{"id":81944,"date":"2022-02-01T07:25:53","date_gmt":"2022-02-01T15:25:53","guid":{"rendered":"https:\/\/oroinc.com\/b2b-ecommerce\/?p=81944"},"modified":"2024-01-05T06:27:09","modified_gmt":"2024-01-05T14:27:09","slug":"digital-transformation-in-manufacturing","status":"publish","type":"post","link":"https:\/\/oroinc.com\/b2b-ecommerce\/blog\/digital-transformation-in-manufacturing\/","title":{"rendered":"Digital Transformation in Manufacturing: All You Need to Know | OroCommerce"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">The digital landscape is constantly changing for manufacturers. Change is propagated by rapidly changing consumer expectations, connected devices and technology improvements in neighboring industries in the supply chain.\u00a0<\/span><span style=\"font-weight: 400;\">We are already seeing the effects that digital transformation in manufacturing has on businesses, their suppliers, customers, and other third parties. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">This has numerous advantages, such as helping businesses adapt to changes faster, or even anticipate changes before they occur &#8211; all crucially important to manufacturing. It\u2019s not surprising that IDC expects that by 2022, <\/span><a href=\"https:\/\/www.idc.com\/getdoc.jsp?containerId=prMETA46046420\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">half of all manufacturers<\/span><\/a><span style=\"font-weight: 400;\"> will be invested in improved resilience and artificial intelligence to drive productivity improvements.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">What is Digital Transformation in Manufacturing Industry Today<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The state of manufacturing is constantly changing due to volatility in global, economic, and policy decisions. From trade policy to AI to IoT, 2019 has seen a number of developments that promise disruption in this sector. The 2020s will see a continuation of this trend, with numerous areas in manufacturing accelerated by network capabilities of 5G, the greater push for IoT, Industry 4.0, machine learning and predictive analytics.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Customer expectations and solving customer pain points are still the main drivers for digital transformation within companies. With <a href=\"https:\/\/oroinc.com\/b2b-ecommerce\/digital-commerce-for-manufacturers\/\" target=\"_blank\" rel=\"noopener noreferrer\">eCommerce for manufacturers<\/a><\/span><span style=\"font-weight: 400;\">, CRM, and ERP platforms, customer data is more visible than ever and cannot be ignored by manufacturers in their transformation initiatives.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Challenges of Digital Transformation in Manufacturing<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Just like in any industry, there are many things that can hold manufacturers back from digital transformation initiatives, whether it\u2019s <\/span><a href=\"https:\/\/oroinc.com\/b2b-ecommerce\/blog\/successful-digital-business-transformation-part-1-selling-the-idea\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">selling the idea to upper management<\/span><\/a><span style=\"font-weight: 400;\">, or fighting over fears surrounding business and personnel resources. Nevertheless, starting the discussion can offer manufacturers a candid look at their own inefficiencies, their resource allocation procedures, and open them up to new technologies.<\/span><\/p>\n<ol>\n<li><span style=\"font-weight: 400;\"> Any digital transformation initiative can place demands on the IT department\u2019s technology stack and development structure. This may require the use of new release cycles, processes, APIs, or innovating in other areas of digital performance.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> Digitalization in the manufacturing industry incurs costs on human resources: the workforce can feel disillusioned in the face of changing workplace realities. Employee reluctance and communication issues also pose a challenge to manufacturers.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> Being in a dynamic and cash-sensitive industry, manufacturers need to carefully address any budget and resource limitations. This can lead to reservations about sticking to their digital transformation strategy.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> Manufacturing operations are complicated with tight schedules and numerous resource constraints. As a result, management doesn&#8217;t take kindly to ill effects on operations before seeing any benefits from their digital transformation.<\/span><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">Even though embarking on a digital transformation journey may be challenging, it\u2019s not done alone. There are numerous <\/span><a href=\"https:\/\/oroinc.com\/b2b-ecommerce\/blog\/top-digital-transformation-consulting-companies-list\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">digital transformation consultants<\/span><\/a><span style=\"font-weight: 400;\"> out there to assist manufacturers in their journeys, as well as many success stories involving businesses that have seen life-changing results.