Digital transformation is flourishing in the manufacturing industry. Technology is evolving with artificial intelligence (AI) and the internet of things (IoT) leading the way. Businesses would be remiss to not leverage the opportunities accompanied by digital transformation. But, without proper access to appropriate and relevant data and the expertise to analyze and make it actionable, such reconfiguration can be difficult for manufacturers who want to leverage its power as a transformative business tool.
Using a Data-Driven Approach to Overcome Challenges in Manufacturing
As reported by McKinsey, it is long known that the manufacturing industry generates more data than any other sector of the economy. However, many organizations fail to utilize it effectively. In order to reap the benefits of digitization, manufacturers must efficiently process large quantities of data from a variety of equipment, sensors, and locations.
Data and AI aren’t limited to helping the back office. We utilize Salesforce to create fluidity between front-end and back office. Breaking down internal silos means developing more accurate sales forecasts, creating personalized marketing, improving customer service interactions, and improving the overall customer and partner experience.
You can learn more about creating efficiency between departments by scheduling a consultation with our technology experts.
Benefits to Manufacturers for Using Data Collection
The benefits of data collection within the manufacturing industry include efficient operations, streamlined supply chain operations, and the ability to generate an engaging buyer’s journey. Although increasing a company’s profitability is at the heart of digital transformation, there are many benefits to implementing a data-driven approach.
1. Reduce Costs and Increase Operational Efficiencies Digital
transformation plays an integral role in reducing costs within the manufacturing industry. As the industry continues to rely on complex products and systems such as product life cycle management (PLM), enterprise resource planning (ERP), manufacturing execution system (MES), and supply chain management (SCM), not only do unnecessary workloads hinder operational efficiencies, but increased manual labor processes create more room for errors. Ultimately, this leaves businesses with
- Unreliable data
- Decreased process efficiency
- Increased labor costs which impact their Cost of Goods Sold (COGS)
2. Shorten Time to Market and Increase Agility
As consumer demands rapidly increase with technological innovations, manufacturers must adapt and respond quickly to changing market conditions. With access to relevant supplier data, businesses remain competitive by streamlining supply chain functions and fulfilling customer orders. By leveraging data such as supplier spend and performance metrics, manufacturers curate agile business processes that are resistant to fickle consumer demands and markets.
3. Deliver an Integrated and Engaging Omnichannel Experience
In order to sustain and grow their customers, manufacturers must curate an engaging experience cultivating relationships through digital experiences. No longer is omnichannel required solely by retailers. Manufacturers must inspire meaningful customer and supplier relationships, by consolidating complex product information from a variety of systems to promote their multitude of sales channels and by producing quality information that is easily accessible.
How Manufacturers are Responding to Digital Transformation
Manufacturers leading their industries are leveraging digital transformation opportunities and are improving operational efficiencies and product innovations, ultimately contributing to increased bottom-line profitability. For example, many large businesses utilizing data analytics are increasing supply chain visibility in order to produce high-quality products while reducing energy consumption. Pharmaceutical companies utilizing digitization are able to better understand end-to-end processing in order to quality control standards by continuously monitoring critical equipment conditions.
As manufacturers look to be a part of the digital transformation revolution, they need to align themselves with the right partner and solution. Trifecta’s knowledge and expertise in the manufacturing industry allow our team to tailor a solution and provide guidance to manufacturers who want to benefit from the increased insights, efficiencies, and capabilities that data can bring to their organization.
Digitization is inevitable for manufacturers who don’t want to be held back by outdated business models and technology. Schedule a consultation with our technology experts to learn how you can benefit from a data-driven business approach.