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7THANNUALSTATEOFSMARTMANUFACTURINGREPORTCHAINPLANNINGEDITIONRespondingtomarketadversitywithagility,improvedprocesses,andtechnologyadoptionINTRODUCTIONINTRODUCTIONSMARTMANUFACTURING:TheSMARTMANUFACTURING:Theintelligent,real-timeorchestrationandoptimizationofbusiness,physical,anddigitalprocesseswithinfactoriesandacrosstheentirevaluechain.Resourcesandprocessesareautomated,integrated,monitored,andcontinuouslyevaluatedbasedonallavailableinformationasclosetorealtimeaspossible.MESAInternationalThe2022StateofSmartManufacturingReportuncoveredtheongoingchallengesmanufacturersfacewithinthesupplychaincrisis,andthestruggletoregaincontrolovercriticalcommodities,supplierlongevity,technologyinnovations,andlogisticalcomplexities.ThisstudyfromPlexSystems,aRockwellAutomationcompany,incollaborationwithHanoverResearch,surveyed321globalmanufacturerswhocommunicatedtheneedforagility,technologyadoption,andimprovedprocessestorespondtomarketadversity.WHATISSUPPLYCHAINMANAGEMENT?Supplychainmanagement(SCM)WHATISSUPPLYCHAINMANAGEMENT?Supplychainmanagement(SCM)referstotheprocessesofcreatingandfulfillingdemandsforgoodsandservices.Itencompassesatradingpartnercommunityengagedinthecommongoalofsatisfyingendcustomers.—Gartner?ITGlossary,“SupplyChainManagement”,2022GARTNERisaregisteredtrademarkandservicemarkofGartner,Inc.and/oritsaffiliatesintheU.S.andinternationallyandisusedhereinwithpermission.Allrightsreserved.||StateofSmartManufacturingReport|SupplyChainPlanningEdition 2||StateofSmartManufacturingReport|SupplyChainPlanningEdition PAGE5 SMARTMANUFACTURINGADOPTIONACCELERATEDTechnologyandautomationaredrivingthenextgenerationofmanufacturing,andsmartmanufacturingadoptionwillcontinuetoacceleratein2022.Modularizationofsoftware,whichallowsforincrementaltechnologyadoption,isgainingtractionasmanufacturerslooktobecomemoreagileinthefaceofadversity.Smartmanufacturingadoptionby50%year-over-year.Supplychainplanningranks2ndintermsoforganizationalcriticalcomponents.BarrierstoentryareleadingtoahigherlevelofadoptionandamoreattractiveROI.
THEPANDEMICEXPOSEDALACKOFCOMPLETESUPPLYCHAINPLANNINGSOLUTIONSThe2021and2022StateofSmartManufacturingReportsmadeclearthatthepandemicexposedandexacerbatedpre-existingconditionsthatmanufacturershadpreviouslytoleratedorusedband-aidsolutionstoaddress.Thebrittlenatureofsystems,processes,andsupplychainsolutionsthathadhistoricallymeasuredas“goodenough”arenolongeradequate.Modernsupplychainmanagementsolutionsneedtoaccountforthecomplexitiesoftoday.Withover800,000unfilledmanufacturinganewapproachisneededtosolvefortheskilledworkershortageanditsimpactonsupplychains.Riskmitigationrequiresresiliencybuiltonalternatesuppliers,constantmonitoring,andvigilantcybersecurity.