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Examples of Digital Transformation in Manufacturing<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">In the manufacturing industry, digital transformation is not just about automating the assembly line or better analyzing existing data. It involves a change in mindset, approaches and new ways of problem-solving. Here are just some ways that manufacturers transformed their businesses:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\">Selling to businesses is difficult and it can be counterproductive with a platform that doesn\u2019t address the needs of today\u2019s business buyers. <a href=\"https:\/\/oroinc.com\/b2b-ecommerce\/customers\/saltworks\/\" target=\"_blank\" rel=\"noopener noreferrer\">Saltworks<\/a>, a prominent salt manufacturer and distributor in the US,\u00a0started their digital transformation with the customer by implementing a unified B2B eCommerce solution for both their B2B and B2C operations.<\/li>\n<li style=\"font-weight: 400;\">The impact of big data in manufacturing cannot be understated: NIST has demonstrated that <a href=\"https:\/\/www.nist.gov\/system\/files\/documents\/itl\/iad\/Big-Data-Analytics-for-Smart-Manufacturing-Systems-Report.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">General Electric<\/a> increased production capacity up to 20% while lowering material consumption rates by 4% with machine learning alone.<\/li>\n<li style=\"font-weight: 400;\">One California-based fruit supplier <a href=\"https:\/\/www.automationworld.com\/home\/article\/13317244\/fruit-supplier-elevates-production-data-on-the-plant-floor\" target=\"_blank\" rel=\"noopener noreferrer\">increased production 50%<\/a> without hiring a single employee. Part of their solution was an automation system that includes history analysis, alarm notification, and other big data reporting capabilities.<\/li>\n<li style=\"font-weight: 400;\">With IoT supported by cloud systems such as Microsoft Azure, Tetra Pak was able to use <a href=\"https:\/\/news.microsoft.com\/transform\/total-package-tetra-paks-technology-keeps-food-drink-flowing-safely-from-farm-table\/\" target=\"_blank\" rel=\"noopener noreferrer\">real-time data<\/a> to accurately predict when their dairy processing equipment needs maintenance.<\/li>\n<li style=\"font-weight: 400;\">Inefficient data processing from wearables directly translates to inefficiencies in manpower. Honeywell and Intel created a <a href=\"https:\/\/www.iotone.com\/casestudy\/wearables-for-connected-workers\/c510\" target=\"_blank\" rel=\"noopener noreferrer\">Connected Worker Proof of Concept<\/a> to merge sensor-data with worker-worn devices.<\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400;\">Top 6 Digital Transformation Trends in Manufacturing<\/span><\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-81951 size-full\" src=\"https:\/\/oroinc.com\/b2b-ecommerce\/wp-content\/uploads\/sites\/3\/2020\/03\/digital-transformation-in-manufacturing.png\" alt=\"top digital transformation trends in manufacturing\" width=\"636\" height=\"762\" srcset=\"https:\/\/oroinc.com\/b2b-ecommerce\/wp-content\/uploads\/sites\/3\/2020\/03\/digital-transformation-in-manufacturing.png 636w, https:\/\/oroinc.com\/b2b-ecommerce\/wp-content\/uploads\/sites\/3\/2020\/03\/digital-transformation-in-manufacturing-384x460.png 384w, https:\/\/oroinc.com\/b2b-ecommerce\/wp-content\/uploads\/sites\/3\/2020\/03\/digital-transformation-in-manufacturing-367x440.png 367w, https:\/\/oroinc.com\/b2b-ecommerce\/wp-content\/uploads\/sites\/3\/2020\/03\/digital-transformation-in-manufacturing-175x210.png 175w\" sizes=\"auto, (max-width: 636px) 100vw, 636px\" \/><\/p>\n<h3><span style=\"font-weight: 400;\">Industry 4.0<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Industry 4.0 is a trend that combines traditional manufacturing and industrial factories with digital. Also referred to as \u201c<\/span><a href=\"https:\/\/www.weforum.org\/pages\/the-fourth-industrial-revolution-by-klaus-schwab\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">the fourth industrial revolution<\/span><\/a><span style=\"font-weight: 400;\">\u201d, the main purpose of Industry 4.0 is to automate production processes to the point where all processes are automated and controlled in real-time.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">An example of that could be a machine with a sensor that interacts with another machine based on the data they receive, all happening without the intervention of another human. In the future, Industry 4.0 can blur the line of actual and virtual warehouses that can free manpower for more effective collaboration.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">IoT\u00a0<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">One key technology of Industry 4.0 is Internet of Things (IoT), which is a network of interconnected physical objects that communicate based on calculated data, their environment, including data fed from outside. This can lead to new functions, services, and benefits for manufacturers.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The biggest IoT use cases lie in operations, asset management, and personnel management. For example, manufacturers can establish preventative maintenance programs with real-time monitoring, improve energy efficiency and working conditions through smart air management, risk management, worker productivity, more.