The New World of Intelligent Manufacturing

With digital transformation, the world of manufacturing will never be the same again. Here’s why.

Digital transformation has permeated almost all business functions over the last decade. Optimizing stagnant systems with new-age technologies has become imperative for success. One aspect of business segment that was slow to embrace a digital transformation was manufacturing. However, things are beginning to change. Manufacturers across the globe are adopting Industry 4.0 technologies in reimagining their factory and warehouse management.

Even though automation and robotics have been a boon overall for the manufacturing industry, human capabilities are still needed to analyze and solve problems. However, with the baby boomer generation entering retirement, the industry is facing a skilled labor shortage. In addition to that, a strain of resources because of COVID-19, changing business priorities, and compliance issues in an increasingly globalized world are forcing a rethink in the manufacturing space. This has necessitated the adoption of a holistic approach to manufacturing that inculcates integrated planning and allows the organization to withstand disruptions.

This is where digital transformation comes into play. As machines become more intelligent, embracing digital technologies will allow the organization to leverage the full capabilities of their equipment by generating actionable insights from data, creating flexible supply chains, and enabling mass customization.

ERP systems are fast becoming a critical element of success for many companies. Such a system helps an organization plan and manage all core supply chain, manufacturing, services, financial and other processes. It can considerably streamline an organization’s operations. This is exactly where software such as S/4HANA by SAP comes into the picture. By utilizing technologies such as code pushdown and O-data Protocols, S/4HANA ensures faster, more stable, and highly scalable interconnectedness. It provides a new-age database that allows in-memory computing and columnar storage which allows for the embedment of analytics and AI/ML capabilities within the core transaction processing system. Organizations are thus able to become highly responsive to customer requirements with simplified processes and attractive UIs.

As digital technology rapidly transforms logistics, Intelligent Supply Chain is also gaining popularity. Deeply integrated with Industry 4.0, the manufacturing processes under such a system leverage the capabilities of the Internet of Things, Artificial Intelligence, and Advanced Analytics. According to McKinsey research, companies that aggressively digitize their supply chains can expect to boost annual growth of earnings by 3.2% which represents the largest increase from digitizing any business area.

Another area that businesses can look to optimize through integrated systems is warehousing. Companies have already started implementing sensors, RFID tags, device-to-device communication, Real Time Locationing System to assist in fleet and workforce management, and other forms of connectivity to manage daily tasks in warehouses. Such technologies can enable cheaper and faster delivery, improve asset management, and help generate better insights from a much richer data pool.

Due to its industry expertise and technology leadership in several fields, Bosch plays a key role in global supply and value chains. What makes the Bosch experience unique? Our award-winning practitioners’ approach to in creating integrated systems using technologies such as IoT, IT-OT, AIoT enables us to implement processes and solutions from the customer’s perspective. We anticipate and resolve many of the pain points that manufacturers face through digitization and automation for greater transparency, efficiency and growth. By translating this expertise into digital form, Bosch aims to create factories of the future through ‘connected, smart, flexible’ manufacturing.