In this episode, The Manufacturer speaks with Andy Reid, Head of Product Marketing for ERP at Sage, about why supply chain resilience has become one of the defining challenges for manufacturers and how digital technologies are helping organisations adapt to an increasingly unpredictable world.
Andy argues that many of the pressures manufacturers have been navigating over the past several years are no longer temporary disruptions. The challenges are now permanent features of the manufacturing operating environment.
Higher energy prices, labour costs, transportation expenses and raw material costs have effectively reset the baseline for doing business, forcing manufacturers to rethink how they operate rather than simply waiting for conditions to improve.
The conversation explores how global events, from conflicts in Ukraine and the Middle East to wider economic uncertainty, continue to ripple through supply chains. Such events are driving up production costs while simultaneously weakening consumer demand. Andy explains why manufacturers are increasingly finding themselves caught between protecting margins and remaining competitive, with many businesses focused less on aggressive growth and more on maintaining stability in an exceptionally volatile market.
Against this backdrop, the discussion examines the practical strategies manufacturers are using to strengthen resilience. Andy shares insights into how businesses are diversifying suppliers, regionalising production, investing in stronger strategic partnerships and, where appropriate, bringing operations closer to their end markets.
Rather than relying on a single approach, he explains why resilience today is about balancing flexibility with trusted long-term relationships across increasingly interconnected supply networks.
A major theme throughout the discussion is the growing importance of data visibility. Andy outlines why access to accurate, connected business data has become the foundation for faster decision-making, enabling manufacturers to understand costs in real time, model future scenarios and respond more effectively when disruption occurs.
Andy also touches on the evolving role of ERP platforms, analytics and AI in providing a single view of operations, allowing organisations to automate routine processes while freeing employees to focus on higher-value strategic decisions.
Andy also gives his thoughts on one of manufacturing's biggest conversations - artificial intelligence. Rather than viewing AI as a replacement for human expertise, he makes the case for responsible, trustworthy AI that supports decision-makers without removing human oversight. He discusses the importance of transparency, governance and confidence in AI-driven recommendations, particularly in critical business functions such as compliance, planning and financial management, where trust remains essential.
Looking ahead, Andy offers his perspective on what a truly resilient supply chain could look like in the years to come. His vision centres on greater collaboration, stronger partnerships and a much freer flow of information between manufacturers, suppliers, distributors and customers. While acknowledging that many organisations are still some way from achieving this level of integration, he argues that building internal visibility and control over data is the first essential step towards creating more agile, responsive and future-ready manufacturing businesses.
The episode concludes by exploring Sage's role in supporting manufacturers through this transformation, from helping growing businesses gain greater operational visibility to introducing AI capabilities that prioritise trust, responsibility and long-term business value.
