4 Ways to Deal with Disruption Sweeping the Manufacturing Industry

Build a resilient supply chain with an IoT strategy. SME manufacturers can better withstand external shocks and improve competitiveness.

Supply chain managers are distraught from recurring setbacks, wherein each issue requires immediate attention and any delay, can potentially hamper the product delivery. Manufacturers will have to actively engage with suppliers for timely delivery and negotiate a price that does not affect the profitability. Staff availability is also a challenge due to the sudden restrictions and lockdowns. Demand forecasting, the very core on which manufacturing runs, is another blindsided issue businesses have to grapple with.

Supply chain is the backbone to a manufacturer’s business growth, profitability, and the very survival. Manufacturers will need advanced solutions to make supply chains work in today’s globalized industry.

“Internet of Things” (IoT) is a key driver of global industrial transformation. IoT in manufacturing help improve various operational metrics and increase the ability to meet customer expectations. Let’s look at four ways to use IoT solutions to deal with disruption in manufacturing industry:

1. Improve Supply Chain Visibility

With the use of IoT sensors, companies can track shipments at every stage, which ensures complete control and quality assurance with minimal losses. With real-time supply chain visibility, manufacturers and customers need not wait for a shipment to arrive at its destination to discover the damage in a product or part of it during transit. Without the benefit of IoT, companies can only track their shipments as they arrive at checkpoints, not between them. In addition, IoT allow companies to track their inventory, including the upcoming fleet they have in stock for future production.

2. Increase Workforce Productivity

Manufacturers can effectively track the workforce and improve productivity with help of suitable IoT solutions. These solutions help evaluate an organisations' resources and outcomes. The data recorded will point out key areas to improve and enable workers to be more effective; also helping to reduce the overall working hours.

With active integration, the workers can be categorized into efficient teams so that desired production output is exceeded without overburdening them. It will help overcome industrial workforce shortages by reducing load, improving productivity, and increasing retention rate. IoT frees the workforce from repetitive tasks and focuses more on complex problems that require human attention.

3. Maximize Equipment Availability

Manufacturers can use sensors to get detailed equipment usage and storage data such as the location, temperature at which the products are stored, the time spent loading at different locations, and the time it takes to reach the destination. The data collected by the IoT sensors allow companies to better manage assets and reduce equipment idle times. It also leads to better product quality and timely delivery.

Manufacturers can identify patterns from this data to improve equipment availability, production efficiency and better plant production schedules.

It also facilitates predictive maintenance and improve production management. Even more value is created when the plat floor data is combined with enterprise resource planning, supply chain, customer service, and other business systems – leading to a whole new level of visibility and transparency.

4. Drive Collaborative Production Management

To retain the benefits of outsourcing without the high cost, companies should partner with contract manufacturers who want to equip their facilities with IoT infrastructure. IoT devices in smart factories lead to increased productivity and quality. It enables a seamless connection with suppliers and other stakeholders by sharing real-time insights across the complete manufacturing cycle. It drives collaboration across the value chain. The insights help manufacturers make informed decisions and plan supplies only when required.

In Summary

Growing complexity of supply chains is making it difficult for manufactures to match the competitive demands of the market. Using IoT generated data, manufacturers gain a better understanding of the supply chain elements, improve demand forecasting process, and ultimately create a better customer experience. Further, IoT-enabled solutions help increase efficiency and eliminate risks that hamper supply chains. Therefore, spending time to identify risks and exposed areas to create contingencies with IoT is critical for the success of a new-age manufacturer.