Resilience In Manufacturing Industry
The prevailing pandemic has severely affected the manufacturing industry. The industry experienced the sharpest decline in new orders and outputs, the worst in the last seven years. Typically, a sector that thrives on agility and high precision supply chain dynamics, the pandemic has left many manufacturing enterprises struggling for working capital and facing potential bankruptcy. The reasons behind this dismal scene are erratic and sharp fall in demands, complete or partial production closure and large volumes of unshipped product inventory. Global leaders in manufacturing are cutting down on discretionary spending and are trying to balance between investing for the future and carrying out cost optimization.
Now is when CXOs need to seize the initiative and adopt technology for product innovation and plant digitization. Investments in technology levers like artificial intelligence/machine learning (AI/ML), coupled with the Internet of Things (IoT), robotics, augmented reality/ virtual reality (AR/ VR), and blockchain along with cloud or 5G adoption, can bring in new and innovative business options and much needed efficiency gains and cost savings. These technology-led initiatives will enable businesses with remote operations, ecosystem integration, autonomy and creative solutions. The sooner the adoption of tech fusion, the faster will be the realization of benefits.
Here is a holistic view of key factors that have disrupted supply chain operations and how manufacturers could digitize use cases in today’s context and recover.