ONCEOVER-HYPEDTECHNOLOGIESARESOLVINGTODAY’SPROBLEMSTechnologiesthatwereonceviewedasover-hypedandunlikelytocontributeinameaningfulwayarenowdeemedvitaltosuccess.Cloud,industrialhardeneddevices,andprocessautomationarehelpingcompaniesovercomechallengeswiththeskilledworkershortage,supplychainmanagement,andriskmitigation.Additionally,machinelearning/AIaregainingmainstreamadoptiontosupportsupplychainplanningcomplexities.80%oforganizations’softwareusageobjectivesaimtoconnectpeople,systems,machines,andsupplychains.75%ofrespondentsviewtechnologyasasolutiontoaddressworkforcechallenges74%ofrespondentsareactivelyusingorareplanningtousemachinelearning/AI,especially83%EXECUTIVESUMMARYofsmart83%EXECUTIVESUMMARYisa
managethecomplexitiesofsupplychainplanning.TABLEOFCONTENTSTABLEOFCONTENTSStayingcompetitivein2022andbeyond 5TABLEOFCONTENTSSECTION1:TheCurrentStateofSupplyChainPlanning 6Industryobstaclesandoutlook 7Theaccelerationofsmartmanufacturingadoption 8Missioncritical:Supplychainplanning’simportance 9SECTION2:BiggestChallengesforSupplyChainLeaders What’simpactingsupplychainthemost? 11Theshortcomingsoftraditionalsupplychainsolutions 12Supplychainplanningchallengesnowandinthefuture 13SECTION3:TheFutureofSupplyChainPlanning Unlockingthefutureofsupplychainwithtechnology 15Plannedinvestmentleansheavilytosupplychainplanning 16Howtorecognizeaneffectivesupplychainplanningsolution 17Thecontinuitythatcomeswithcloud 18Perceivedbarrierstosmartmanufacturingadoption 19
SECTION4:Action Fivestepstostartingonyourroadtoadoption 21Step1:Identifystakeholdersandagreeonyourgreatestneed 21Step2:Makethebusinesscaseforinvestment 22Step3:Researchandselectyoursolution(s) 22Step4:Designanddeploythesolution(s) 23Step5:Managechangeanddriveadoption 23Conclusion 24stepstotechnologyadoption[checklist] 25SurveyDemographicsandFirmographics STAYINGCOMPETITIVEIN2022ANDBEYONDSTAYINGCOMPETITIVEIN2022ANDBEYONDSTAYINGCOMPETITIVEIN2022ANDBEYOND
Thelastyearshavenotbeenkindtosupplychainplanningprofessionals.Tariffs,geopoliticaltensions,apandemic,numerousseafreightissues,andthewarinUkrainearesomeofthemanyissuesthathaveaffectedglobalsupplychains.businessleadersarelookingforanswerstopowerbusinesscontinuitydespitethevolatilityaroundtheworld.The2022StateofSmartManufacturingReportasked321manufacturershowtheyarecurrentlymanagingsupplychainplanningandhowtheyexpecttomanageitinthefuture.Belowaresomeofthekeyfindings:70%ofrespondentsareusingsupplychainplanningsystemsthatrelyonspreadsheetsandmanualprocesses.Supplychainplanningranks2ndintermsoforganizationalcriticalcomponents.80%ofsoftwareusageaimconnectpeople,machines,andsupplychains.Thestatsaboverevealanevolvingstory.Oneofthefindingsfromthemainreportwastheaccelerationofsmartmanufacturingadoption,whichincreased50%year-over-year.Evenifthispacedeceleratessignificantly,seventy-fivepercentofmanufacturersareexpectedtohaveadoptedsomecomponentofsmartmanufacturingbynextyear.
Thepaceofchangeissofastrightnowthatit’simportantforbusinessestoadoptamodernsupplychainplanningsolutionjusttokeeppacewiththecompetition.Thecompaniesthatrespondedthattheircurrentsolutionsstillrelyonspreadsheetsandmanualprocessesaregoingtofallbehind,whilethosethatmovetowardsdigital,connectedsoftwaresolutionswillreapthebenefits.Supplychainplanningsolutionspullindatafrommultiplesourcesinrealtimetoprovidethemostaccurateinformationpossibleandmodeldifferentoptionswhenthereissomeformofdisruptiontotheplan.Thishelpstobetterconfrontchangeandkeeppacewithsupplychainvolatility,fromthecostofmaterialscomingintoreforecastingandshippingout.Thisreportwillhelpyoubenchmarkyoursupplychainplanningeffortsandtechnologyusageanduncoverbestpracticestohelpyourorganizationstaycompetitiveandthrivenotjusttodayortomorrow,butnextyearandeveryyearthereafter.Startyourjourneytoday.rauninAraSurenian,VPProductManagementPlexSystems,aRockwellAutomationCompanySECTION1:THECURRENTSTATEOFSUPPLYCHAINPLANNINGTechnologyandautomationarepoweringtheleadersintoday’smanufacturingspacewhiledisruptionisdrivingthenextgenerationofsupplychainplanninginnovation.|StateofSmartManufacturingReport|SupplyChainPlanningEdition 6INDUSTRYOBSTACLESANDOUTLOOKIt’simpossibletodescribethecurrentstateofmanufacturingwithoutaddressingoneofthebiggestfactorsimpactingtheworld—2020and2021weredefinedbythedevastatingrippleeffectsofCOVID-19.particularlyparticularlywithinsupplychains.Asaresult,digitalforecastingandplanningwhereamanufacturercanplanandadjustallthewaydowntotheworkcenterisontherise.Adversitybreedsinnovationandmanufacturersarequicklyadaptingtheirsupplychainplanningapproachtobringinmoretechnologyandalignmentacrosstheentireorganization.
