last year Therefore, it becomes extremely difficult to continue
identified as contributing to their success. to operate, as well as make quick decisions to
support growth.4
Failing to plan is planning to fail
Yet clearly manufacturers do successfully grow,
The road to growth isnt always a smooth one. despite these challenges: almost two-thirds (62%)
Aberdeen research suggests that When a of our respondents reported achieving growth in
manufacturer grows, it becomes increasingly difficult the past 12 months. In this eBook youll discover
to keep costs in check, maintain efficiency and how you can overcome those risks manufacturers
customer service, and present an organized front.3 identified as threatening growth in our survey.

Our survey agrees, highlighting a range of risks

that manufacturers believe threaten their growth
ambitions. As the Aberdeen paper further points
out, these issues are exacerbated if growth is largely
unplanned:

Source: Grow Your Manufacturing Operations by Selecting Easy-to-Use ERP, 2015, Aberdeen Group, Inc.
3

Source: Grow Your Manufacturing Operations by Selecting Easy-to-Use ERP, 2015, Aberdeen Group, Inc.
4

4 | A Manufacturers Guide to Growing Profitably

 Technology as a key
enabler of growth
82% of our respondents agree that an
effective and integrated IT infrastructure
is essential for business performance, a
sentiment echoed by Gartner research:
The 2015 Gartner CEO and senior
business executive survey found that
With Epicor we have the
growth remains a top priority, and technology in place to
technology-related change is viewed as realize our growth ambitions
the primary tool to achieve that growth and double our turnover
in 2015 and 2016.5
within three years.
At the end of this eBook, well consider
Annemarie van Aerts, Deputy Director,
the role of technology in helping achieve BKB Precision
growth.

Source: Gartner CEO and Senior Business Executive Survey Shows Technology
5

Related Change is a Higher Priority Than Ever Before, 2015, Gartner, Inc.

5 | A Manufacturers Guide to Growing Profitably

Proven Success Factors to Help You Aim High

60 %
Our survey uncovered five factors that manufacturers who reported growth in the past 12 months said were essential to their success:

Its no surprise that hard work and determination made the list, but the remaining four factors give
you a starting point when determining whether your organization is set for successor whether
Good planning (60%) theres room for improvement.

60 %
4253 % %
Hard work and
determination (48%) Agility and response
Good planning to market demand

Whether youre forecasting, planning production or As global competition increases, responding to

Agility and response to
even making split-second decisions, having ready customers and quickly adapting to market changes
market demands (42%)
access to accurate and timely information is key. are essential to staying ahead.

42 %
4852 % %
Without the right data: A lack of agility can lead to:

Right technology in place (40%) XXIts difficult to fully understand whats happening XXStagnation, lost revenue, and missed
in your business, leading to mistakes and bad opportunitiesas your business is unable to add
decision-making new products and services or enter new markets

XXFinancial reporting and decision-making is slower XXLow customer satisfaction and lost customers as
Staff with the right skills (38%)
and harder your staff struggle to provide fast and responsive

48 %
4050 %
service

6 | A Manufacturers Guide to Growing Profitably

 42 %
48 52 % %
50

48 %
40 50 % %
We have the ability
to look at forecasted
sales and translate that
49
into discreet demand
on the shop floor.
That helps us not only

The right technology 40 % Having staff

with the right skills 38 49 % %
balance production
and scheduling to
improve on-time
50
IT is driving business growth everywhere, and its no Holding on to skilled staff is essential, as is the ability delivery, but also to
exception with manufacturing. Without the right to quickly and efficiently onboard new staff to help
technology, it doesnt matter how hard you work: support business growth.
make sure the proper
resources and growth

38 %
50 %
XXOutdated, standalone systems and organizational But these things are never easy. All too often: plans are in place. We
silos can waste time and energy
XXYou spend too much time and money on
werent able to do that
XXScaling operations and innovating within your recruitment, and employees struggle with your prior to Epicor ERP.
business can be a challenge, limiting growth complex systems, which may lack desirable
Rob Bucek, Production Control Manager,
potential features such as mobile access
D&S Manufacturing

XXMaintaining control, quality, and customer intimacy XXKey people leave before you can replace them,
can become increasingly difficult as staff numbers, draining the knowledge and expertise within your
transaction levels, and geographic reach grow organization

7 | A Manufacturers Guide to Growing Profitably

Minimize Risk in Future Growth
%
60
Growth can quickly overwhelm the unprepared business. Our respondents identified five
53 %
risks that those who choose not to plan for future growth may leave themselves open to:

42 53 52
Business growth may put excessive

% %
60 % %
pressure on operations, damaging
quality and customer satisfaction
(53%) Business growth may We might take on large/
put excessive pressure on operations, complex projects that we lack the skillset and
We might take on large/complex
damaging quality and customer satisfaction technology to deliver effectively, and damage
projects that we lack the skillset
our brand reputation
and technology to deliver If your operations arent geared up for growth,
effectively, and damage our your factory floor could run into difficulties: If you cant get the right information to the right

