Tag Archives: Internet of Things

When cargo theft occurs, the entire supply chain suffers. Manufacturers must be aware of these recent trends occurring and act accordingly to protect their assets. With smart planning, businesses can adequately thwart thieves and safeguard their employees. Here are considerations for manufacturers to move in the right direction.

1. Understanding the Most Significant Risks

First, companies should understand the specific threats to which they are most vulnerable. The most immediate danger could be trucks in unsecured areas where thieves can quickly access them. In other instances, manufacturers may see organized crime targeting highly valued goods. Regardless, business owners need to acknowledge their weaknesses.

Researchers have investigated risk influential factors (RIFs) to determine the most damaging aspects. A 2022 study published in Reliability Engineering and System Safety developed a data-driven Bayesian network model to predict and diagnose cargo theft. The experts said product category, year, region, location type and modus operandi are the most significant RIFs. Therefore, manufacturers should be aware of these guidelines.

2. Leveraging Advanced Algorithms

Improving cargo security has become more challenging due to increased attack surfaces and opportunities for outside threats. In response, manufacturers must leverage advanced technologies like artificial intelligence (AI) and machine learning (ML) to protect their assets. Algorithms are excellent tools for business owners because they reduce the theft risk when transporting goods on the road.

A 2024 study published in Computers and Industrial Engineering used a physical internet-based analytic model to combat rising cargo theft. The researchers used real-world scenarios in their experiments to understand the benefits and drawbacks. Their model determined the risk of different product types based on their specific routes, allowing them to better understand the threshold where shipments become vulnerable to criminal organizations.

3. Using the Internet of Things (IoT)

IoT devices are critical for management operating systems (MOS) because they enhance software and hardware capabilities. With these gadgets, manufacturers can improve productivity and financial performance. IoT research is also critical for securing cargo through each step of transit. For instance, GPS technology provides real-time knowledge of each shipment.

Manufacturers should take advantage of IoT because it can be present with the device and around the facility. Smart cameras are an excellent example because business owners can remotely monitor the feeds and promptly take action. Advanced technology also lets manufacturers take extra steps to protect their cargo. Smart locks with biometric recognition are a vital safeguard against thieves.

4. Improving Cybersecurity Practices

Cargo theft increased by 46% in the first quarter of 2024 compared to the same time in 2023. CargoNet reported 925 incidents in the quarter, emphasizing the need for heightened security tactics. While physical barriers are necessary, manufacturers should also improve their cybersecurity practices. Internet crime is equally damaging to companies and could be more challenging to predict.

Ransomware attacks are among the most pivotal for manufacturers, considering their frequency. A 2022 IBM report found that 23% of these incidents affected manufacturing, making it the most targeted industry. Preventing ransomware attacks entails basic to advanced cybersecurity tactics, such as multifactor authentication, anti-malware software and software updates.

5. Selective Supplier Partnerships

Some manufacturers outsource specific tasks to reduce overhead and strengthen their bottom line. In addition to these partners, companies must watch other links in the supply chain. Businesses should monitor supplier relationships to ensure security — otherwise, they risk lost revenue and downtime while fixing errors.

Supplier relationships start with background checks and regular audits. Manufacturers must ensure these partners do their best to detect and address vulnerabilities. Business owners should find companies with pertinent industry certifications like C-TPAT if applicable. Monitoring should continue throughout the relationship with consistent communication and key performance indicators (KPIs).

6. Properly Training Employees

While suppliers can be security liabilities, it’s equally essential for manufacturers to monitor their employees. Workers may willingly or unknowingly contribute to cargo theft through their actions, so businesses should protect them from themselves. First, company leadership should train employees on best security practices, such as reporting procedures and proper loading.

Then, the company should focus on internal theft from its workers. Experts say over 75% of employees have stolen from their employer at least once. Therefore, robust internal measures should be in place to prevent theft. Mitigating employee stealing includes restricting access control and using biometric scanners. Business owners could also encourage workers to be vigilant of suspicious activity.

7. Controlling Supply Chain Aspects

Ultimately, it’s up to manufacturers and business owners to control as many supply chain aspects as possible. Internal audits are a valuable tool because they reveal gaps in shipments and where theft has potentially occurred. Once a company understands its insufficiency, leadership teams can act accordingly. Businesses should audit their inventory, security and other critical business features.

