The large part of the ascendancy of the Ethiopian economy can be attributed to the manufacturing of goods from crude resources, such as transforming livestock into processed meat and exporting them. But the value addition process hasn't been making a lot of waves until recent years. That's where production comes in.
Production can be classified as "the means of creating utility (output) out of the resources that are available to us (so inputs)".
Steady at first
Once big foreign industries started setting up their production plants, they saw the huge demand the consumer market was showing. Soon after, local industries set up share companies and established themselves in sectors like water bottling, agro-industry, steel fabrication and more.
As the number of production factories grew, the old way of doing things (tracking expenses on paper, logging sales revenue on spreadsheets and using a very simplistic stand alone accounting software started to plague the growth of this company hopefuls.
Demand is still growing today but the management of operations has hindered any type of straight line growth for those involved in the production industry. Big details like Minimum Reorder Points, Production output capacity, Bill of Material, Fixed Asset Management are not considered in most cases.
Ethiopia's manufacturing sector has been showing signs of establishing trade relations with the outside world. The production sector is vying to take a share too. As quality increases, export of finished goods will take center stage.
The potential that lies ahead
Part of the gap that we see in the Production sector is visible in manufacturing. There are so many inputs and with a steady and increasing demand, the operation side is forced to work with its inefficient process.
With the Sparta ERP, we can help you identify the major expenses, classify your fast moving inventory and help you calculate the cost of production for every finished good.
This information is vital not only for the facilitating day to day transactions, it adds a big layer of control when it comes to reporting, audit which in turn leads to better decisions being made.