Oct. 2, 2024
This paid piece is sponsored by Eide Bailly LLP.
A version of this insight first appeared on EideBailly.com.
Manufacturers have continued to face a fluctuating marketplace fraught with challenges. Fortunately, resilience in the industry has led to optimistic outlooks.
Through the use of advanced tools and capabilities powered by artificial intelligence and Industry 4.0 technologies, manufacturers can reduce vulnerability, improve efficiency and utilize real-time data to drive decision-making.
Here are major tech trends for manufacturers to consider — and ways manufacturers can design their digital future in a way that will best position them to harness everything innovation has to offer.
1. Artificial intelligence
Artificial intelligence is a mainstream reality for the manufacturing industry. The Manufacturing Leadership Council found that 96 percent of manufacturers plan to increase AI operational investments by 2030.
Today’s AI functionality case be used across a wide range of applications, including:
- Production line scheduling.
- PDF scanning for administrative task automation.
- Predictive maintenance on equipment.
- Quality control.
- Supply chain forecasting and demand planning.
- Personalized manufacturing.
And with new generative AI capabilities, it will be possible for manufacturers to have conversational interactions with machines, enabling natural language troubleshooting.
AI has numerous benefits, including cost reduction, enhanced decision-making and improved productivity.
Despite the benefits, however, almost half of manufacturers still categorize their AI usage as experimental. This signals a significant growth area for manufacturers to tie AI into their existing digital modernization strategy.
2. Cloud-based analytics, optimized systems
The convergence of AI, machine learning, cloud-based analytics and real-time data from embedded IoT sensors and connected devices helps create better visibility into the entire supply chain — including everything from the production line to materials, suppliers and transport, as well as customer behavior.
More than seven in 10 manufacturers are planning to invest in Industry 4.0 technologies. After all, more connectivity and predictive analytics make it possible to plan for potential scenarios. The result is increased proactivity, coupled with optimized systems and collaborative tool options.
3. IoT: Smart factories, warehouses
The steady stream of real-time data that IoT sensors provide has made it possible for both warehouses and factories to streamline processes. This has reduced or eliminated wasted time and effort, all while enhancing worker safety.
Applying insights from machine learning to IoT data makes it possible to adapt and improve processes continuously while also empowering more informed strategic choices for the future. For example, AI-derived insights can help you make better decisions about stocking and organizing warehouses to improve speed and efficiency.
4. Supply chain management, visibility
On a big-picture level, an integrated approach that leverages cloud-based analytics and intelligence provided by IoT sensors helps you visualize your entire supply chain from beginning to end — so you can spot inefficiencies and identify areas for improvement.
One of the most important keys to a more robust and resilient supply chain is better collaboration and data-sharing between partners and suppliers — a capability that’s increasingly emphasized in the newest and best supply chain technology solutions. Proactively mitigating supply chain risk and optimizing your technology partnerships can save you time and money in the long run.
5. Robotics, automation
Integrating robotics and automation into production processes will continue to improve efficiency not only by helping to fill labor shortages but also by freeing up team members to focus on more sophisticated tasks as repetitive functions are increasingly automated. Robotics also can improve workplace safety, taking over tasks with a higher risk level to help keep employees safe from injury. Overall, such improvements across the board help manufacturers retain talent in a challenging labor market.
It’s not just production processes that benefit from automation; automation can have a tremendous impact on security processes. The World Economic Forum reports that the industry most targeted by cyberattacks is manufacturing. With the increasing connectedness across the supply chain and move to more advanced technology, maximizing cybersecurity capabilities is vital. By 2025, the lack of cybersecurity professionals will be responsible for more than 50 percent of significant cybersecurity incidents.
Keys to successful digital transformation
If a technology solution is trending, that doesn’t necessarily mean it’s right for you, and it certainly doesn’t mean you should adopt everything at once and expect a sustainable or meaningful transformation.
There are five crucial factors that are essential to a successful digital transformation, and each of these can make or break your efforts. Successful digital transformation depends on the following:
- Data.
- Careful planning.
- Companywide adoption.
- Choosing the right technology solutions.
- Collaborating with a strategic adviser.
Trends are ever-changing, but strategic planning with business goals in mind can help any manufacturer become more digitally optimized.
We can help you make the most of new opportunities and challenges by identifying the right strategy and technology for your manufacturing operation.
link