Supply chain professionals should also regain control in areas they may consider less secure, such as transit. Highways and oceans provide plenty of unknowns, so businesses must protect their cargo before, during and after the route. Besides GPS devices, forward-thinking companies wield electronic seals, telematics devices, light sensors and other tech.

Tackling Theft and Protecting Assets

The rise in cargo theft should alarm manufacturing professionals and business owners. Outside threats have become more sophisticated through physical and cybersecurity risks. While crimes have increased, manufacturers should proactively combat thieves. Leadership teams should scrutinize suppliers, employees and other aspects of the supply chain to ensure safety.

*This article is written by Jack Shaw. Jack is a seasoned automotive industry writer with over six years of experience. As the senior writer for Modded, he combines his passion for vehicles, manufacturing and technology with his expertise to deliver engaging content that resonates with enthusiasts worldwide.

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As technology continues to improve, large companies and supply chain manufacturers have more opportunities to expand their businesses and reach more customers with their products. With this power comes responsibility, calling for transparency in supply chains.

Reliable tracking systems must be implemented to enhance supply chain transparency and ensure businesses and customers get the accurate information they need. Real-time visibility platforms (RTVP), new technology and optimized data collection can create more visible supply chains.

What Is a Real-Time Visibility Platform?

Real-time visibility allows for the tracking and monitoring of products and goods, from pickup to delivery. With real-time data, all steps involved in the supply chain process are receivable, making it much easier for large companies to provide honest product and transportation details.

Real-time visibility platforms are the software tools and technologies that make this data possible. RTVP gathers data based on live updates on product location and status.

What Technologies Play a Part in Real-Time Visibility?

Like many things today, real-time visibility would not be possible without technology. As systems continue to grow, so does the potential for full transparency.

Many technologies work together to make real-time visibility possible. The following are some of the tools used to streamline processes and maximize supply chain transparency:

1. GPS

GPS technology has become an integral part of the real-time visibility process and enables RTVP to track objects for accurate data. GPS technology uses satellite signals and signal reception to capture the location of items, roads and buildings, and it sends this data back to our devices.

GPS technology does wonders for the transportation industry. By accurately tracking trucks and other transportation vehicles, we can watch products travel from point A to point B and make decisions based on their location.

2. AI

Artificial intelligence has entered many realms of society, including the supply chain. Fortunately, AI makes RTVP possible for various transparency purposes.

AI considers all factors and works alongside humans to enhance decision-making and efficiency, leading to a faster, safer and more honest supply chain. AI also powers advanced analytics to help humans and businesses analyze real-time data, making it applicable to all industries.

3. Internet of Things (IoT)

IoT creates a robust network that allows data to flow freely and improves connection and communication between different devices. Through this created network, IoT can narrow down specific items and points of data to share information and even make decisions.

From quantity to fulfillment, IoT processes data through algorithms that contribute to accurate, real-time visibility.

4. Blockchain

Blockchain acts as a safety tool for RTVP, “blocking” hackers and other forms of data manipulation. There are four main types of blockchain: public, private, hybrid and consortium. Each form creates a securely shared network of data that allows parties to communicate.

Blockchain allows equal access for all parties, and there is no single network owner. This provides for ethical, open movement throughout the supply chain and adds transparency to traditional supply chains.

Why Implement a Real-Time Visibility Platform?

Real-time visibility platforms provide endless benefits to supply chain industries. RTVP acts as a high-functioning network of technology and intelligence to help businesses identify areas for improvement and solve problems in all areas — from ethical to logistical.

With RTVP, there is no shortage of possibilities. The following are four benefits of implementing a real-time visibility platform:

1. Ensure Customer Satisfaction

Without RTVP’s technology, product location and safety are unknown to businesses and customers. When companies implement a real-time visibility platform, “the unknown” is eliminated. With access to knowledge such as when and where their goods will arrive, customers know exactly what to expect.

RTVP shares information with customers they previously did not have access to, such as ETAs and tracking details. The more customers know, the happier they will be!

2. Speed up Reaction Time

RTVP gives companies the power to detect precisely when and where disruptions occur, from departure to arrival. If an issue arises along the way, businesses know in real time, allowing them to immediately develop a direct course of action.

