The buzzwords are everywhere: IoT, Big Data, Advanced Analytics, Industry 4.0—what’s real and what’s just a fad?
Many factors are driving the Digital push for manufacturing:
- Economic – a slow growth environment with low margins
- Risk and Regulatory – new administration, uncertainty if regulations will be reduced or eliminated
- Workforce Skills – significant gap in advanced skills required to operate a modern plant (i.e.robotics)
- Culture – many manufacturers are used to the “old way of doing things” vs looking at the gaps in their organizational structure, processes, data, and technology.
So, are there opportunities that can be found and significant benefits realized?
MCG thinks there are.
So, where are the biggest gaps in the industry today? Research tell us that:
- Demand for expedited financial information delivery and the need to manage the growing volume of transactions listed as top 2 pressures facing accounting & financial organizations in manufacturing.
- Less than 50% of purchase orders are transmitted electronically, so paper is still king.
- Approximately 70% of operational information is required within one day but access to that information is available less than 60% of the time, creating major delays across the supply chain.
Where are the benefits? In a nutshell, tremendous cost savings. Here are some examples:
- A European grocer identified a £14 per order cost saving gained when using EDI compared to manual processes, resulting in an annual savings of over £330 million
- A major electronics manufacturer calculates the cost of processing an order manually at $38.00, compared to just $1.35 for an order processed using EDI
- Gartner estimated the potential reduction in invoicing costs between 70% and 90% per invoice.
We ask our manufacturing clients to be patient, think strategically and avoid boiling the ocean. MCG helps clients craft a specific use case that focuses on a well-defined problem and very specific data that will solve the issue.
The benefits are significant and tangible to the financial bottom line.
So how can MCG help you and your team assess these types of opportunities and realize the benefits? Start with our Supply Chain Check-up to help you identify potential for improvement across all facets of your supply chain.
Let MCG help you identify where there are opportunities, prioritize which ones to address and realize tangible benefits quickly. Engage with us!
Contact Moss Davis, Managing Director of MCG, today at: email@example.com