Digital Transformation in the Manufacturing Industry

Manufacturing Digital Transformation

Digital transformation continues to change the manufacturing industry, improving efficiencies in production, in administrative functions, and across the entire supply chain. Has your manufacturing company fully transformed into a digitally run business? If not, read on to learn ways that the digital transformation of your business and operations can help you compete with industry leaders.

In this blog post, we provide a summary of some ways manufacturing digital transformation is changing the industry. To learn about this topic in detail, read the CIS blog post 3 Manufacturing Technology Trends. Additionally, you can learn how good technology strategies can help with your transformation to a digitally-driven business in the CIS blog post Strategies for Technology Success in Complex Production Environments.

Manufacturing Automation

Effective use of data enables automation in manufacturing, which in turn helps manufacturing companies improve operational and business efficiencies. Absent a data-driven system, automation is not feasible or even possible.

Administrative Functions – Digitally connected businesses can streamline ordering, shipping, and billing/payment activities by eliminating data entry duplication and automating the completion of forms. This allows the supplier and the customer to reduce administrative costs and reduce errors, which in turn increases profit margins while lowering product prices. This is a win-win situation for both suppliers and customers.

Robotics – The use of robotics allows manufacturers to produce products more efficiently and safely than they can achieve with human interface-driven production operations.

Quality Control – Digital technology, including the use of robotics, IIoT, machine learning, and AI, enables cost-efficient quality control in manufacturing operations. In addition to helping the manufacturer improve the quality of its products, digital technology also helps manufacturers with a selection of high-quality products that feed their production line.

Industrial IoT (Internet of Things)

IIoT technology and devices bring together information from a wide range of sources across the entire manufacturing value chain. Strategically placed sensors measure and record plant activity, product quality, and warehouse contents. They also track the movement of material throughout the supply chain and the distribution network. IIoT technology enables centralizing all of this information supplied by sensors into a single manufacturing and distribution management platform.

Digital Supply Chain Management System

In order to leverage all of the benefits of the digital transformation of your business, you need to implement a digital supply-chain management system.

Shipping – The top manufacturing and distribution companies use digitization to manage their shipping operations. The CIS blog post How to Use Data to Improve Shipping Operations provides details. The post will inform you about essential data, availability and communication of data, software to help convert data to gained efficiencies, and continuous process improvement.

Supplier Management – Using IIoT and other digital technologies helps manufacturers efficiently manage their entire supply chain. Not only does digitization improve performance and reduce the cost of administrative functions, but it also enables efficient quality management of production line feeds, whether raw materials or sub-components. Additionally, digitization can improve inventory management by automating the ordering of supplies or prompting production orders to maintain optimum produced goods inventory levels.

Order Customization

Digital technologies offer manufacturers the means to respond to customized orders in a cost and production efficient manner. This is a departure from the old days of fixed process mass production. Digitization can automate the creation of production orders using information from sales orders, and automate machine calibration and retooling to meet custom order specifications. With these features automated, manufacturers reduce the potential for making errors when translating information from sales orders to production orders and save valuable time in the process.

Where Do I Start?

Does your manufacturing business need a digital transformation? Have you started the transformation, but struggle with implementation and you do not see the proposed benefits? If these themes seem familiar, you may benefit from a consultation with the right business partners. CIS (Custom Information Services) specializes in providing customized computing systems and support for manufacturing and distribution companies, helping them achieve the desired benefits that digital transformation can deliver.

Published On: December 17, 2019Categories: Managed IT Services