The challenges and opportunities for manufacturing CFOs now and in the future

Mark Wilson, Chief Executive Officer at SYSPRO EMEA&I

Integral to the success of a business is the chief financial officer (CFO), whomust navigate the current complexities of Covid-19, while ensuring company is equipped for the Fourth Industrial Evolution (4.0) of the future.

In a survey for the Syspro Manufacturing CFO 4.0 Series Campaign – which questioned CFOs about their business situation and role in the future – 47% of businesses had recovered by the end of 2020. A further 30% expected to recover by the second quarter this year, with a fifth only foreseeing recovery in the longer term.

Despite this business confidence, the impact of the global economic downturn is a concern for 70% of CFOs, with half worried about global supply chain distribution. To drive recovery, manufacturers are seeking opportunities such as new revenue streams (44%) or concentrating on the timing of investment decisions (41%).

Steps taken by manufacturing CFOs in the current climate

CFOs are also taking steps to support employees in a changing workspace. In the report, 71% of CFOs are restructuring and investing in skills and training of employees, with almost three-quarters of the CFOs upskilling their employees in the next five years. An agile workforce prepared to adapt with the aid of technology offers enormous potential to increase productivity and therefore revenue.

The role of CFOs in the future

While financial management remains important for CFOs, with 70% listing maintaining margins and 68% managing cash flow as top priorities, their role in manufacturing is also to optimise processes for sustainable returns.

As industry gears up for 4.0, technology provides data-driven insights that support business growth and strategy. The survey cites 40% of CFOs wanting to improve visibility, where data analytics make this easier. CFOs say they will continue to invest in BI, ERP, CRM, and warehouse automation solutions in the next five years, to build a more efficient business model, where SYSPRO can advise on technology suited to a company’s needs.

The transformation to a more digital future combined with economic challenges means CFOs must adapt their own skillset if they are to keep ahead. No longer just a numbers game, 78% of CFOs believe that strategic business knowledge will ensure the business stays competitive. The ability to build predictive models and accurate insights into managing risks into opportunity - cited by 62% – will give CFOs a leading edge.

CFOs remain confident that businesses will recover from the Covid-19 crisis, but this will not be without its challenges. Strategic shifts in investments in the company, including accelerating digitalisation and upskilling a flexible workforce, and themselves, can help to ensure success.

An agile workforce prepared to adapt with the aid of technology offers enormous potential to increase productivity and, therefore, revenue.