Digitalmanufacturersbenefitedfroma26%increaseintheirrevenueperformanceindex(RPI)anda27%increaseintheirprofitperformanceindex(PPI),whereasnondigital“manufacturersexperienceddecreases“Growthobstacles 2021Report—occurredtheworstpartofthepandemic
2022Report—respondent’sattimeofsurvey(Oct2021)
of9%inRPIand2%inPPI.—ReidPaquinResearchDirector,IDCManufacturingInsightsIDCTechnologySpotlight,sponsoredbyPlex,TheImportanceofManufacturingAutomationforDigitalTransformation,doc#US48798322,January2022COVID-19 Shortageofskilled
Securityrisks SupplydisruptionTHECURRENTSTATEOFSUPPLYCHAINPLANNINGQ:Whichofthefollowingarethebiggestobstacle(s)toyourorganization’scurrentgrowthasofcalendaryearQ32021?(n=321)THECURRENTSTATEOFSUPPLYCHAINPLANNING
|StateofSmartManufacturingReport|SupplyChainPlanningEdition 7THEACCELERATIONOFMANUFACTURINGADOPTIONWhileadoptionacceleratedinthewakeofthepandemic,thissurveyshowsthatitactedasacatalysttoforcedecisionsalongwiththespeedofadoption.Supplychainplanningtechnologyadoptionratesappeartobeclimbing;however,duringtimesofturmoiltheabilityfororganizationstorespondquicklyandmaneuverseamlesslyisstilllagging.50%year-over-yearincreaseinsmartmanufacturingadoptionrates50%60%ofallcompaniesarenowusingeitherafullyintegratedsolutionorhavesomecomponentsofsmartmanufacturinginadoption60%75%oforganizationswillhavesomecomponentsofsmartmanufacturinginadoptionbytheendof202275%
KEYSOLUTIONSEnterpriseResourcePlanning(ERP)automatesfront-andback-officeprocesses,includingfinancialmanagement,revenuemanagement,humancapital,ordermanagement,billing,andinventory.ManufacturingExecutionSystem/Suite(MES)tracksanddocumentsthetransformationofrawmaterialsintofinishedgoods,providingreal-timeproductionmanagementtodriveenterprise-widecompliance,quality,andefficiency.QualityManagementSystem(QMS)standardizesandautomatesqualitydocumentation,processes,andmeasurements.SupplyChainPlanning(SCP)combinesdatafrommultipledepartmentsacrossthebusinesstosyncdemandandsupplyforecastingtoimproveinventoryaccuracyandproductionmanagement.2021
2022
projected
ProductionMonitoringprovidesseamlessconnectivitytomachinesontheplantfloor,deliveringtransparent,real-timeoperationalKPIsanddashboardstodrivecontinuousimprovements.5%2%2%5%5%2%2%5%10%18%15%28%40%40%60%75%MESAutomationandOrchestrationconnectsyourMEStotheplantedgetocontrolinformationflow,processes,andworkcentersetup.Noplans
Interest
Evaluating
AdoptedorexecutedTHECURRENTSTATEOFSUPPLYCHAINPLANNINGQ:Towhatextenthasyourorganizationadoptedsmartmanufacturing?(n=321)THECURRENTSTATEOFSUPPLYCHAINPLANNING
|StateofSmartManufacturingReport|SupplyChainPlanningEdition 8THECURRENTSTATEOFSUPPLYCHAINPLANNINGTHECURRENTSTATEOFSUPPLYCHAINPLANNINGHowdomission-criticalsmartmanufacturingsolutionsrank?24%ProductionMonitoringMISSIONCRITICAL:SUPPLYCHAINPLANNING’SIMPORTANCE24%ProductionMonitoringSupplySupplyChainPlanning 21%Quality21%QualityManagementSystemManufacturingExecutionManufacturingExecutionSystem 19%Enterprise19%EnterpriseResourcePlanningAssetPerformanceManagementAssetPerformanceManagement16%Q:Overthelastyear,howbigofarolehaseachofthelistedcomponentsofsmartmanufacturingplayedinyourorganization’soperations?