Software AG: IT predictions for manufacturing and supply chain industry

Software AG has shared top 10 predictions for manufacturing and supply chain industry for 2015.

“We will see manufacturers and their partners accelerate the implementation of initiatives that will deliver on the promise of the Internet of Things (IoT),” said Sean Riley, Global Manufacturing & Supply Chain Solutions Director, Software AG.

Embedded sensors streaming data combined with analysis will provide better levels of supply chain visibility, production support and customer experience optimization, as innovative manufacturers embrace the possibilities enabled by IoT.

Increased servicing will be required of automated equipment. Specialized equipment makers will be positioned to create new revenue streams by providing maintenance services on a predictive basis with the use of sensors.

Ability to sense demand in real-time and respond by changing prices or promotions through the utilization of segmented logistics, inventory and performance capacities, will allow for optimization of integrated responses.

Re-shoring will remain a focus as manufacturers search for efficiencies and innovation, but supply chains will still be complicated, requiring increased visibility provided by the industrial IoT.

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While labor and production in emerging markets manufacturing has been appealing, improvements in innovation and product quality will keep production facilities running and entice new facilities to open, which will compete with re-shoring.

Faster times to market with more specific products and shorter lifecycles (PLM) will result in short-term shifting and outsourcing of logistics facilities, production and suppliers. Manufacturers will have to quickly onboard suppliers and partners to support rapid product development and match the capabilities and products desired by customers.

3D printing will become central to manufacturing strategy. Additive manufacturing will provide additional flexibility for service parts or unique products with short life cycles. These capabilities will flourish and will be adopted as a central part of a manufacturing strategy.

Manufacturers will continue to focus on maintaining cost and service certainty, even in the face of adverse events and risks. Scenario and response planning will require processes spanning multiple departments with the ability to understand forecasted outcomes, and manage real-time deviations from planned outcomes.

Manufacturers who embrace The Digital Enterprise concept will differentiate themselves and attract the best, most sought after talent.

With the rise of IoT and the ability to make massive amounts of data actionable through streaming analytics and dynamic, structured collaboration, governments will continue to increase funding for groups to create a new manufacturing revolution.

Baburajan K
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  • Sandy Montalbano

    Companies are shifting manufacturing closer to customers because localization often reduces total cost therefore many times it makes more sense to produce a product in the market it is going to be consumed in.

    Large companies like Caterpillar use this concept to produce near consumers, shortening supply chains, reducing shipping and moving products to consumers more quickly.

    Changes in the global manufacturing market, technology and the benefits of locating manufacturing closer to customers are giving companies more options to reshore and manufacture competitively. Companies are investing and reshoring because it makes good economic sense to do so.

    Automation, Lean processes and new technology are tools that can increase productivity and competitiveness. When productivity is increased, it reduces the Total Cost vs. offshore and boosts competitiveness.

    In order to help companies decide objectively to reshore manufacturing back to the U.S. or offshore, the not-for-profit Reshoring Initiative’s free Total Cost of Ownership Estimator can help corporations calculate the real P&L impact of reshoring. or offshoring.