Your company’s success depends on digital transformation. Manufacturing can benefit from technology in many ways, but it often lags behind other industries in adopting technologies that could increase profits.
A January 2022 paper from Deloitte states, “Acceleration in digital technology adoption could bring operational efficiencies to scale.” The paper goes on to suggest that smart factories could significantly advance U.S. manufacturing and use robots, artificial intelligence, and other cutting-edge technologies.
Manufacturing companies often manage daily operations using separate platforms and spreadsheets. It becomes necessary to manually intervene daily to manage field service, accounting, finance, inventory, customer service, and e-commerce portals on different platforms that do not synchronize or communicate.
Additionally, entering data into spreadsheets is time-consuming and prone to errors. When manufacturers use the right technology to manage daily tasks, they can address these problems quickly and efficiently.
The goal of digital transformation is to close information gaps by integrating various platforms. This may mean establishing a new company-wide ERP platform that combines finance, accounting, and operations, as well as field service, inventory management, and CRM to enable 360-degree customer, partner, and supplier views.
There may be a need to transfer major systems, such as the ERP, into a new platform and integrate third-party applications to improve efficiency. Alternatively, you may need to find new ways to use your existing ERP system, such as collaborating with a consultant to update the system, create new reports, or explore integration possibilities.
It does not take much for manufacturers to improve efficiency and profitability by embracing digital transformation.
With an integrated ERP and CRM portal, your service department could answer customer questions without hesitation, and field service personnel would have the same access to sales information. A complete and comprehensive view of each customer account is possible via digital transformation and integrations.
Despite the potential for profitability and improvements, many believe that digital transformation will never occur at their facility. Manufacturers haven’t fully adopted digital transformation for many reasons.
Many manufacturing CEOs and senior executives surveyed by Finances Online are reluctant to move forward with digital transformation because they aren’t yet convinced of its positive impact on the bottom line.
CEOs may need to review the data more closely. In response to pandemic challenges, organizations that utilized technology were most successful. In fact, 56% said they pioneered digital technologies during the crisis (McKinsey, 2020).
According to a 2020 report by Deloitte, companies with higher digital maturity reported 45% revenue growth compared to 15% for companies with lower maturity.
In times of immense disruption, early manufacturing technology adoption had many advantages.
Digital transformation can significantly enhance the competitiveness of small and medium-sized manufacturers. With an ERP system, you can leap-frog the competition by switching from spreadsheets to off-the-shelf accounting software. This technology saves time, improves inventory control, and allows better service and supplier management.
You can increase profits and efficiencies by embracing digital transformation in your manufacturing business. Now is the time to get started. Schedule your complimentary consultation today before you get further behind.