(n=321)|StateofSmartManufacturingReport|SupplyChainPlanningEdition 9SECTION2:THEBIGGESTCHALLENGESFORSUPPLYCHAINLEADERSTheCOVID-19pandemichasexposedthedepthoflingeringobstaclesinthemanufacturingindustryandmadeitimpossibletoignorethemanylonger.Ithasalsoexposedthebrittlenatureofsystems,processes,andsupplychainsolutionsthathadhistoricallymeasuredas“goodenough”untilthetestofglobalchange.|StateofSmartManufacturingReport|SupplyChainPlanningEdition 10||StateofSmartManufacturingReport|SupplyChainPlanningEdition PAGE13WHAT’SIMPACTINGSUPPLYCHAINTHEMOST?Atthetimeofthissurvey,COVID-19,theskilledworkershortage,andcybersecurityrankedwithanoutsizedinfluenceonglobalsupplychains.Theimpactfromthesebig3challengeshascausedlimitedavailabilityofrawmaterials,negativelyimpactedlogisticsandplanning,andtriggeredregulationsincludinggovernmentclosures,borderclosures,andongoingquarantinelockdowns.Currently,geopoliticaluncertaintyandnaturaldisastersarealsoimpactingsupplychainsbycreatingsurgesindemand,disruptionsinavailabilityanddeliverability,materialshortages,andincreasingcosts.Therehavealsobeennumerousissueswithseashipments,includingtheFelicityAce(carryingluxurycars)sinkingandTheEverForward(carrying12,000cargocontainers)runningaground.Disruptionisonecertaintyamidstalltheuncertaintyinsupplychains,andtheimportanceofplanningforthisisparamount.
Thecomingmonthscouldturnoutbecriticalforsupplychainleaders.Somecompanieswillbuilduponthemomentumtheygainedduringthepandemic,withdecisiveactionadapttheirsupplychainfootprint,modernizetheirtechnologies,andbuildtheircapabilities.Othersmayslipback,revertingoldofworkingthatleavethemstrugglingcompetewiththeiragilecompetitorsoncostorservice,and“stillvulnerabletoshocksanddisruptions.“McKinsey&Company:HowCOVID-19isreshapingsupplychainsNovember23,2021THEBIGGESTCHALLENGESFORSUPPLYCHAINLEADERSTHEBIGGESTCHALLENGESFORSUPPLYCHAINLEADERSCOVID-19 Shortageofskilled
Cybersecurity
uncertainty
Naturaldisasters
Authors:KnutAlickeisapartnerinMcKinsey’sStuttgartoffice,RichaGuptaisanassociatepartnerintheNewJerseyoffice,andVeraTrautweinisanexpertintheZurichoffice41%ofrespondentsusesupplychainsolutions41%ofrespondentsusesupplychainsolutionsmeetspecificinitiativesthroughefficiencyandlesswaste70%70%ofrespondentsareusingsupplychainplanningsystemsthatrelyspreadsheetsandmanualprocessesHowever,thatwon’tbeenoughgoingforward.Nomatterhowsophisticatedthesetypesofsolutionsmightbe,manualprocesses–orsolutionstiedtomanualprocesses–willneverrespondasquicklyasrealityischanging.Theyalsocan’teffectivelyexploderequirementsthroughabillofmaterials(BOM)ordistributionnetwork.Further,thecapabilitytoconnectdemandandsupplythroughexecutioniscriticaltoensuringaholisticviewofdemandandsupplyacrossanorganizationandthroughthesupplychain.Onlyadedicatedsupplychaintechnologytiedtomachinelearningcanhandlethislevelofcomputation.THEBIGGESTCHALLENGESFORSUPPLYCHAINLEADERSSupplychainplanningsolutionspullindatafrommultiplesourcesinrealtimetoprovidethemostaccurateinformationpossible.ThisbetterTHEBIGGESTCHALLENGESFORSUPPLYCHAINLEADERSmeetschangingneedsandkeepspacewithsupplychainnuances,fromthecostofmaterialscomingintoreforecastingandshippingout.
