Here’s a fact: manufacturing organizations must embrace digital transformation. Otherwise, you risk losing your competitive advantage.
We’re no longer in the world of stable, predictable markets. The business world is increasingly dynamic and unpredictable. Customers’ demands constantly change. For instance, they demand a modern experience and expect companies to attend to their demands 24/7. Moreover, online trends rapidly influence the buying habits of customers.
These factors present huge challenges for manufacturers. Some examples of such challenges are social responsibility and sustainability. Manufacturers must stay ahead of these issues to maintain a great reputation and revenue.
One thing is for sure – all companies must embrace digital transformation. Listed below are the reasons why. If you’re a digital transformation denier, these reasons might make you reconsider.
Reason 1: Do More With Less
We simply need to do more with less these days. Disruption has challenged businesses to reduce costs and remain agile.
For instance, let’s assume that the demand for your products drops or completely dries up. This greatly pressures your business to cut costs, particularly operational costs.
Meanwhile, let’s say that the demand for your products skyrockets overnight. This still requires you to do more with less due to supply chain limits or disruptions. You might have to shift suppliers quickly to get the raw materials you need to produce the product.
Or maybe their demand for your products has seen a modest impact. However, you still need to reduce waste and resource consumption. You need to make your operations more efficient to have competitive pricing.
Whatever your situation is, you must do more with less without compromising the safety and quality of your products.
Reason 2: Be More Agile and Responsive
The trends in demand and supply are uncertain. We’re witnessing big spikes, upticks, and downticks in demand. There is no rule book on-demand forecasting and supply chain planning. We simply don’t know what the demand or supply chain logistics will look like tomorrow.
As result, companies must make decisions very quickly on how to cope with that uncertainty. The key to solving this challenge is to become more agile and responsive.
Reason 3: Quality Never Rests
The COVID-19 pandemic has affected everyone in some sort. Markets are unpredictable. However, quality never rests. Producing sub-par goods won’t do you any good. Consumers will not buy them and if they do, they won’t buy them again. Moreover, shipping unsafe goods will surely make authorities knock on your door.
Thus, quality is still a top priority regardless of the massive challenges in the industry. Regulators nor consumers won’t accept a substandard program no matter what the situation is.
Reason 4: Tribal Knowledge is a High-Risk Strategy
Tribal knowledge is all the knowledge gained on the plant floor, from decades of manufacturing your products. Your operators know the “personalities” of the machinery. Supervisors can run operations with their eyes closed. Experience executives lock the strategy in their heads.
However, a disruption literally knocks out all of that knowledge out the door. For instance, tribal knowledge will go in vain if your workers miss work. The fact that tribal knowledge is just in people’s heads is a massive risk.
Eliminate this risk by leveraging the power of data analytics and business intelligence. Moreover, develop a set of procedures and workflows for everyone to follow – and document them.