How digitization is transforming manufacturing industries ?

What is digitization ?

To explain what digitization is, first let us clarify the difference between digitization and digitalization. These two terms are often confused together. Digitization is a term that refers to transforming your manual process into digital formats using certain tools but without changing the actual process. Whereas digitalization refers to changing the process for further enhancement of the business process.

Example : Let us consider, you are maintaining all your personal expenditures list in some accounts notebook. In order to get digitized you will be making all those entries in an excel sheet or some accounts tool. This saves paperwork and you do not need to search each time whenever you have to make an entry, as digital tools will be readily available with your mobile anytime anywhere. Thus this enables you to save time, avoids mistakes and data being lost.

Next coming to digitalization, consider that you are making all your bill payments like electricity, gas, broadband services, telephone bills etc through a direct payment mode. Obviously this consumes more time and there are chances you miss the due date. Now in order to get digitalization you can start making payments through an online process, set a standing instruction to avoid missing due date, download and save all invoices online. Thus this saves you more time but all you have to do is change your process. This is what digitalization does.

Manufacturing digitization

Why Manufacturers need digital transformation ?

Manufacturing deals with a number of complex processes and faces a rapid change with customer’s requirements. Hence the manufacturer must be way advanced in order to fulfill those demands and sustain in the market. All those manual processes would not at all work in times like this. The digitization boosts productivity, handling more projects and effortlessly hitting the deadlines. Digital manufacturing means a fully integrated approach that results in efficient planning, scheduling, quality control & inspection, material movement and shop floor operations. It helps you with improved communication, business analysis and real-time data. 

Digital transformation examples in manufacturing

  1. Industrial IoT, a series of internet connected sensors and devices that provide real-time data from across the factory floor enabling improved visibility for machine performances. 
  2. Big data analytics tools help translate complex data into actionable insights used for demand forecasting.
  3. Cloud technology helps manufacturers to securely retrieve and store the massive amounts of information from the factory floor. 
  4. Robotics are a staple of the manufacturing environment serving to automate repetitive tasks and heighten efficiency and promote worker safety. Likewise robot vehicles can create more efficient packing protocols in the warehouse.

Areas where digital transformation can have an impact

Shop floor connectivity :

All the operations carried out at the shop floor should be transparent with every other employee. Real-time data is an essential factor ensuring the work goes in the right path. With digital manufacturing, the management has direct connections to all equipment and live production statistics. As a result, a visible enhancement can be seen in the business process.

Supply Chain planning :

Demand forecasting and sales prediction plays a vital role for any businesses especially those which handles supply chain management. The manufacturers should be capable of fulfilling the ever changing customer requirements. The demand varies with many factors like weather, events, competitive products and new innovations. Thus digital technology helps in better supply chain plans, forecasting and operations.

Supplier Collaboration :

With efficient supply chain management the collaboration with the suppliers is enhanced. Digital technology helps establish good communication with the supplier. Thus any disruption in the transportation or logistics is well intimated in advance. This results in having a better plan B so that you can avoid situations arising to dissatisfied customers. 

Business Insights :

All manufacturers want business visibility to make timely business decisions. The process is completely reliable on real time data and analytics reports generated by software like ERP. The results are more accurate and help to achieve greater customer satisfaction.

Benefits of digitization in manufacturing companies

Digital Connectivity :

Data connectivity in areas of operations, inventory, equipment and customers are important for any manufacturer. This has become the foremost priority as the production process completely relies on this information, thus eliminating any disruptions.

Smart Technology :

Manufacturing industry always involves working around heavy machines where safety is a major concern. By adapting to the smart technologies such as AI, robotics and other automation enable a safer workplace for the laborers and also deliver beneficial output. It greatly reduces human errors and injury, improves quality and production rate.

Operations Management :

Since digital transformation, the manufacturers are able to continuously monitor real time data. This helps in optimizing efficiency and improving quality standards. It also reduces operating expenditures and manufacturing wastes. Thus establishing a better operations management.

Communication :

Communication is one of the major factors for any business process. This can be greatly achieved with digital technology. It promotes a better flow of data communication between employees and other departments. As a result this increased efficiency, accuracy and responsiveness.

Reduce manufacturing waste :

Manufacturing industries are major consumers of energy. It is highly important for them to adopt green and sustainable methods. Digital technology helps track waste and reduce it as much as possible. It suggests re-purposing materials and resources, thus paving the way to an Eco-friendly environment.

Transfer your business into digital manufacturing with Freedom ERP!

Contact us today to know how Freedom ERP can transform your manufacturing operations and optimize your business towards success. 

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