Coleman Technologies Blog

The Manufacturer’s Puzzle

Making products can be a bit of a puzzle. You have to fit the right parts together to create the product. Each of those parts comes from somewhere. Some you need to create yourself, but most of the time there are companies that manufacturers acquire the resources from. The process is called procurement.

Procurement is the first of many puzzles that a manufacturer has to solve. Essentially, the products they create have a purpose. Many small and medium-sized manufacturers tend to make the products that make up larger products (that other manufacturers build). As a result, their revenue typically comes from supplying other manufacturers with pieces that will make up the products they are manufacturing. To streamline the procurement process, many companies have started relying on automated systems to tell them when they need to re-up.

Once the resources have been acquired, now it’s time to make the products. Of course, the costliest part of any manufacturing company is the actual manufacturing of the products. This is mainly because the capital costs of purchasing the machinery needed to manufacture goods, coupled with the operational costs of payroll and downtime caused by machinery malfunction (and the subsequent maintenance required), adds up to a significant investment. Companies today are searching for new ways around these costs. Enhancements in automation have made it possible for the smaller manufacturer to trim their production costs, while keeping their output static.

The last piece of the puzzle for the manufacturer is the distribution of the products to consumers. In many cases the consumers in this scenario are retail businesses. They need the costs to be low enough to be able to offer them to their customers with a markup.  Problems with distribution, like problems in the procurement stages, can be devastating to the manufacturer’s ability to create a positive revenue stream.

Where IT Fits

The entire process can be aided by information technology, but manufacturers tend to look at things in stages...like their workflow. Typically, organizations that have leveraged automation through the use of software systems, find that they are able to have more transparency and less overall inefficiency than organizations that don’t. Some software platforms that modern manufacturers are using include:

• Customer Relationship Management - This software helps a company streamline their customer service. It’s used to manage leads, opportunities, and customers.
• Supply Chain Management - This software helps a company control their entire supply chain from procurement to distribution.
• Inventory Management - Manages stock and standardizes and automates replenishment.
• Asset Tracking - Using sensors, every product and resource can be tracked to provide efficiency.

These solutions and more can be found in what is called an Enterprise Resource Planning software. While ERP software is comprehensive and offers organizations a lot of benefits, smaller manufacturers may not need the immersive control that many ERP systems provide. Finding the right software to meet your needs is important to ensure that your business can be as effective as it can be.

The IT professionals at Coleman Technologies can help you find the software you need to gain full control over all of your business’ processes. Call us today to learn more at (604) 513-9428.

Manufacturers have long been at the forefront of technology. Today, this trend continues, but with new, innovative tools that are designed to make business more efficient and workers more productive. This technology has helped much of the manufacturing sector despite costs continually rising, supply chain interruptions, and other variables. Let’s take a look at some of the major technology changes that have fueled manufacturers during the past few years. 

Enhanced Digitalization

Manufacturers typically take materials and turn them into consumer goods or components for other manufacturers to use in their process. Many manufacturers have begun the process of digitization; meaning that they now are using digital systems to manage their business, interact with customers, and handle all the automation that has been tabbed to make their process more efficient. Most manufacturers have been using digital technology for quite some time, but some of the shifts that make these changes innovative include the leveraging of robots to do collaborative tasks.

Cobots

Artificial intelligence fuels this trend by using machines that are colloquially called “cobots”. Over 40% of manufacturers use robots and with smarter software the “cobots” can work alongside human workers rather than outright replacing them. This means these robots are much more affordable than traditional robots that typically replace human workers.

IoT

Another digital evolution for manufacturers comes from the Internet of Things. These sensors may not be built specifically for manufacturers, but they hold considerable value for them. The biggest benefit comes in the manner of predictive maintenance. Sensors can keep track of components and maintenance schedules, which can cut down on maintenance costs by a whopping 25 percent. If you consider that downtime can cost tens of thousands of dollars an hour, the more you can do to keep systems functioning as intended the better your business will be. 

Machine Vision

Another use of AI in manufacturing is called machine vision. It lets companies automate their quality control processes on each end of their business. Basically, it allows a manufacturer to run their operations faster than they would if they relied on humans to run point over their quality control. With machine vision detection, manufacturers can increase production and maintain a level of quality they expect from their process, a win-win for any manufacturer. 

Technology can help any type of business, but if you’re a manufacturer that could benefit from innovative new digital tools, reach out to the IT experts at Coleman Technologies at (604) 513-9428 today.