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Machine learning<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">With the amount of data machines are collecting, it\u2019s easier than ever to utilize algorithms to quickly perform the best course of action among multiple options &#8211; something that would be too inefficient with humans. Today\u2019s machines have proven to us that quality is not sacrificed for efficiency, as machines can more carefully identify and anticipate which factors will impact assembly line speed or quality.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Some <a href=\"https:\/\/mobidev.biz\/services\/machine-learning-consulting\" target=\"_blank\" rel=\"noopener noreferrer\">examples of machine learning<\/a> can include suggesting the best course of action for employees, predict waiting times, shipping times, or behavior models for risk prevention. In addition, data generated by machines offer insights into all areas of the production process when integrated throughout the supply chain.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Robots<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Future robots aren&#8217;t projected to differ much from what we see in manufacturing today. What will change, however, is the learning aspect from previous behavior and the use of pattern recognition for improving results. The number of connected devices, how they interact with each other, and the volume of data are all expected to increase as well.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Against the backdrop of connectivity, robots will continue to innovate, particularly in the areas of autonomous driving, dexterous\u00a0carrying, moving, and so on. And, with movement data being connected with IT systems and teams across longer distances and even geographic locations, we will likely see this drive quicker and more effective business decisions.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">B2B eCommerce<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Today&#8217;s B2B eCommerce platforms must react to B2B buyer needs quickly, which tend to mirror those of B2C consumers. Preserving B2C-like experiences is difficult when B2Bs demand that custom checkout workflows, pricing rules, product data personalization, and other complex functions run in the background. Nevertheless, manufacturers such as <\/span><a href=\"https:\/\/oroinc.com\/b2b-ecommerce\/customers\/saltworks\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">Saltworks<\/span><\/a><span style=\"font-weight: 400;\"> and <\/span><a href=\"https:\/\/oroinc.com\/b2b-ecommerce\/customers\/hubbard\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">Samuel Hubbard<\/span><\/a><span style=\"font-weight: 400;\"> were able to digitally transform their stores by implementing <a href=\"https:\/\/oroinc.com\/b2b-ecommerce\/\">OroCommerce<\/a>, which allowed them to use a single website for segmentation and multichannel capabilities.<\/span><\/p>\n<p><a href=\"https:\/\/oroinc.com\/b2b-ecommerce\/customers\/saltworks\/\" target=\"_blank\" rel=\"noopener noreferrer\"><img decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/oroinc.com\/b2b-ecommerce\/wp-content\/uploads\/sites\/3\/2020\/03\/saltworks-digital-transformation-manufacturing-case-study.jpg\" \/><\/a><\/p>\n<p><span style=\"font-weight: 400;\">Aside from delivering the right product data to customers, B2B eCommerce platforms can automatically sync data with the ERP and WMS to cut down on inventory management efforts and the probability of human error. More importantly, B2B eCommerce systems allow manufacturers more flexibility in selling direct-to-customer or B2B2C without disrupting their existing channels.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Benefits of Digital Transformation in Manufacturing<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">As digital technologies evolve all around us, manufacturers are increasingly coming to crossroads: to transform and develop or stick with the tried, tested, and true methods. Digital transformation offers many benefits in the long term, including:<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Better data usage<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Digital transformation is about optimizing data usage in operations, and manufacturers can utilize data more effectively &#8211; feeding it to their B2B eCommerce, ERP, CRM, finance, warehousing systems, and more.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Improved processes<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Digital transformation has the opportunity to revolutionize operations. For example, real-time insights can help monitor, resolve and even predict situations in order to optimize machinery lifecycles. This helps maintain error-free operation and avoid disruptions.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Increased innovation\u00a0<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Innovation encourages innovation, so a digital transformation strategy sets the stage for a holistic approach to optimization. For example, utilizing smart factory capabilities in your ERP helps you improve your business performance, as well as the supply chain, too.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Smarter outsourcing<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">By introducing remote monitoring, troubleshooting, proactive maintenance coupled with data at their fingertips, manufacturers can not only prevent disruptions, they can also eliminate risks of rushed solutions.