2023 proved challenging for manufacturers, marked by Deloitte‘s research indicating contraction in the sector due to geopolitical tensions, economic uncertainty, and climate change.
Predictions for 2024 also paint a bleak picture, urging modern manufacturers to scrutinize processes, supply chains, and automation levels to thrive in this demanding environment. Tailored ERP solutions emerge as game-changers, addressing unique challenges and opportunities.
Digital innovations empower manufacturers to streamline processes, adapt to market shifts, and meet evolving customer, supplier, and employee expectations.
Notable tools and technologies for 2024 include:
1. Securing AI Opportunities:
Generative AI, gaining traction since 2023, is expected to integrate into business systems and processes, particularly in supply chain management. While offering tremendous potential, manufacturers must navigate risks and challenges, from data quality issues to ethical concerns.
2. Prediction is Better than Cure:
AI-driven predictive maintenance, as per Deloitte, can enhance equipment uptime by 20%, reduce maintenance costs by 10%, and halve maintenance scheduling time. ERP technologies support predictive maintenance by simplifying data collection and analysis, aiding in developing maintenance plans, reducing downtime, and enhancing operational efficiency.
3. Automation, Personalization:
AI-driven automation is crucial in modern manufacturing, enabling streamlined processes, improved operational efficiency, and better forecasting of demand. With a shift towards personalization, manufacturers must create custom products to stay competitive.
4. Digital Supply Chain Efficiency:
In 2024, manufacturers will leverage digital platforms, like ERP systems, to enhance supply chain resilience, visibility, and agility. Digital supply chain solutions provide a unified view of operations, streamlining and automating activities without increasing operating costs.
Given the anticipated challenges in 2024, embracing new technologies becomes imperative for manufacturers. Emerging tools not only increase visibility and communication but also centralize data collection and analysis, empowering businesses to make informed decisions and navigate tough times effectively.
By Mark Wilson, CEO of SYSPRO EMEA