In the forefront of manufacturing leaders’ minds is the simple truth that they no longer have a choice when it comes to accelerating and optimizing their business technology. Economic factors, whether in supply, procurement, tooling, talent, or even raw chemical availability, are now aggravating business factors.
It’s no secret that addressing manufacturing challenges looks different today than it did five to 10 years ago. We are looking at new tools, such as ERP systems to centralize data and operations, automation both on the factory floor and in the office, IoT technology for tracking supply chain activity, advanced data exchange with suppliers, sales and customer service enablement technology, and more.
Here’s how a technology-based approach can help you tackle some of your biggest challenges.
►Talent is short.
Manufacturers are experiencing a devastating shortage of skilled labor. Having advanced, competitive technology in key areas of your operations – including your factory floor – can not only make you more attractive to up-and-coming industry professionals but also more efficient.
Here, the key is choosing technology that targets process inefficiencies and folds into your bigger picture, not purchasing the solution in a vacuum.
►Leadership is changing hands – and generations.
Many manufacturing businesses are experiencing a leadership change-over. A new generation is stepping into leadership roles, and how they solve problems is often different.
It’s important to look at each technology investment holistically, so that leadership isn’t making decisions in one department without considering another. Rather than solving the singular need for a new accounting system, you might consider investing in a cloud-based enterprise resource planning (ERP) system, as it provides financial functionality while integrating many other core areas of your business-like inventory and logistics.
►No one is impervious to the whim of the supply chain.
The supply chain has been tumultuous since the start of the COVID-19 pandemic, and other major disruptions have further fueled disruption. The uncertainty we’ve all been working with will only continue, and there’s no telling what’s around the corner.
Having visibility over your supply chain will help you make better decisions for today and the future. It will help you pivot sooner when there is an issue and help you determine where to improve processes to avoid risk. Achieving this will look different depending on your technology maturity, but a few key areas to consider are:
- Creating a data sharing relationship with your suppliers
- Implementing Internet of Things (IoT) technology across your supply chain operations
- Mapping your suppliers in your software to understand your vulnerabilities at farther tiers
- Using advanced data analytics to understand current and potential supply chain fluctuations
- Integrated ERP solution for a single source of truth for inventory, financials, logistics, and more
New-School Tools are Only One Piece of the Puzzle
True transformation requires that you address people and processes, consider your customers’ actual needs and concerns, consider future requirements with every investment, and take a discerning approach to anything ‘shiny’ that may come your way.
This means:
- Assessing where your business is today, including strengths and weaknesses
- Thoughtfully managing upcoming and ongoing change, and understanding your team’s capabilities and capacity to facilitate changes
- Evaluating existing technology and opportunities to automate and improve processes with new technology
- Defining goals as part of your overall vision in order to understand where to direct resource and what changes need to be made - whether with people, processes, or technology
- Managing and preparing for the potential impact to vendors and customers to avoid missteps and capture opportunities
- Gaining buy-in across leadership to ensure company-wide buy-in and acceptance