Staying competitive in modern manufacturing requires skillful supply chain management. As technology continues to evolve, tools to connect and track materials, manufacturing services, and inventory control are becoming interconnected and making production more efficient. Staying apprised of trends and changes in the supply chain space is critical for keeping your business one step ahead.
Here we’ll look at some of the ways technology and innovation are driving supply chain management and how they impact strategic planning and productivity.
Customization
Customizing manufacturing services like CNC machining and injection molding is a key part of this strategy. Businesses can greatly expedite prototype development and boost production speed, all while keeping precision and quality standards high, just by tailoring their production processes.
The ability to streamline personalized customer orders is important to keeping operations running smoothly. Automation is used in order processing systems to seamlessly differentiate between standard and customized orders. Automated workflows reduce lead times and boost customization by guaranteeing accuracy and speeding up order fulfillment.
Connectivity and the Industrial Internet of Things
The Industrial Internet of Things (IIoT) is made up of a network of machines, computers, and manufacturing equipment with internet connectivity. The IoT makes it possible to monitor and adjust production parameters, orders, vendors, and inventory in real or near-real time. This connectivity makes it possible to link facilities and equipment in multiple locations and gain remote access. It is estimated that there will be more than 25.4 billion IoT devices worldwide by 2030, according to Dataprot research.
Examples of how IoT technology is used in supply chain management include:
- Management of warehouses and warehouse operations
- Tracking and managing fleets and logistics
- Inventory control and planning
- Mechanical and digital systems maintenance
IoT’s value is significant and will only continue to grow. On average, 127 devices are connected to the internet every second, according to data from McKinsey Digital. Insights from a 2023 State of Manufacturing Report by Fictiv show 54% of respondents already use industrial IoT (IIoT) devices. Another 33% are in the process of adopting these digital manufacturing technologies.
When integrated with other manufacturing technologies, the benefits of IoT devices are amplified. For example, data gathered from sensors and equipment that monitor production lines and packaging can be seamlessly factored into asset tracking and forecasting. The result is a more visible picture of overall material needs and production, which further informs decisions.
Digitization of Supply Chain Data
More and more manufacturers are adopting e-SCM (Electronic Supply Chain Management) tools to streamline production and track multiple vendors, suppliers, and contract manufacturing partners. Fictiv’s manufacturing research also shows that 60% of respondents have already implemented these technologies, with another 31% in the process of doing so.
There are several benefits of digitized supply chain management:
- Fewer Supply Chain Disruptions: Predictive analysis based on past lead times, material availability, and other data makes it easier to anticipate problems and make alternate arrangements.
- Enhanced Efficiency and Productivity: Workflow and process automation reminders and the ability to track how long various processes take help identify and resolve bottlenecks at various points throughout production.
- Improved Inventory Management: Real-time tracking allows for precise inventory management, which maintains the proper balance between overstock and shortages, and can help reduce associated costs.
Increased Visibility into the Supply Chain
In our latest State of the Manufacturing Report, improved supply chain visibility is a top priority for 55% of industry leaders surveyed.
How it breaks down by company size:
- Smaller Companies: These companies prioritize improving customer satisfaction and experience while eliminating operational inefficiencies.
- Medium-sized Companies: Recent changes show a stronger focus on strengthening supply chain resilience and agility. This is in response to changing market conditions and lessons learned from recent supply chain disruptions.
- Larger Companies: Even with market fluctuations, larger enterprises stand by their commitment to boosting supply chain visibility to keep operations smooth and to improve customer satisfaction.
As more manufacturers prioritize digital data and the ability to collect and analyze historical data, they gain visibility into the bigger picture of their supply chain and how it impacts their business overall. Features like customized reporting, forecasting, and the ability to keep a database of vendors and contract manufacturing partners keep information front of mind and easily accessible for quick, data-driven pivots.
Cloud-Based Computing Solutions
Cloud computing technology has ushered in a range of digital tools that exist solely as software packages accessed online. These software-as-a-service (SaaS) products can be accessed from anywhere a user has Internet or Wi-Fi connectivity, and are easily updated with new features and capabilities “behind the scenes” by the product developers. Many are subscription-based, which may be more economical and efficient than purchasing, installing, and updating software locally. According to Fictiv, 78% of survey respondents are actively exploring the potential use of technology solutions to improve production, especially in new product development.
Some of the benefits of SaaS products include:
- Efficiency. Because they reside and store data in the secure cloud, these products are dependable and safe for storing and accessing data. Because information can be retrieved, processed, and analyzed easily, companies can make accurate forecasts and identify critical needs efficiently.
- Convenience. SaaS solutions are convenient because they can be accessed online, often with mobile devices as well as a computer, and can usually be scaled or expanded with specialized modules. This makes them flexible for companies with different priorities and needs.
- Competitiveness. SaaS products are updated virtually with software pushes, which means users gain access to new features and capabilities quickly and without having to manually update software or migrate data. This avoids the need to divert time and effort to software management, so focus remains on product development, supply chain management, and productivity.
Learn More with Pilgrim Harp
Supply chain management is a complex and critical aspect of manufacturing for businesses of all sizes. As technology evolves, it brings opportunities to streamline operations, collect and analyze data, and boost productivity. At Pilgrim Harp, we partner with companies worldwide to provide custom CNC-machined, forged, cast, stamped, and injection-molded parts and assemblies.
Contact us today to learn more about our capabilities and services, and how we can help support your supply chain.