Companies can mitigate risks with transparent access to data, which reduces wasted time spent planning strategies and reacting to issues. RTVP allows for the tracking of delays, traffic, congestion, weather and anything else that could pose a potential threat.

3. Reduce Costs

Implementing a real-time visibility platform provides many financial benefits. Companies have access to trucks and products, allowing them to see available capacity and, in turn, utilize all available space. This creates sustainable, efficient transportation and also cuts costs.

Many industries are now dealing with labor shortages, rising material costs and an ever-changing risk landscape. With RTVP, industries can detect traffic, weather conditions and other risks to product transportation, reducing the risk of unnecessary financial burdens. With saved time and money, industries can focus on solving more significant issues.

4. Improve Relationships

RTVP uses technology to improve relationships between all parties involved. With transparency and proper information sharing, people can access honest details, avoiding the risk of being blindsided or misinformed.

Transparency positively impacts shippers, managers, workers, clients and customers, resulting in better collaboration and more satisfied people. RTVP also enhances communication, allows for honest lane sharing and improves handoffs and business interactions.

Use RTVP for Supply Chain Transparency

RTVP allows supply chain leaders and manufacturers to stay ahead of their industry and interact with advanced modern technology. Businesses can work hand in hand with real-time data to make their processes more efficient and keep customers satisfied. With RTVP,  transparency is possible.

***This article is written by Jack Shaw. Jack is a seasoned automotive industry writer with over six years of experience. As the senior writer for Modded, he combines his passion for vehicles, manufacturing and technology with his expertise to deliver engaging content that resonates with enthusiasts worldwide.

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By integrating their Management Operating Systems (MOS) with AI and IoT, mining and metals companies can significantly enhance their operational capabilities, leading to better asset management, increased productivity, and ultimately, improved financial performance.

Utilizing IoT devices, such as sensors and connected equipment, to continuously collect data on various aspects of their operations, including equipment performance, environmental conditions, and production metrics, this real-time data is fed into the MOS, providing a comprehensive and up-to-date view of operations. The collected data is then analyzed by AI algorithms within the MOS to generate insights, identify patterns, and predict outcomes, allowing for proactive management of assets and operations, such as predicting equipment failures or optimizing production schedules.

A key aspect of any MOS is to assist management in decision making. Integrating AI with MOS enables real-time decision support, where AI provides recommendations or automates decision-making processes based on the analysis of IoT data. This helps managers make more informed decisions quickly, improving responsiveness to changing conditions. Additionally, AI allows the MOS to simulate different operational scenarios and predict their outcomes. This capability helps managers evaluate the potential impact of different decisions before implementing them, reducing risks and optimizing outcomes.

By focusing on operational efficiency, AI models integrated into the MOS can optimize processes in real-time by adjusting operational parameters based on current conditions and historical data, leading to improvements in ore and metal recovery, energy efficiency, and overall productivity. AI can also be used to analyze data on resource usage and availability, helping the MOS to optimize the allocation of resources such as labor, equipment, and materials, leading to cost savings and improved operational efficiency.

When approaching enterprise asset management and predictive maintenance models, integrating AI and IoT with the MOS, companies can enhance their predictive maintenance capabilities. AI algorithms analyze sensor data from IoT devices to predict when maintenance is needed, helping to prevent unexpected equipment failures and reduce downtime. This assists the MOS to automatically schedule maintenance activities based on AI predictions, ensuring that maintenance is performed only when necessary and that it is coordinated with other operational activities.

The use IoT and AI integration helps the MOS to optimize inventory levels by predicting demand for spare parts and materials based on operational data, thus reducing inventory costs and ensuring that critical components are available when needed. By having AI analyze data across the supply chain, assisting the MOS to optimize logistics, reduce lead times, and minimize costs associated with the procurement and transportation of materials.

Integrating Management Operating Systems with AI and IoT in the mining and metals industry offers substantial benefits, but it also comes with several challenges and potential pitfalls.

USC partners with your organization and coaches your people to significantly impact performance outcomes and accelerate Operational Excellence

For more than 55 years, USC has been working with clients to address the challenges and avoid the pitfalls when developing, enhancing and deploying their management operating systems.

