ERP for the Manufacturing and Utility Industries
713-680- ABIS (2247)

6 Tips to Maximize your Profits

6 hidden obstacles that ruin your business efficiency

6 Tips to Maximize your Profits

In a hyper-competitive environment, such as the manufacturing industry, marginal gains are often decisive to set a company apart from the competition. While managers spend most (or all) of their time working on aspects that directly affect productivity, they neglect to pay attention to hidden obstacles that can, however,  ruin all their previous efforts.

What is a hidden obstacle?

A hidden obstacle works in opposition to a direct obstacle that affects productivity on the first degree. Production level running 30% below full capacity, increasing maintenance costs per machine, workforce needing 2 to 3 weeks of training or unoptimized processes are examples of direct obstacles to productivity. In the manufacturing industry, managing those aspects is not optional, it is vital for a business to generate positive margins and benefits.

Read Also: If you’ve always done it this way, you’ve always done it wrong.

However, as the business grows, hidden obstacles start to appear here and there and undermine all the hard work generated to maximize productivity. While managers and executives focus all their energy to optimize processes and workflows, companies don’t realize that the business doesn’t run as smoothly as before. Getting accurate information about the business is becoming harder, they use multiple software for different processes and end up juggling between operating systems that report corrupt and duplicated data. Those are the hidden obstacles to productivity, they don’t have a direct impact on the efficiency of the shop floor, but they prevent businesses to operate seamlessly. Inaccurate data prevent managers from taking informed decisions, accounting takes days or weeks to put together instead of hours, the complications are many, and drip down all over your organization. Here are the 6 most common hidden obstacles that impact your business efficiency.


6 most common hidden obstacles:


Bad Data

Occurs when the data is inaccurate, missing, or in an unreachable format. It either tells the wrong story of what is actually going on or an outdated story of the business

Lack of Informational Access

When modules and functionality within the business are not seemingly integrated, therefore information is scattered; resulting in loss of efficiency

Inefficient Data

Occurs when the same data needs to be input multiple times. This not only allows errors, it also decreases productivity on the entire workforce

Long and Strenuous Accounting

Traditional accounting requires multiple inputs of information from different areas within a business. Without a software that automatically syncs all the information into one centralized database, the day to day accounting negatively affects productivity

Multiple Software Packages

Happens when a business has a different software for each department of their company, making it more difficult to integrate all the data

Misinformed Sales Team

Using a separate software for sales, production, shipmen, and accounting can and will jeopardize customer relationships. When teams lack important information, missed opportunities happen. This impacts the entire business sales process

Read Also: How to Choose a Manufacturing ERP Software?

About Author

Simon De Brito

I support Marketing Operations at ABIS, Inc. We are making industrial businesses smarter by automating their processes to gain productivity, increase margins and generate more profits.

Write a Reply or Comment