The manufacturing industry has been slow to move forward, especially from an ecosystem-wide and enterprise-wide digital transformation perspective.
Manufacturing is obviously a very broad industry where giant multinationals and smaller manufacturers coexist; there are also industrial manufacturers in this ecosystem who cater to both industrial partners and businesses manufacturing goods with a much closer relationship and interaction with the end user.
Like most industries, the manufacturing industry is highly diverse and different aspects of it are moving forward at different speeds. So, on the one hand, digital transformation strategy has been missing in general and initiatives have been largely ad hoc – on the other, things are transforming but in certain areas only. However, as we’ll discuss, a holistic picture view on things is missing, and digital transformation goals are still looked at in a traditional and isolated way by most manufacturing businesses.
Furthermore, and from a traditional perspective, manufacturing companies find it difficult to think outside of “firefighting mode” – i.e. they typically react to problems rather than anticipate them and come up with innovative solutions to prevent them altogether.
This is one of the main reasons manufacturing businesses have not been able to chalk out long-term digital strategy approaches to major issues, and instead, come up with ‘quick fixes’ to keep up with productivity.
A survey done by a manufacturing software platform provider in early 2022 revealed some very interesting insights on the state of digital transformation in the manufacturing sector:
Successful digital transformation is very much possible for manufacturing companies across all scales and sub-sectors.
Take the first step towards digital transforming by trying out Warehouse Auditor App – a bespoke piece of software designed by specialists working in the Manufacturing and Logistics sectors, helping warehouse professionals, record data in an easier, more efficient, and cost-effective way.
Organisations working in high-risk industries like manufacturing, warehousing, supply chain, and logistics, are well aware of the risks and potential hazards their workers face each day. Unfortunately, despite their best efforts, many businesses do not have the appropriate health and safety controls to minimise risk and hazards at the workplace.
According to an HSE report, around 54,000 workers are involved in non-fatal accidents in the manufacturing sector each year. Most of the injuries they suffer are a direct result of manual handling accidents, trips, slips, and falls, contact with moving machinery, and being struck by moving objects.
It is estimated that the logistics industry will grow at a CAGR of 10-12%, reaching a value of $380 million by 2025. A large driver of this growth will be technology and automation – from robotics and the Internet of Things (IoT) to artificial intelligence (AI), better integration of the various ecosystems involved, digitisation of processes, and more.
Supply chain inspections often prove to be a challenge, even for leading, well-established companies. However, standardisation has now become one of the chief methods of optimising the greater supply chain and ensuring that all managers, departments, and teams are on the same page.
According to a 2019 report published by the Journal of International Logistics and Trade, political unrest are among the leading causes of supply chain disruptions. A SAP survey reported that 58% of US business leaders believe supply chain problems primarily stem due to global political unrest.
Even though a myriad of digital processes have been introduced across many industries in the UK economy, a recent report indicates that at least 96% of UK manufacturers believe there is an underinvestment in technology and digitisation in their sector.
Did you know that manufacturers are still using paper in more than a third (35%) of their processes on average? What’s more, manual spreadsheets are still used for nearly half (49%) of all manufacturing-related processes.
If you think about, warehouses and everyone working within those walls, are the unsung heroes of supply chain and distribution. Without quality warehouses equipped with the latest technology, we would not be enjoying the super-fast at-home deliveries or products being available on shelves almost on a 24/7 basis.
In the world of business, the last thing any owner, CEO or stakeholder wants to hear is “disruption”. Effective supply chains that run like a well-oiled machine are integral to any business’s success.
This brief yet insightful article explores where the UK logistics sector will stand in the next 12 months – amid many challenges, such as Brexit, the global pandemic and the Ukraine war.