As technology enablers, like AI and IoT, are deployed, we help clients to address the challenges through careful planning and a strong focus on change management, including employee involvement.  By proactively identifying and mitigating the pitfalls, mining and metal companies can successfully integrate AI and IoT with their MOS, unlocking the full potential of these technologies for improved asset management and operational efficiency.

Integrating AI and IoT into MOS often requires close coordination across different departments, such as IT, operations, and maintenance. Misalignment or lack of communication between these departments can lead to project delays and failures. The complexity of integrating AI and IoT, projects can often experience timeline and budget overruns. Effective project management is critical to keep the implementation on track and within budget.

Mining and metal operations often have data scattered across different systems and departments. Integrating this data into a unified MOS that can effectively leverage AI and IoT is challenging, particularly if the data is stored in incompatible formats or is not standardized. AI systems require high-quality, accurate data to function effectively. Inconsistent, incomplete, or inaccurate data can lead to poor AI performance, resulting in unreliable predictions or insights. Ensuring that data from IoT devices is processed in real-time is crucial for effective AI-driven decision-making. However, high latency in data transmission or processing can lead to delays, reducing the effectiveness of AI in making timely decisions.

Many companies often face a skills gap when it comes to AI, IoT, and data analytics. There may be a shortage of in-house expertise required to manage and maintain these advanced technologies effectively, so having a partner can assist in compressing the time it normally takes cleanse data and align MOS processes. Employees accustomed to traditional methods may resist adopting new technologies, especially if they perceive AI and IoT as threatening their jobs or making their roles redundant. Effective change management and training programs are essential to address this issue.

Companies that have integrated their Management Operating Systems with AI and IoT are experiencing several quantifiable benefits across various aspects of their operations. These benefits are often measurable in terms of improved safety (30-50% reduction in safety incidents), cost savings (10-40% reduction in maintenance costs), and an increased productivity (5-15% increase in productivity and 10-20% improvement in operating efficiency), just to name a few. By leveraging these technologies effectively, mining and metal companies can achieve substantial improvements across their entire value chain.

USC helps you tackle key challenges

• Ensure the right resources are at the right place to minimize lost time – enabling safe and disciplined execution
• Optimize mine planning and scheduling across all planning horizons – delivering detailed and accurate plans
• Identify potential roadblocks proactively during mine planning and solve complexity during the planning process
• Control quality of work at the point of execution by identifying off specification and enabling in-shift correction
• Enhance your ability to cluster & centralize scarce human expertise, allowing all sites to benefit from their expertise

Do you want to understand how a MOS can integrate your mine and operational planning, while helping you to safely increase performance site wide? Contact us today.

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Warehouse operations are critical to any manufacturing business. From holding inventory to delivering items, the process must be as swift and efficient as possible. Earlier practices such as document management and communication have been a significant step, but growth and progression in the supply chain call for more.

The rise of the Internet has been a key event in improving warehouse operations. As technology progresses, there are even more ways to optimize the supply chain, and ensure every item or employee is included.

The Need to Streamline Warehouse Operations

Warehouse operations offer many opportunities for error while meeting tight deadlines. Brand owners must recognize these areas for improvement and see what can be done to reduce mistakes. Streamlining translates to more accurate and faster processing, which equates to higher customer satisfaction.

Warehouse operational efficiency also translates to long-term time and cost savings. Next-gen technology can streamline warehouse operations using fewer minutes and dollars resulting in increased productivity.

Remember to include workers when integrating these new electronics. Forty-two percent of workers fear job loss from automation and new technologies. However, the reality is humans are responsible for tool management and strategy execution. Train them to work with these items rather than against them.

Vital Next-Gen Technologies in the Warehouse

Some facilities may incorporate multiple next-gen technologies, while others only incorporate one. The most important factor is to assess what works best for a specific set of operations and makes sense investment-wise.

Automation and Robotics

Certain warehouse operations are rather repetitive. It can be the same cycle of picking out a product, packing it, adding a shipping label and sending it off. Automating these processes with robots can take care of these mundane tasks, shifting focus to more pressing concerns in the facility.