42 %
48 52 % %
50 %
brand reputation (52%) people at the right time, increasingly large and
XXOverall equipment effectiveness (OEE) and complex projects may take a toll on your business:
Senior executives in the business
throughput may fall, scrap may increase, and
may not be fully prepared for the
manual data gathering processes may hamper XXOperational silos and staff burnout may reduce
challenges of managing a larger,
productivity operational capacity and damage customer service
more diverse business (50%)

XXSlower service will reduce customer satisfaction XXAn inability to plan, manage, and analyze
Unplanned business growth may prompting defection to competitors greater or more complex workloads could reduce

48 40 50 49
lead to unexpected consequences

% % % %
operational efficiency
which would have a negative
impact on the business (50%)

Workloads may increase to a

level that places too much
pressure on staff, prompting
key people to leave (49%)

40 %
8 | A Manufacturers Guide to Growing Profitably
38 49 % %
50 %
 40 52 % %
48 49 % %
50 %

38 50
Senior executives in the
%
business may not be fully prepared
%
40 50
Unplanned business
%
growth may lead to unexpected consequences
%
Workloads may increase 49
to a level that places too much pressure
%
for the challenges of managing a larger, which would have a negative impact on the on staff, prompting key people to leave
more diverse business business
If you cant help your employees manage their
If senior management cant couple an overall view In fact, only 12% of respondents who grew growing workloads, the pressure theyre under

49 %
38 %
50 %
of the business with the ability to make good last year did so totally according to plan. could start to show:
decisions quickly, they may struggle:
Even the best plan is unlikely to account for XXEmployees could spend more time on manual
XXLack of real-time and relevant information will everything, but manufacturers who dont plan for processes and less time on value-added activities
likely force executives to rely on gut-feel for growth will typically find that problems occur more
decisions oftenand take longer to resolve: XXDifficult-to-use systems often leads to increased
frustration for your staff, reducing morale
XXDisparate systems with no mobile access can XXWithout accurate forecasts you may not be able

50 %
make management harder and less agile, to prepare for growth
especially for global manufacturers
XXIf it cant respond quickly when unforeseen
opportunities arise, your business may lose those
opportunities to competitors

XXThe other risk factors identified in the survey will

be compounded by the fact that you have no
strategy in place to manage them

9 | A Manufacturers Guide to Growing Profitably

All Systems Go
Our survey results show what manufacturers view as the secrets to their success, and the
potential obstacles to future growth. The common theme across all of these findings is
that technology will make the difference between success and failure for manufacturers.
The right IT systems can help your business plan for growth productively, and make
the business agile enough to handle whatever opportunities next year throws at it.
Ultimately, a manufacturers choice of IT systems can impact how far, and how fast, they
can grow profitably.

Time to take a critical look at your environment We hope that this eBook gives you a fresh
perspective on the opportunities and challenges
Having the right ERP system in place will help growth can bring, and helps you identify areas where
you stay ahead of the curve. Its worth asking key investment and modernization might be prudent.
questions of your IT environment to ascertain Visit our growth resource center to find content that
whether it can support your growth plans: can help you further understand how you can use
your IT investment to fuel growth.
XXCan you get instant access to accurate, real-time
data and grasp new opportunities fast?

XXDo your systems support the way your employees

work, or are your employees working around your IT systems should be considered a companys most
systems?
important investment. An outstanding IT system is
XXCan you get a view of your entire organization critical for a companys business growth. IT systems
to spot opportunities for improvement and directly affect a companys business decisions, product
optimization?
quality, and employee efficiency.
Alain Seyeux, Managing Director, Ensival Moret

10 | A Manufacturers Guide to Growing Profitably

Survey Methodology and Demographics
The 2015 research, commissioned by Epicor and conducted by MORAR, is based on
interviews conducted with more than 1,800 individuals in a variety of industries.
This eBook (and the demographics below) focus on the manufacturers we spoke to in
our survey.

Manufacturer split by country: Manufacturer split by size:

4%
19%
Sweden

France 4% 100-249 employees

Australia 4%
Canada 5%
20% China
(inc. Hong Kong) 24%
250-499 employees

Singapore 7%
Mexico 7% 19% USA 29%
500-999 employees
India 8%

United
Kingdom 11% 11% Germany
28%
1000+ employees

11 | A Manufacturers Guide to Growing Profitably

About Epicor
Epicor Software Corporation drives business growth. We provide flexible, industry-
specific software that is designed around the needs of our manufacturing, distribution,
retail, and service industry customers. More than 40 years of experience with our
customers unique business processes and operational requirements is built into every
solutionin the cloud, hosted, or on premises. With a deep understanding of your
industry, Epicor solutions spur growth while managing complexity. The result is powerful
solutions that free your resources so you can grow your business. For more information,
connect with Epicor or visit epicor.com.

Contact us for more information on Epicor Products and Services

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