Sage is a partner at this year’s Manufacturing Leaders’ Summit in November and prior to the event, The Manufacturer sat down with Andy Reid, head of Sage’s ERP Product Marketing, who works with customers in the areas of manufacturing, distribution and retail.
He discussed some of the key topics that will be covered at the upcoming summit, such as regulation and compliance, supply chain and cost management, digitalisation and workforce, providing insights as to how Sage can be a partner to help.
Regulation and compliance
Influence on production processes
Regulations are rapidly evolving for the benefit of both the consumer and those in the supply chain.
“Regulation will drive forward understanding around material source production processes, and the various measurements and metrology involved in that production process,” explained Andy.
This is the right thing to do. Consumers demand greater understanding around what they’re buying, how’s it been made and where parts have come from. “Situations may occur where a recall may be required and, in that instant, producers need to be able to know exactly where that batch has gone and how to bring it back,” he added.
For Andy, it has been interesting to note how manufacturers are responding to regulations, which falls back on the people, processes and technology that make it happen. “You need all three for that assurance and clarity within the supply chain should an issue occur,” he said.
Role of digital tools in sustainability
Traceability is key and manufacturers need to be able to understand every batch and what individual parts constitute its make-up. “Having an ERP system at the heart of production, which understands the methods and processes used, will be able to trace individual ingredients back to their source, for example in food manufacturing,” said Andy.
In addition, when it comes to ESG, the energy used in production plays a major role in both cost and sustainability. “It’s important to consider where the energy used to manufacture a product comes from, how much is needed, and whether production happens during high- or low-demand periods, as these factors can affect efficiency and the final product,” said Andy.
An example of this is the cost of glass, which has risen sharply in recent years. Many European glass manufacturers have faced higher energy costs as they moved away from traditional gas supplies to alternative, more expensive energy sources. As a result, glass prices increased, which in turn drove up wine costs – not because of higher production margins or better-quality wine, but due to more expensive packaging materials.
“Having technology in place to mitigate these events would provide manufacturers with the ability to understand how the inputs into the production process are making a difference to the final product. The dashboards available with ERP systems are a way of visualising that data and enable businesses to monitor any changes that occur,” he explained.
If you have sensors monitoring the increase in temperature in a batch, for example, you can receive an early warning signal and a notification if a batch is falling short of the required standard. “This monitoring allows you to make adjustments before getting to the situation where you waste an entire production run,” said Andy.
Supply chain
Disruption vs cost
Continued geopolitical and economic disruptions have contributed to changes in where manufacturing is taking place worldwide. “We’re seeing more reshoring in the UK and European markets, and this comes with diversification in the supply network as well,” said Andy.
An example of this could be a particular widget that a company sourced from one supplier for the last 20 years, but now requires two or three different companies, across two or three countries. “That could be the critical piece in delivering your product on time and on demand” he explained
“We speak to manufacturers all the time and they’re not concerned with demand right now. Their biggest issue is being able to get the materials they need to produce their products; they recognise that the moment you don’t deliver, you risk losing customers,” Andy added.
Digitalisation aiding supply chains
Manufacturers are smarter with waste – whether that is product or energy – and key to this reduction is stock management. Manufacturers need to know they have enough inventory to produce what they need.
One of Sage’s customers, Majestic Wines, implemented Sage X3 and saw a 50% increase in productivity and production efficiency. “This showed clear proof of how automation can streamline operations and reduce reliance on manual processes that can sometimes slow down the supply chain,” said Andy.
However, contrary to the beliefs of some naysayers, the goal of automation isn’t to eliminate human involvement. The focus for manufacturers is to balance automation with human contribution and keep people at the centre of production. “Humans play vital roles, but we can utilise technology to ease workloads rather than replace workers,” he added.
Maintaining profitability
To Andy, rising trade costs, including tariffs, have put pressure on export margins for manufacturers. “The UK exports around 45% of its goods. Those additional costs have a clear impact on the profitability of the country’s manufacturers and distributors,” he said.
Broader economic pressures such as inflation, higher operating costs, and wage growth are also adding to the challenge.
“It’s these combined factors that are creating the toughest conditions for manufacturers in recent years,” Andy added.
Digital transformation
Main barriers to digital transformation
The UK continues to trail parts of Europe in adopting robotics. “The key issue is ensuring quality and consistency. For example, motorised pallets can now move goods around a warehouse, reducing the need for people to handle heavy loads manually,” said Andy. This isn’t about replacing people – it’s about using automation to handle repetitive or physically demanding tasks, so employees can focus on higher-value, more rewarding work.
There are also software challenges when it comes to digitalisation. Many manufacturers still need to transition to cloud-based systems to sustain growth. “One UK brand we work with expanded rapidly from a direct-to-consumer model to supplying major supermarkets but relied on homegrown systems that couldn’t support further scalability. While these setups can work initially, they lack the ability for further expansion, automation or to handle complex requirements like multi-currency operations and ESG reporting,” said Andy.
By adopting solutions like Sage X3, businesses can gain access to robust, scalable tools built from real industry feedback. This collaboration allows Sage to continuously evolve its software offering for the entire market, enabling customers to focus on their core strength – manufacturing products for their customers.
Benefits from adoption
Andy believes AI will be critical to manufacturers in the future. Key benefits of technology includes:
- The ability to foresee issues before they happen
- Spot outliers in production data
- Simplify forecasting models
- Alert to troubles in the supply chain
- Helps to free up the time of humans to do more value adding work
- Enable proactive and honest dialogue with customers
“It’s an exciting time and AI is behind that. However, it is critical that the information comes from a trusted source and the industry needs to be transparent in where that information comes from. AI is there to help us, not to replace us, and it’s something we need to keep in mind when building that into our systems.”
Automation adoption
The UK has many great networks for manufacturers which can bring innovators together in production. They can learn from others about how to integrate automation into their current processes.
“The government needs to coordinate that innovation in a structured way. We’re all trying to create goods for export, and while there are differences, we’re all facing the same challenges. If we work together, we can solve the issues around globalisation, shortage of labour and skills, and the need to digitise more efficiently,” said Andy.
Workforce
Tackling skills shortage
UK manufacturing employs around two and a half million people with wages typically ten per cent above that of the national average, which should make it an attractive sector to work in. However, the issue is with image rather than salaries, and the stigma of dirty factories and greasy overalls still persist in the minds of many young people and crucially, their influencers, e.g., parents and teachers.
“We need to change those misconceptions so that the younger generation see the opportunity to be fantastic innovators, technology engineers and grow into an environment that is science and engineering driven. But we need funding to allow that to happen,” said Andy.
Transformation by automation
The new generation coming through the manufacturing workforce have a different outlook to what has gone before. “The new workforce is moving beyond mobile devices; they’re looking for immersive, visual-based tools like Meta’s Ray-Ban smart glasses and digital twins displayed on tablets or through augmented reality. This is also how they are interacting with data and systems,” explained Andy. The way people are engaging with technology has changed, moving from keyboards and screens to natural language models and consumer-first technologies.
Sage X3
Evolving with manufacturers
As manufacturing continues to evolve, digital transformation remains at the heart of progress. From enhancing traceability and compliance to improving supply chain resilience and workforce engagement, technology is reshaping how manufacturers operate.
As Andy Reid highlighted, Sage’s mission is to be a trusted partner, helping manufacturers innovate responsibly, stay competitive and build a future where people and technology work together to drive smarter, more sustainable production.
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