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Customer-centricity<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Manufacturers can get closer to customers by launching a B2B eCommerce platform with separate portals for regions, brands or clients. Moreover, manufacturers can make use of sales data that accurately predict customer demand and adjust their production accordingly.\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">How to Prepare for Digital Transformation in Manufacturing<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Just like manufacturing, information and technology is not going anywhere. Because suppliers and distributors are also <\/span><a href=\"https:\/\/www.technologyrecord.com\/Article\/thyssenkrupp-creates-azure-based-ai-bot-to-optimise-supply-chain-83544\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">being exposed<\/span><\/a><span style=\"font-weight: 400;\"> to Industry 4.0, IoT, and machine learning, they have grown to expect the same from manufacturers.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To keep up with expectations their partners and clients have out of their products and processes, manufacturers have no choice but to innovate. Manufacturing businesses looking to learn more about digital transformation can explore the <\/span><a href=\"https:\/\/oroinc.com\/b2b-ecommerce\/blog\/how-to-measure-digital-transformation-success\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">four-part blog series<\/span><\/a><span style=\"font-weight: 400;\"> we\u2019ve prepared on the subject.\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">How can Oro, Inc. help in your digital transformation?<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Today\u2019s businesses rely on complex and company-specific processes in order to attract customers, grow sales, and maintain all types of business relationships, such as quotations, contracts, and ordering functions. Thankfully, Oro, Inc. is perfectly positioned to help businesses harness the power of digital technology.<\/span><\/p>\n<p><span style=\"font-weight: 400;\"><a href=\"https:\/\/oroinc.com\/orocrm\/\" target=\"_blank\" rel=\"noopener noreferrer\">Oro\u2019s CRM<\/a>, being fully integrated with OroCommerce, offers businesses a unified view of B2C, B2B, sales, and customer data. This leads to greater resistance to market forces, increased agility, and the ability to seize new opportunities.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Furthermore, Oro\u2019s smooth synchronization with ERP, PIM and eProcurement systems gives you a single source of truth for business processes. With connected systems, businesses can better work towards a common goal and offer omni-channel experiences.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Lastly, Oro offers a time-tested platform with an ecosystem of developers, worldwide technology partners, and solution integrators. This means the right solution to the most difficult B2B eCommerce challenges is never out of reach, as Oro partners are focused on achieving client success and ensuring the best ROI from their technologies.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Conclusion<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">For the most part, digital transformation trends in manufacturing target customization and efficiency, agility and similar areas. However, any <\/span><a href=\"https:\/\/oroinc.com\/b2b-ecommerce\/blog\/successful-digital-business-transformation-part-2-forming-your-digital-transformation-strategy\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">digital transformation strategy<\/span><\/a><span style=\"font-weight: 400;\"> must never lose track of changing times. That\u2019s why manufacturers should always remember that while digital transformation is inevitable, it should not be seen as a solution to any single area of manufacturing. Instead, it should be looked at as an ongoing process of getting and staying at the top of your market.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The digital landscape is constantly changing for manufacturers. Change is propagated by rapidly changing consumer expectations, connected devices and technology improvements in neighboring industries in the supply chain.\u00a0We are already seeing the effects that digital transformation in manufacturing has on businesses, their suppliers, customers, and other third parties. This has numerous advantages, such as helping [&hellip;]<\/p>\n","protected":false},"author":38577,"featured_media":81956,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ep_exclude_from_search":false,"footnotes":""},"categories":[210],"tags":[],"class_list":{"0":"post-81944","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-b2b-ecommerce"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Digital Transformation in Manufacturing: All You Need to Know | OroCommerce<\/title>\n<meta name=\"description\" content=\"Learn how digital transformation in manufacturing helps manufacturers improve operational efficiencies, optimize different business areas, and grow sales.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, 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