With the timeline for economic recovery still uncertain, distributors and manufacturers are still looking for ways to cut costs, according to RSM McGladrey's fourth annual Manufacturing and Wholesale Distribution National Survey. But those cuts may be coming at a cost, particularly as they relate to information technology (IT).
Of the more than 920 executives responding to the survey, almost 90% reported that IT is a critical component of their business operations." At the same time, about half said they are holding off on upgrading systems or enhancing programs already in place to keep costs down.
In the press release about the result, RSM McGladrey wrote: "This type of short-term action may prevent companies from realizing the benefits IT systems can offer."
Cutting costs everywhere is understandable and necessary. However, companies need to avoid tunnel vision to be prepared for the recovery that will come. Not only could now be a good time to streamline business with technology, but with business slower it could also be good time to train employees on how to use it.
What are your thoughts on the role of technology in the current economy?
Related from MDM:
Survey: Wholesalers, Manufacturers Expect End of Year Recovery
Special Report: The State of the Distribution Software Market
Pushing Ahead With a Warehouse Management System
Technology Case Study: Automating Processes