The new year is looking good for the manufacturing industry and it’s resulting in a digital transformation. There are more innovative initiatives to follow this digital transformation and it is backed by 4 accelerators: the cloud, Big Data/analytics, social business, and mobility.
However, for most manufacturers, it’s going to take more than just new technologies to create value from their investments. Companies will also need to focus on hiring and retaining the right talent to provide great customer service for optimal supply chain support.
In order to for the manufacturing industry and supply chains to having a dynamic business environment, here are 10 predictors that will redefine the future of manufacturing.
1. The Impact of Customer Centricity
By the end of 2017, those manufacturers that have leveraged customer-centricity investments will gain market share growth in the range of 2-3 percentage points.
2. Global Standards for Global Manufacturers
In 2016, 90% of manufacturers will impose their global standards on all operations, including outsourced operations and suppliers, to decrease risk and increase market opportunities.
3. Value Realization
By the end of 2016, 65% of manufacturers will have metrics in place to evaluate and drive pervasive changes in the workplace with their new technology investments.
4. Building on IoT-enabled Products and Processes
By 2019, 75% of manufacturing value chains will undergo an operating model transformation with digitally connected processes that improve responsiveness and productivity by 15%.
5. Redefining Modern Supply Chain Logistics
By 2019, 50% of manufacturers will have modernized their logistics network to leverage 3-D printing, robotics and cognitive computing to support innovative postponement strategies.
6.The Decline of Short-Term Forecasting
By the end of 2019, enterprise-wide improvements in resiliency and visibility will render short-term forecasting moot for 50% of all consumer products manufacturers and 25% of all others.
7. Enterprise Quality via the Product Innovation Platform
By 2018, 60% of top 100 global manufacturers will be using a product innovation platform approach to drive enterprise quality throughout the product and service lifecycles.
8. The Digital Twin
By 2017, 40% of large manufacturers will use virtual simulation to model their products, manufacturing processes, and service delivery to optimize product and service innovation.
9. Smart Manufacturing with Cloud, Mobile, and Big Data and Analytics
By the end of 2017, 50% of manufacturers will exploit the synergy of cloud, mobility, and advanced analytics to facilitate innovative, integrated ways of working on the shop floor.
10. IT Transformation for Digitally Executed Manufacturing
In 2016, 20% of manufacturers will begin to break down organizational silos, reshape IT portfolios, and import new IT talent in the plant for digitally executed manufacturing.
New technologies and enhancements are necessary to achieve the digital transformation required for the next generation of manufacturing. Manufacturers must review their current application portfolio; modernize processes in the back office and the plant, and in all aspects of the value chain upstream and downstream; and upgrade their decision-making capabilities.
Digital Transformation for Supply Chains
Considering these predictors will ensure that 2016 will be a very exciting year for manufacturers. In order to get the most out of your supply chain, invest in a program or technology that will optimize your strategy.
Learn more about MEP’s strategic approach to supply chain optimization or jump start your readiness by taking our Supply Chain Vitality Quiz to see how you fare!
Source: Industry Week