Article by James Robinson, Vice President Services, Asia Pacific, SYSPRO
In the fast-paced manufacturing world, it can be challenging for companies to stay ahead of the curve and remain competitive. One way to gain an edge is through data discovery, which enables manufacturers to identify trends and patterns in their operations, helping them fine-tune their processes and improve efficiency.
As the digitisation of the manufacturing sector becomes more prevalent, we are seeing big data collected from machines, robotics, Industrial Internet of Things (IIoT) sensors and other connected equipment in the factory. These large data sets are then analysed to uncover hidden insights and trends.
The application of big data analytics can be used in various ways in manufacturing operations, including production, supply chain management and customer relations. By employing Business Intelligence (BI) this way, manufacturers can gain a deeper understanding of their operations that will influence strategic and tactical business decisions to improve performance.
However, the amount of data generated daily is immense and can become so complex and vast that most traditional processing applications fail to offer useful insights that will drive meaningful results in a manufacturing business.
The recent economic volatility has tested manufacturers’ resiliency and ability to meet customer demand or connect with global supply chains. There is a growing need for visibility and organisational efficiency, which requires manufacturers to shift away from manual systems and instead leverage meaningful data intelligence.
Fine-tuning manufacturing operations
First and foremost, data discovery allows manufacturers to identify areas where they can achieve operational efficiencies, such as identifying production bottlenecks. With this information, manufacturers can gain real-time insights to make decisions targeting improvements to affected areas, increasing output, productivity and profitability.
In addition, data discovery can help manufacturers identify new business opportunities. By analysing customer data, companies can spot emerging trends and customer preferences, allowing them to develop new products and services that meet these needs. This can lead to increased revenue and market share.
Data discovery can also help manufacturers improve quality control. By analysing data from production processes, companies can identify patterns of defects or quality issues, allowing them to take corrective action before products are shipped to customers. This can improve customer satisfaction and reduce the risk of costly recalls.
Another key benefit of data discovery is that it enables manufacturers to make data-driven decisions. By analysing data and uncovering insights, companies can make informed decisions about everything from production processes to marketing strategies. The result is better decision-making and ultimately, improved business performance.
ERP with embedded analytics
Manufacturers must invest in the right technology to support data discovery to maximise potential performance improvements by providing increased visibility of operational activity. Therefore, they need an Enterprise Resource Planning (ERP) system that places intelligence at the heart of their business operations with analytics capabilities that enhance their data-driven decision-making.
Manufacturers not investing in an ERP with analytics capabilities built-in may need to hire a team of data scientists and other data experts to analyse vast amounts of data to turn it into actionable insights.
Impacting supply chain and inventory management
Supply chain management is another area where data discovery can significantly impact a manufacturing business’s operational efficiency. By analysing data from suppliers, manufacturers can identify potential risks in the supply chain, so they can take action to minimise potential disruptions to their production, caused by suppliers struggling to meet demand or experiencing quality issues. This enables manufacturers to proactively address these issues and minimise the impact on their factory floor.
Data discovery can identify supply chain inefficiencies hindering productivity, such as receiving raw materials or packaging delays. This enables manufacturers to select the most appropriate supplier according to their requirements. They can manage their suppliers efficiently and even integrate their supply chain with real-time traffic information, weather forecasts and strikes to track delays and prepare for any deviation in delivery patterns.
Inventory optimisation is another area where manufacturers can employ data discovery. They can determine the optimal product inventory levels by analysing customer demand, production capacity and supply chain lead times. This can help reduce inventory costs while ensuring that products are available when customers need them.
The takeout
Data discovery is a powerful capability that can help manufacturers identify trends and patterns in their operations, improving efficiency, quality and profitability. Manufacturers must take a strategic approach to fully leverage the benefits of data discovery. This involves identifying the key areas of the business where data discovery can have the most impact and developing a plan to implement data discovery initiatives.
When an ERP system has embedded analytics, manufacturers have all the data and insights they need in one system, rather than referring to separate applications. When information is centralised, manufacturing businesses can speed up their decision-making and gain deeper insights. By investing in the right tools and taking a strategic approach, manufacturers can unlock the full potential of data discovery from their manufacturing shop floor to the back office and gain a competitive edge in the market.
