Connected manufacturing is a business strategy that enlists cloud computing to make use of operational and business data for greater visibility, efficiency, control and customer service. This strategy will be a key factor in determining which businesses are able to thrive in the future. As more and more companies adopt a connected manufacturing approach, utilizing technology such as manufacturing ERP software, the more industries rely on (and customers expect) automation, digitization and data usage. Businesses that don’t harness the many benefits of connected manufacturing are likely to fall behind.
Benefits of Connected Manufacturing
With manufacturing becoming more and more part of the digital economy, the expectation to work faster while delivering better quality and customization is also increasing. Thankfully, a connected manufacturing strategy addresses these needs.
The primary benefits of connected manufacturing include:
- Cost Savings – Do you often have excess inventory or too much scrap? Is customer demand hard to predict? ERP software allows businesses to connect their operations and acquire valuable business data to make more informed, cost-effective decisions.
- Visibility – When you connect your people, processes, production and supply chain, you have full visibility and control. You know what’s happening in real time, and you can act in real time when adjustments need to be made.
- Productivity – You’re not only able to utilize financial resources better, but personnel and time as well. While many fear that connected manufacturing and the use of smart software will result in job loss, Industry 4.0 technologies aren’t about replacing humans. They’re about helping personnel be better utilized and therefore more productive.
- Automation – With the right software, businesses can leverage automation to eliminate mundane tasks so staff can focus on more fulfilling and revenue-driving endeavors.
- Customer Satisfaction – When your business is running more smoothly and efficiently, your responsiveness, quality and service improve, and your customers notice.
- Mobility – Thanks to cloud computing, users can access systems anywhere, anytime via mobile devices, saving time and allowing key people to stay connected.
- Analytics – Data can make all the difference in the success of a business. When you can’t see that you have a problem, you can’t fix it. Having real-time and historical data empowers businesses to respond more quickly to issues and make more accurate strategic decisions.
Benefits of Connected Supply Chain Management
A critical part of connected manufacturing is having a connected supply chain. A connected, end-to-end supply chain provides comprehensive visibility across a manufacturing enterprise, its suppliers, customers, carriers, outsource partners and other trading partners. Integrated supply chain operations and management help manufacturers better anticipate customer requirements and supply chain demand.
Utilizing connected supply chain strategies increases responsiveness and intelligence across the supply chain. Enabled by real-time data collected from and shared with supply chain partners, manufacturers gain a rapid and more intelligent approach to supply chain decision making. When manufacturers optimize supply chain connectivity, they gain insights required to avoid supply chain disruptions and exceed customer expectations with the comprehensive collection of operational supply chain data.
Why Connected Manufacturing is the Future
Though you may feel like your business is steady right now, change is constant to remain relevant. As we move toward Industry 4.0 and beyond, the increase in shop floor automation, additive manufacturing, cloud computing, analytics, mobility and the use of the Industrial Internet of Things (IIoT) is only becoming more prevalent. Adopting a connected manufacturing strategy now puts businesses at a greater advantage when inevitable industry changes occur. Connected manufacturing provides an agility and adaptability that gives businesses a competitive edge and puts them in the position to make informed, strategic decisions. Businesses that wait for more direct indicators that it’s time to adopt a new approach will be further behind those adapting to change right now.
Creating a Connected Manufacturing Environment
To create a connected digital environment, start with a system that allows for efficient collection and sharing of data. Smart manufacturing runs off valuable data. Enlist an enterprise system that offers instant data visibility in real-time that’s easy to access, and analyze data collected in ways that generate real business value. Also, connect your enterprise to Internet of Things (IoT) technology and other collaborative platforms to optimize traceability, plant maintenance and overall integration. This breaks down silos and maximizes benefits across all of your manufacturing teams.
As we delve further into Industry 4.0 manufacturing adoption, the need for connected manufacturing will only become more necessary to business success. To maintain a competitive advantage, the time to review your own connectivity and processes is now. If you’re ready to discuss how connected manufacturing solutions can help your business prepare for the change ahead, QAD can help guide your journey.
