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How COVID-19 is impacting the Manufacturing Sector?

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The lockdown has caused a lot of disturbance in our day-to-day lives. However, for the better health and security of the people, it is important to follow social distancing and co-operate with the government. As per the current guidelines, the manufacturing companies can partially operate and how manufacturing ERP software can help.

COVID-19 impact on the Manufacturing Sector

  • Due to the suspension of public transport services, employees aren’t able to reach factories. This has led to the temporary shutdown of plants.
  • Companies are paying full salaries to their employees even if they aren’t coming to the office.
  • Though work from home has been advised, it is not possible in supporting some essential services such as the manufacturing of mobile phones, automotive parts, electronic components, etc.
  • The COVID-19 impact on the manufacturing sector has been tremendous. About 30% of construction workers have migrated to their villages and are least likely to return any soon.
  • Manufacturing companies are maintaining skeletal work forces to ensure that plants don’t completely shut down as they need ‘continuity of process’.

Also Read: Top 10 Reasons to Adopt CRM for Manufacturing Industry

How can manufacturing ERP software help reduce the COVID-19 impact?
  • It maintains a list of verified secondary material vendors that can supply raw materials in the absence of the primary vendor.
  • Similarly, it maintains a list of secondary supply-chain vendors that can transport finished products from source to destination.
  • It meticulously checks the quality of the raw materials and ensures that they meet the guidelines set by the product quality expert.
  • Manufacturing ERP software creates, maintains, and tracks the Bill of Materials (BOM).
  • Helps switch to comparable raw materials at times when primary raw materials are unavailable.
  • Has rigorous algorithms to check the presence of harmful substances – dangerous chemicals, illicit materials, and adulterated components- and restrict their entry into the supply chain.


Manufacturing businesses worldwide have been cash-strapped due to COVID-19. Experts say that if the conditions persist, even big manufacturing companies will see a steep downward curve in their profits. The only visible solution out of this mess is the ERP software. At Sage, we are home to world-class manufacturing ERP software that will help you run your enterprise like a pro in times of crisis. To know more about it, you can also write to us at


Disclaimer: All the information, views and opinions expressed in this blog are those of the authors and their respective web sources and in no way reflect the principles, views or objectives of Sage Software Solutions (P) Ltd.

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