Choose a financial automation technology option that has the capability for real-time, web-based calculations and data integration. Jedox

While automation has long been a cornerstone of the manufacturing industry, it has now pervaded nearly every business sector with its technological advances.

Most recently a rising need for automated processes is a direct result of the global pandemic. According to a recent BARC report on the future of planning, nine out of 10 companies still are not equipped with the proper tools to predict future events with any measure of reliability. Supply chain disruption, labour shortages, and market volatility have contributed to the urgency for digital technology to provide quicker response times and better forecasting capabilities.

Logistic challenges, such as truck driver shortages, have impacted the supply chain enormously. According to Trucking HR Canada, around 18,000 truck driver jobs needed to be filled by March 2022. Stephen Laskowski, president of the Canadian Trucking Alliance, said that number is estimated to rise to 55,000 by the following year.

The severity of such shortages influences every link in the chain, from raw material supplies to manufacturing to sales and marketing. This makes it even more important for your finance team to have an overview of these variables as budgets are planned for the future.

Advanced technologies such as artificial intelligence (AI) and machine learning (ML) allow for up-to-the-minute alerts when deviations occur, thereby helping businesses jump into action immediately. As rigid data silos make way for unified data structures, cross-functional teams require access to the same data in real time to pursue the same profit objectives. This approach ultimately has an impact on customer service and customer experience.

Given todays uncertainty, digital transformation is no longer just an abstract concept, but rather at the forefront of business strategy. CFOs have started taking notice as they confront the impact of the pandemic head on.

According to the 2021 Gartner CEO Survey, 83 per cent of CFOs claim that their digital investments are outpacing other areas such as talent, supply chain, business services, and fixed assets. In 2022 it is predicted that finance leaders will spend a majority of their time on improving budgeting and forecasting capabilities, digital competencies, financial data literacy, and finance-IT capabilities. In light of these developments, digital transformation is top of mind for leaders willing to invest in technology that will lead to better business performance.

Specialized tools now exist for internal and external accounting processes, but they commonly lack integration. They don't talk to each other, which means pieces of the puzzle are missing. The best modern systems have an open platform architecture that seamlessly integrates data from source systems and provides out-of-the-box models for finance departments. These software systems provide pre-built and easily customizable options to automatically prepare data.

All data and information for the organization's P&L, cash flow, and balance sheet calculations are linked, and all effects of changes to key figures are directly visible. This allows a uniform view and a quick start to planning, instead of spending days on preparation.

Standard reporting is another key area for finance department automation. This frees up even more time for the finance team that can be used for flexible analysis and additional calculations, either directly in Excel; via the internet; or with popular tools such as Microsoft Power BI, Qlik, and Tableau.

Digital transformationand its toolsshould be top of mind for leaders willing to invest in technology that will lead to better business performance. Jedox

Automating one of the least automated aspects of the metalworking industrythe office--means that your professionals have more time and resources to do what they do best instead of wondering if this quarter's budget is accurate.

Automation and smart data management offer a path to alleviate some of the supply chain disruption by providing real-time insights that lead to faster response times. When the sand shifts, business planners need to be able to pivot quickly. Automation is an important part of that process.

One manufacturing company in particular has gotten ahead of the curve. Headquartered in Aurora, Ont., Magna is a leading global automotive supplier with 347 manufacturing facilities and 90 product development, engineering, and sales centres in 28 countries. It has more than 154,000 employees worldwide.

In 2019 the company found it was drowning in data without the wherewithal to manage it. To improve the use of data resources, manufacturing companies such as Magna are quickly moving from physical to virtual and cloud computing environments. Even before the pandemic, Magnas team recognized the need to begin their digital transformation journey.

The challenge most manufacturing organizations face is the ability to collect massive amounts of data, analyze it properly, and quickly transform the data sets into actionable decisions.

Magna, for example, was plagued with time- and labour-intensive tasks to create and manage its budgeting process, which led to lengthy budgeting cycles. The company needed an upgrade.

It chose an option that had the capability for real-time, web-based calculations and data integration. It enabled the company to:

Magnas new system enabled easy knowledge transfer into its modern planning that can be used with Excel, a web-based service, or even on mobile devices. The move toward a digital strategy has saved the company valuable resources while providing decision-makers with agility, resilience, and improved business performance.

The companys advancements in embracing a solid digital transformation plan have helped the enterprise establish an all-inclusive data management ecosystem. As a result, the manufacturer continues to thrive even in the most difficult of circumstances.

A unified plan along with robust predictive analytics and forecasting capabilities are essential to meet the challenges of todays business environment. Manufacturers that embrace digital options will remain competitive in a tight market that demands fast action and decisions based on real-time insights.

Dr. Rolf Gegenmantel is chief product officer at Jedox, Bismarckallee 11, 79098 Freiburg im Breisgau, Germany, 49 761 151 47 0, info@jedox.com, http://www.jedox.com/en.

Excerpt from:

The transformative effects of automation - Canadian Metalworking