Q:Whattechnologieshasyourcompanyinvested/doesyourcompanyplantoinvestinthatyoufeeldirectlysupportyourorganization’sESG/sustainabilityefforts?(n=321)FORCHAINPLANNINGCHALLENGESNOWANDINTHEFUTUREWhileadoptionofsupplychainplanningsolutionshasincreased,it’simportanttoassesswhetheryourcurrentsolutionaccountsfortheincreasinglycomplicatedsupplychaingoingforward.
“Beforeadoptingacloud-basedsupplychainplanningsolutionfromPlexSystems,wewereoftenindangerofoverestimatingourinventoryandshort-shippinga“30%ofrespondentsin2017wereusingachainplanningsolution
60%ofrespondentswereprojectedtouseasupplyplanningsoftwaresolutionby2022
78%ofrespondents2022areusingasupplychainplanningsoftwaresolution
customer,orunderestimatinginventoryandbuildingmoreproductunnecessarily.NowwegetCostwascitedasthetopbarriertoadoptingasupplychainplanningsoftwaresolution.However,astheheadlineshaveshownoverthepastyear,manycompanieshavebornetheburdenwithexpeditedshippingcosts,productiondelays,anddecreasedcustomersatisfactionthatlikelyfaroutweighthecostofasystemimplementation.
accurateinventorywhichhashadahugeeffectonourbottomline.—JeffBender35%
32% 28%
MaterialsManager,CoastalAutomotiveTHEBIGGESTCHALLENGESFORSUPPLYCHAINLEADERSCost/expense LackofskillsettosmartmanufacturingTHEBIGGESTCHALLENGESFORSUPPLYCHAINLEADERSimplementation
Employeeresistancetotechnologyandchange
Difficulttoreplace/upgradelegacysystemSECTION3:THEFUTURECHAINPLANNINGOnthesurface,it’snotalwaysclearhowbeneficialanewtechnologywillbe.Itjusttakestherightbusinesscase.technologythatwaspreviouslyconsideredover-hypedisnowsolvingsomeofthemajorchallengesthatsupplychainleadersface.|StateofSmartManufacturingReport|SupplyChainPlanningEdition 14||StateofSmartManufacturingReport|SupplyChainPlanningEdition PAGE17UNLOCKINGTHEFUTUREOFSUPPLYCHAINWITHTECHNOLOGYThediscussionaroundtechnologyisevergreen—leadersandoperatingprofessionalswanttoadoptthetechnologythatwillmaketheirbusinessbetter,provideanedgeagainstthecompetition,anddeliveranenhancedexperiencetocustomers.Alongthispath,previously“over-hyped”technologyhasoftengrowntobeessentialtobusiness.theinternet,forexample.Dideverybusinessexpectthattheinternetwouldbeessentialforbusinesswhenitwasinitsinfancy?Likelynot,becausetherewerenopracticalusecases,availabilityandadoptionvaried,andmanypeopledidn’tseeasensiblecorrelationbetweenAOL/dial-upinternetandbusinessastheyknewit.Buthereweare,livingintheageofcloudcomputing(onceconsideredover-hypeditself),beginningtoseethecorrelationofnext-generationtechnologythatispushingthroughthehypetofindmainstreamusecasesandadoptionduetolowerbarrierstoentryinavailability,durability,andusability.Thenextfrontierinsupplychainplanningistheconnectionofmachinedatatoincreaseforecastaccuracy.Usingartificialintelligenceandmachinelearningtoimproveforecastingisnotnew–weatherforecastsrelyheavilyonthistechnology.Byimplementingmachinelearningintosupplychainplanning,theaccuracyofforecastingindemandplanningcanincrease5-10%,enablingreductionsininventoryandimprovementsinrevenue.
