Benoit Wambergue, VP of cloud products strategy at supply chain technology specialist Forterro, discusses the future prospects of lean manufacturing and how data-driven processes can help to keep the industry moving in the right direction despite strong headwinds.
The aftershocks of the COVID-19 pandemic and ongoing disruption to supply chains as a result of the war in Ukraine have led to many experts predicting the end of lean, or just-in-time (JIT), supply chains.
As manufacturers look to reduce the risk from international disruption with more localised supply chains, balancing the fine line between increasing resilience and the impact on the bottom line could bring further challenges for small scale manufacturers.
Over recent years, manufacturers have become accustomed to constantly absorbing the aftershocks of global disruption impacting their supplies. Companies transporting products across the world are currently facing simultaneous challenges caused by political unrest, natural disasters, collapse of financial markets, the longer-term effects of the pandemic and, for the UK, the departure from the EU.
Earlier this year,Made UKfound that 40% of manufacturing reshoring is returning from China, over 30% from Eastern Europe and almost 20% from India. Infact,1 in 20 UK businessesreported that they had made changes to supply chains because of the end of the EU transition period.
Earlier this year,
Made UK
found that 40% of manufacturing reshoring is returning from China, over 30% from Eastern Europe and almost 20% from India. Infact,
1 in 20 UK businesses
reported that they had made changes to supply chains because of the end of the EU transition period.
Most digitally advanced and forward-thinking companies are getting closer to achieving a state of intelligent automation than they may realise. By adopting digital transformation they are in turn increasing automation, efficiency, and resilience. But55%of data being collected is currently wasted because businesses either don’t know how to use it or aren’t sure it’s been accurately captured.
Most digitally advanced and forward-thinking companies are getting closer to achieving a state of intelligent automation than they may realise. By adopting digital transformation they are in turn increasing automation, efficiency, and resilience. But
55%
of data being collected is currently wasted because businesses either don’t know how to use it or aren’t sure it’s been accurately captured.
Effective use of data paired with higher visibility allows manufacturers to define ‘time’ and adjust its JIT inventory processes to shorten lead times, optimise ordering and control costs.
Lean manufacturing aims to eliminate waste and increase profits whilst passing on benefits to customers. Waste can be as a result of uninspired workers, poor processes or unused materials. The four key benefits to lean are quite simple in theory; Waste is eliminated, costs are reduced, quality is improved, and efficiency is increased.
I say in theory because in practice it can take a lot of time and effort to get systems in place and staff onboard but implementing an ERP system is one of the simplest ways to streamline your productivity and efficiently manage your resources.
In fact, I cannot emphasise just how important it is to have all employees committed to new systems and processes. For many manufacturing businesses planning to implement a new system, securing C-suite buy-in is often the most immediate consideration, but it is the workers on the factory floor who are the most valuable for success.
Whilst the quality of data is key, so are the users collecting it; it’s vital they’re offered highly engaging means to record high quality data in order to leverage more advanced technologies like AI and machine learning.
A JIT supply chain is still possible, despite global and local challenges, but companies must take control of their data and processes to make it work seamlessly. By tying together the plethora of processes needed to run a business, you enable the flow of data between them, meaning you gain resilience, real-time agility, and, as a result, growth.
Data-driven analytics can be extremely powerful in solving previously unsolvable problems, and sometimes even unknown ones too, such as hidden congestion, operational stringency, and areas of disproportionate changeability. As companies get better atunderstanding and utilising their data more quickly and easily, the data flow between processes can also support continuous improvements in quality and production planning.
By pulling data from internal and external sources, you can not only reveal the cause of issues, but you can begin to identify trends. Forward-thinking companies are also using artificial intelligence (AI) and machine learning (ML) to forecast demand and service quality. Together AI and ML can offer defined planning and preparation for problems, even implementing solutions through automation before it can crop up.
The constant evolution of today’s world has hugely impacted the priorities of industries, businesses and individuals. We face a change of choices, needs, opinions, demographics, culture and diversity – it’s never been more important to make just-in-time supply chains more efficient.
Data is fast becoming something that makes or breaks a business, it offers a competitive edge in increasingly aggressive markets. Embracing digitalisation will allow every sector to become more resilient, agile and responsive.
Just-in-time supply chains aren’t going anywhere; data and its intelligent and innovative use is shaping its future.