{"id":9993,"date":"2021-10-25T18:44:07","date_gmt":"2021-10-25T16:44:07","guid":{"rendered":"https:\/\/ca.syspro.com\/blog\/?p=9993"},"modified":"2021-11-04T15:49:05","modified_gmt":"2021-11-04T13:49:05","slug":"the-smart-factory-part-2-how-manufacturers-and-distributors-can-evolve-towards-the-smart-factory","status":"publish","type":"post","link":"https:\/\/ca.syspro.com\/blog\/erp-and-technology\/the-smart-factory-part-2-how-manufacturers-and-distributors-can-evolve-towards-the-smart-factory\/","title":{"rendered":"The smart factory Part 2: How manufacturers and distributors can evolve towards the smart factory"},"content":{"rendered":"

Several years ago, only the bravest and most ambitious enterprises embarked on the digital transformation journey, today the industry landscape has changed. Now digitalization of manufacturing and distribution supply chain processes<\/a> has become imperative, especially after the pandemic, which caused disruptions and revealed multiple gaps and weaknesses in the global supply chain.<\/p>\n

To compete in this constantly changing market, manufacturers and distributors need more digital-driven services such as real-time production, tracking, and analysis. This means making factories smarter for the future. In the Fictiv 2021 State of Manufacturing Report<\/a> 95% of industry leaders acknowledged that digital transformation<\/a> is necessary for their company\u2019s development and success. However, many manufacturers and distributors don\u2019t know where to start and how to structure their approach to embark on the journey to digital transformation.<\/p>\n

Here\u2019s a look into the smart factory and the steps to start the path to one taking advantage of the benefits technology can offer.<\/p>\n

What is the smart factory? <\/strong><\/h2>\n

The smart factory is an interconnected network of machines, communication mechanisms, computing platforms that uses advanced technologies such as artificial intelligence (AI) and machine learning<\/a> to analyze data, drive automated processes and learn as it goes. The smart factory can help manufacturers and distributors improve performance efficiency and effectiveness in a dynamic, digital world. As digital initiatives like machine learning, connected services, IoT, AI, big data, bots, cloud connectivity, mobility, and socialization ramp up within your organization, there are almost infinite possibilities to scale, modify, and adapt as\u00a0needed.<\/p>\n

How to create a smart factory<\/strong><\/h2>\n

It\u2019s important to first to set objectives. Where does your factory need to make improvements? Where do you need to start?\u00a0 What are the current operational pain points? What does the future look like? Some of these questions will assist with what areas or technology you would need to start with to drive value for your unique organization.<\/p>\n

For manufacturers and distributors, there are three key transitional steps towards the smart factory:<\/p>\n

1. The first step is digitization. Digitization means converting something into a digital format, and usually refers to encoding data and documents. Only necessary information which will be utilized needs to be digitized.<\/p>\n

2. The next thing manufacturers and distributors would need to implement is digitalization. Digitalization means the use of digital technologies to change business processes to provide new value producing opportunities or cost efficiencies. In this phase we begin to see the digital transformation to improve factory operations and efficiency. This could include:<\/p>\n