Organization’ssoftwareusageobjectives80%80%Toconnectpeople,systems,machines,andsupplychains79%79%Toautomateprocesses77%77%Totrackplantfloorproductiondata77%77%Togainanalyticsandinsightsintothebusiness75%75%Totrackcorporatedata(e.g.,financials,humancapitalmanagement)THEFUTUREOFSUPPLYCHAINPLANNINGTHEFUTUREOFSUPPLYCHAINPLANNINGQ:Forwhichofthefollowingbusinessoroperationalactivitieshasyourorganizationusedsoftware(e.g.,enterpriseresourceplanningsystems,manufacturingexecutionsystems,IndustrialIoT,supplychainplanning,analytics,qualitymanagementsystem)and/orhardware(e.g.,sensors,servers,gauges)inthelast12months?(n=321)PLANNEDINVESTMENTLEANSHEAVILYTOSUPPLYCHAINPLANNINGOrganizationsarerecognizingthevalueofsmartmanufacturingandtheirplannedinvestmentchoicesshowtheimportanceoftechnologyforthefutureofmanufacturing.Supplychainplanningrankedasthesecondmostpopularchoiceforinvestment.
Adoptingandadaptingnewtechnologiesandtechnologythemes(groupings)ishelpingestablisharobustandresilientinfrastructure“forweatheringbusinessdisruptionsandkeepingfocusonbusinessoutcomes.“THEFUTUREOFSUPPLYCHAINPLANNINGTHEFUTUREOFSUPPLYCHAINPLANNINGBENEFITSOFSUPPLYCHAINPLANNING Connecteddecisionsacrosstheorganization Resiliencyintimesofuncertainty Optimizationofworkcenters —Gartner?,The2022StrategicSupplyChainBENEFITSOFSUPPLYCHAINPLANNING Connecteddecisionsacrosstheorganization Resiliencyintimesofuncertainty Optimizationofworkcenters GARTNERisaregisteredtrademarkandservicemarkofGartner,Inc.and/oritsaffiliatesintheU.S.andinternationallyandisusedhereinwithpermission.Allrightsreserved.HOWTORECOGNIZEANEFFECTIVESUPPLYCHAINPLANNINGSOLUTIONAneffectivesupplychainplanningsolutionwill:inmachinelearningandgenerateabetter/optimalforecastConnectmachinedataforschedulingandexecutingthatplaninthemostoptimalmannerSupplychainplanningwithmachinelearningcreatesaclosedloopthatisconstantlyimproving
Whileyoucan’tstopsupplychaindisruptioninitstracks,youcanmitigatesomeriskbyfocusingonwhatyoucancontrol“Aneffectivesupplychainplanningsolutionshouldbefocusingonwhatyoucancontrol“THEFUTUREOFSUPPLYCHAINPLANNINGTHEFUTUREOFSUPPLYCHAINPLANNINGSuccessfulexecutionandcommunicationensurestheeffectivegrowthThemoreinputsyouget,thehigheryourforecastaccuracybecomesAmoreaccuratesupplyplanimprovesSuccessfulexecutionandcommunicationensurestheeffectivegrowthThemoreinputsyouget,thehigheryourforecastaccuracybecomesAmoreaccuratesupplyplanimprovesexecutionwithsuppliersThehigheryourforecastaccuracythemoreaccurateyoursupplyplanbecomesAuthor,SupplyChainPlanningforDummies|State|StateofSmartManufacturingReport|SupplyChainPlanningEdition 18WHYUSECLOUDTECHNOLOGYRelievethestrainonhiringforITFreeupresourcesformorevalue-addingbusinessfunctionsEnablebusinesscontinuityProvideriskmitigationhigh-gradesecurityWidenaccesstoskilledworkforcewithremoteaccessibledataTHEFUTUREOFSUPPLYCHAINPLANNINGTHECONTINUITYTHATCOMESWITHCLOUDUsingaprovenmulti-tenantcloudSaaSsolutionlimitsrisksandkeepsyouconnectedtoyoursupplychaintomakedecisionsinreal-timefromanywhere.Cloudtechnologyalsoprovidescybersecurity,canscalewithyourbusiness,andiscontinuouslyimprovingwiththelatestiterationofsoftware.Effectivesupplychainplanningsolutionsthatareinthecloudmakedecipheringdatasimpleandplanningmanageable.Byunitingyourorganizationandincorporatingallplanningvariablesacrossthesupplynetwork,businessescanaccuratelyforecastandsolveinventoryproblemsquicklyandproactively.85%85%ofrespondentscommunicatedtheiroveralloptimismforsmartmanufacturingTHEFUTUREOFSUPPLYCHAINPLANNINGTHEFUTUREOFSUPPLYCHAINPLANNINGPERCEIVEDBARRIERSTOSMARTMANUFACTURINGADOPTIONIfsmartmanufacturingtechnologyistheanswertotheindustry’sbiggestchallenges,what’sstoppingsomecompaniesfromadoptingit?Manufacturersarealreadydealingwithalimitedtalentpoolandshiftingbusinessprioritiesduetochallengesacrosstheworkforceandsupplychain,allthewhiletryingtobalancetherightapproachestoriskmitigation.Barrierstoadoptingsmartmanufacturing36%32%32%31%30%27%16%Cost/expenseLackofskillsettomanageDifficulttoreplace/EmployeeresistanceLackofknowledgeonLackofskillsettotakeNosustainedsmartmanufacturingupgradelegacysystemstotechnologyadoptionsmartmanufacturingadvantageofsmartleadershipsupportimplementationandchangetechnologyandbenefitsmanufacturingQ:Whatarethebarrierstoadoptingsmartmanufacturing?(n=321)|StateofSmartManufacturingReport|SupplyChainPlanningEdition 19SECTION4:TAKINGACTIONSmartmanufacturingenablesmanufacturerstoadapttoachangingmarketandunlocklong-termopportunitiesbyconnectingandautomatingtheirsupplychain.Usetheinformationinthisreporttohelpyourbusiness—andyourpeople—regardlessofwhereyouareinthetechnologyadoptionprocess.|StateofSmartManufacturingReport|SupplyChainPlanningEdition 20||StateofSmartManufacturingReport|SupplyChainPlanningEdition PAGE25GETTINGSTARTEDGUIDE
STEP1IDENTIFYKEYSTAKEHOLDERSANDAGREEONYOURGREATESTNEEDWhataretheoperationalchallengesyou’retryingtosolve?HaveyouassembledtheWhataretheoperationalchallengesyou’retryingtosolve?Haveyouassembledthestakeholders?Whereareyourinformationgaps?TAKINGACTIONMakethebusinesscaseforinvestmentResearchandselectyoursolution(s)Designanddeploythesolution(s)Managechangeanddriveadoption
Gatherthepeopleconnectedtothischange–bothdecisionmakersandsystemusers.Diverseperspectivesclarifythesolutionsneeded,whetherdisconnectedsystems,people,processes,supplychains,unexpecteddowntime,poorquality,lackofvisibility,control,and/orsomethingelse.KEYQUESTIONSTOANSWER:KEYQUESTIONSTOANSWER: STEP2MAKETHEBUSINESSCASEFORINVESTMENT
STEP3RESEARCHANDSELECTYOURSOLUTION(S)Developyourbusinesscasebyhighlightingincreasedcontrol,efficiency,andsavingsgained.Gatherrequirementsandincludetheimportanceofadaptability,security,andriskmitigation.
Dothework.Therearemanysolutionsavailable,anditisimportanttodoyourresearch.Narrowyourpotentialsolutionsandreviewthefollowingquestionswiththekeystakeholders.TAKINGACTIONTAKINGACTIONWhichuseWhichusecasesoffertherightbalanceofvaluecreationandtime-to-value?Whatrisksshouldbeconsideredandmitigated?WhatdoessuccesslookKEYQUESTIONSTOANSWER:Doesthesolutionmeetyourrequirementsandbusinessobjectives?Willitbeabletosupportyouinthefuture?Willthesolutionprovidethedesiredefficiency?KEYQUESTIONSTOANSWER: STEP4DESIGNANDDEPLOYTHESOLUTION(S)Selectanimplementationpartnerandthemapthatyouwillfollowforasuccessfulprocess.Oncecreatedandagreedonbyyourstakeholders,begindeployment.
STEP5MANAGECHANGEDRIVEADOPTIONToeffectivelyintegratethechangethatsmartmanufacturingwillbringintoyourculture,youwillneedsponsorship,messaging,andaccountability.TAKINGACTIONTAKINGACTIONHavethestak
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