What you need to know about manufacturing digital transformation to grow your business.
Manufacturers often fall behind other industries in embracing modern technology. This lag means missing out on potential cost savings, increased revenue, and greater profits. Manufacturing digital transformation can help manufacturers build their companies to meet modern challenges..
A January 2022 paper from Deloitte states, “Acceleration in digital technology adoption could bring operational efficiencies to scale.” The paper goes on to suggest that smart factories could advance U.S. manufacturing significantly as well as the use of robots, artificial intelligence, and other cutting-edge technologies.
Manufacturing Slower to Adopt Modern Tech
It’s not uncommon to find manufacturing companies using separate platforms and spreadsheets to manage daily operations. Using different platforms that do not synchronize or communicate with one another to manage field service, accounting, finance, inventory, customer service, and e-commerce portals creates the need for daily, time-consuming, manual intervention. Inputting data into spreadsheets is also problematic, creating time-consuming processes and opening the door for potential errors.
Close Information Gaps by Integrating ERP Platforms
Digital transformation includes integrating various platforms to close information gaps. This may mean:
- Adopting a new company-wide ERP platform that encompasses finance, accounting, and operations, and easily adds other functionality, such as field service, inventory and warehouse management, and CRM to enable 360-degree customer, partner, and supplier views
- Transitioning major systems, such as the ERP, into a new platform, and integrating third party applications to fill any efficiency gaps
- Finding new ways to use your current ERP system, such as working with a consultant to update the system, create new reports, or find potential integration solutions
Even a few shifts towards digital transformation for manufacturers can go a long way towards enhancing efficiency and profitability.
Consider the potential for improved customer satisfaction when an integrated ERP and CRM portal enables your service department to answer questions without hesitation, or the benefit of field service staff having the same access to sales data. Such is the power of digital transformation and integrations to ensure a complete, comprehensive view of each customer account.
Reasons for Delays in Manufacturing Digital Transformation
Many reading this will see the potential for profitability and improvements with digital transformation but feel that it will never happen at their facility. There are many reasons why manufacturers still haven’t fully embraced digital transformation.
On the leadership side, many manufacturing CEOs (37%) and senior executives (32%) surveyed by Finances Online are reluctant to move forward with their manufacturing digital transformation. Their reason is simple: they aren’t yet convinced of its positive impact on the bottom line.
Such CEOs may need to take a closer look at the data. In fact, organizations that responded the best to pandemic-related challenges were able to do so thanks to technology. 56% said they were the first movers in experimenting with digital technologies during the crisis (McKinsey, 2020).
Additionally, companies that have higher digital maturity reported 45% revenue growth compared to 15% for lower maturity companies, according to a 2020 report from Deloitte.
Clearly, being an early adopter of manufacturing technology had many advantages, especially during times of enormous disruption.
It’s Time for Your Company’s Manufacturing Digital Transformation
Would you like to learn more? Click here to view the webinar for SYSPRO customers about increasing productivity and reducing costs with Manufacturing Operations Management (MOM).
The journey through manufacturing digital transformation begins with the conviction that it is the right solution for your business and that it will make your operation more efficient and boost your bottom line. The best time to start is now.
Positive Vision understands there are many types of manufacturing businesses. We have the expertise to recommend the type of manufacturing software that will be the right fit for your day-to-day operations and grow with you.
To learn more about these manufacturing software solutions and find out which options would be the best fit for your business, contact us today to speak to a product expert.