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. In fact, the use of technology (or lack of) – where only 37% manufacturers are effectively leveraging current technology – was cited as the biggest barrier to productivity, ahead of processes (32%) and people (31%). This was according to figures published by iBASEt in May 2022 in the Manufacturing Digital Productivity Report.
The report above involved 403 highly engineered industrial manufacturers from both the US and UK, revealing that the industry’s biggest productivity hamper is a reluctance to embrace digital tools and technologies. More UK respondents compared to their US counterparts said that legacy technologies have had a far more negative impact on their business (73%) compared to Brexit (67%).
The report also revealed that 56% of UK manufacturers are not hitting their sales targets as a result and 93% say that technological underinvestment may lead them to go out of business within a decade or so.
The key findings of the report point to one thing: manufacturers’ reluctance to let go of legacy processes and systems. Since 83% of manufacturers said their business was adversely impacted by the pandemic in the past 18 months, at least 67% of them adopted Industry 4.0 and smart factory technologies to survive amid the social distancing guidelines. As a result, 68% claimed it made them more productive while 51% said it led to better business agility.
Unfortunately, 56% of UK manufacturers are still not harnessing the power of Industry 4.0 with 19% not using any of the data whatsoever.
The problem (again) mostly lies in a general lack of digital maturity – an insistence on running operations through pen and paper or spreadsheets. This is leading to higher production and process-related errors, with the overall manufacturing process slowing down a great deal. The end result is an acute difficulty in attracting the new generation of manufacturing workforce.
If you think about it, all this adds up to not only a drop in company performance, but also a loss of trade, and ultimately, leadership positions coming under threat.
Now is the time for every UK manufacturer to take action and embrace the digital revolution. And, this is not a matter of “if” but a matter of “sooner rather than later”.
As part of their digital maturity strategy, every manufacturing business must adopt the latest tools and technologies to stay ahead of the competitive curve and beat economic woes.
The next generation of talent is going to rely heavily on technology so pen and paper or traditional spreadsheets will simply not cut it anymore.
For more information about moving to a paperless reporting process.
Operations management in Manufacturing and Warehousing is at the forefront of change, utilising modern technologies as well as disciples to not only address the latest string of operational challenges, but also keep organisations running like a well-oiled machine, all the while maximising both productivity and profitability.
The main goal of any businesses engaged in manufacturing, warehousing, and logistics is to improve the accuracy of order fulfilment, minimise operational costs, and optimise resource allocation. The advent of digitalisation and other disruptive technologies in warehouse management and logistics, which we’ll be discussing shortly, have paved the way for businesses in the sector to increase revenues and improve operational efficiencies across the board – among other things.
Paperless manufacturing is revolutionising the way factories now manage, coordinate, and report various activities through the use of digital tools. Digitalisation or digital disruption has proven to be an effective strategy for more streamlined work order management, for example, helping organisations maintain quality standards, all the while ensuring that they are on top of compliance matters.
Supply chain sustainability refers to effectively managing the social, economic, and environmental factors within an organisation’s supply chain. A very important aspect of this sustainability initiative is recognising and acknowledging the link between a manufacturing company and the broader ecosystem they may be impacting – and then coming up with responsible business practices to make all aspects of the supply chain sustainable.
As we eagerly look to a bright and productive year ahead, the UK’s logistics sector is at a bit of crossroads, so to speak, poised for disruption amid a backdrop of regulatory shifts, technological evolution, and global economic dynamics.
In a recent report released by The Manufacturers’ Organisation, half of the companies surveyed are upping their investment in automation technologies, especially AI and ML, with almost ¾ of companies now spending more openly on automation across multiple technologies and functions – from product design and development to manufacturing and warehousing operations.
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.
Interested in simplifying your health and safety inspections, enhance compliance and boost efficiency?
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