The supply chain procedures and systems utilized by numerous firms haven’t evolved much in generations. But supply chain executives require solutions that can deliver quantifiable and substantial benefits – and can offer them swiftly – at a time when consumer demands and economic uncertainties are both at an all-time peak. There is an opportunity for significant business benefits for businesses that engage in digitalization and smart manufacturing technology, including
#1 Productive output and efficiency:
Throughout history, manufacturing has mostly revolved around reacting — looking at an incident or a pattern that has already occurred and then attempting to guide the company in a different way after the facts.
In order to eliminate the requirement for reactive activities and shift supply chain management toward a more adaptable and proactive phase, smart manufacturing technology was developed. Big Data analysis and predictive analytics enable the identification and implementation of efficient procedures.
Among the operational advantages that intelligent factories offer are enhanced time-to-market, precise sales forecasting, and just-in-time inventory control. The employees in smart factories are able to simplify their tasks with the help of digital insights, which raises the operation’s productivity as a whole.
Deloitte claims that after investing in smart factory projects, “Companies report up to 12% increases in areas including manufacturing production, factory utilization, and labor productivity.” Furthermore, smart factories will probably outperform conventional manufacturing by 2030 thanks to a 30% higher net labor productivity.
#2 Sustainability and safety:
Customers are increasingly willing to pay a little bit more for goods they are confident were sourced and produced in an ethical and environmentally conscious manner. Businesses may now more easily than ever recognize and implement possibilities for greener, safer, and socially conscious manufacturing methods. This is because of the development of modern smart industrial technologies.
Smart factory managers can employ technological advancements like Blockchain and RFID sensors to guarantee the unquestionable traceability and quality assurance of all materials and supplies, regardless of where they originate from the supply chain. And pretty close to home, according to the International Society of Automation, three out of the top five reasons for workplace fatalities can be decreased or completely eliminated with the aid of robots and other automated devices.
#3 Quality of the product and consumer experience:
Conventional manufacturers often struggled to make sure their instructions were correctly understood and carried out by the lowest tier suppliers and manufacturers in their supply chains, much like the children’s telephone game. All stages of the manufacturing process receive real-time data and recommendations in the smart factory thanks to cloud connectivity and end-to-end visibility.
Products can be quickly customized and updated to reflect changing trends, keeping them close in line with consumer preferences. Sophisticated system data analysis immediately identifies flaws or potential improvement opportunities. As a result, the market is more dynamic, the product gets better evaluations, and there are very few pricey returns or recalls.