Smaller establishments can still find ways to introduce automation. For example, installations like conveyor belts move items along the facility. Automated labeling machines can transfer the necessary information.

Certain equipment can also improve staff safety. For example, about 70 worker fatalities occurred in forklift-related accidents across different sectors. Self-operating forklifts simplify warehouse transportation and prevent hazardous contact.

Blockchain Technologies

Blockchain technology is a key database streamlining data storage and information sharing. Warehouse management entails plenty of information about product quantity and delivery. Many parties — like suppliers, manufacturers and distributors — are involved.

The blockchain ensures information is accessible and interconnected. What’s ideal about this next-gen ledger tech is it keeps data under wraps. Each block is secure in nature because it requires verification and permission.

Thus, blockchain technology is ideal for various financial transactions. If a distributor pays a manufacturer for production, they should process the transaction through this network. It has a suitable layer of encryption while executing those actions.

Internet of Things

The Internet of Things (IoT) is a flexible alternative to blockchain technology. By employing this network, a warehouse can generate connections between products and machines through sensors and software. If one product is removed, the system will detect it and send an update.

The IoT enables warehouses to receive real-time data about the movement of their shipments. This cuts down the slower steps in inventory management and prompts communication between devices so all parties in the supply chain can stay up to date.

It is possible to fuse both next-gen technologies in warehouse operations. The blockchain establishes trust, while the IoT improves connectivity, refining the process of sharing information among multiple parties.

Artificial Intelligence

Multiple industries are utilizing artificial intelligence (AI) in business processes. While most people find its use helpful in customer service, 40% of business owners use AI for inventory management and 30% for supply chain operations. Warehouses can use their programs to collect and organize data in the long run.

AI can also generate different presentations and reports based on the data it receives. Manufacturers with multiple facilities can upload their information and send a prompt to receive specific information about their inner workings.

AI can also provide business recommendations on streamlining operations with predictive analytics. However, these programs’ output depends on the data set given, and there are limits to the predictions they can make depending on the amount of variation.

The next best thing to do with this output is to conduct a comprehensive data analysis. Use the information to set metrics for evaluation in the future. If one area is faltering, make actionable decisions to influence processing in the facility.

Cybersecurity

As effective as next-gen technologies in warehousing are, new problems arise. The Identity Theft Resource Center found supply chain attacks impacted more than 10 million people in 2022. Each facility and its streamlined performance are vulnerable to these cyber threats.

Focus on preventive measures to maintain the order of operations. Investing in a firewall adds a layer of protection to warehouse information. Add intrusion detection systems to alert business owners of any breaches.

Physical security installments can also protect warehouses. For example, surveillance cameras log who accesses company computers during and outside active hours. Biometric technology is also a good touch for tracking and access control.

Optimize Warehouse Operations with Digitalization

Speed and effectiveness are crucial in warehouses. Next-gen technologies have made great strides in equipping facilities with these attributes, so take advantage of them to strengthen operations.

*This article is written by Jack Shaw. Jack is a seasoned automotive industry writer with over six years of experience. As the senior writer for Modded, he combines his passion for vehicles, manufacturing and technology with his expertise to deliver engaging content that resonates with enthusiasts worldwide.

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Businesses across the nation are adjusting to slimmer profit margins. The Financial Times reports that price spikes, labor shortages, and supply chain struggles are continuing to eat into profits while consumers are spending less in response to inflation.

As a business leader, you can discover new levels of profitability and boost your bottom line by maximizing efficiency in the workplace.

This is particularly important today, as modern workers report that they are only productive for 2 hours 53 minutes per day. As a leader, reclaiming this lost productivity should be your top priority while keeping staff healthy and happy.

Cost Savings

Rising costs will undermine your profits if you fail to adjust. This is true regardless of what stage of business growth you are in today. Even well-established brands can suddenly go bust if they ignore rising costs and become overleveraged with debt.

Continuously re-evaluating your operations will help you discover costly bottlenecks and address fundamental issues. Adopting a process improvement mindset can help you respond to industry changes and remain relevant for consumers. Further cost-saving benefits of process improvement include:

• Improved time allocation for lower labor costs;
• Streamlined production to reduce variable costs;
• More responsible scaling for responsible growth.

Embracing process improvement can improve your firm’s ability to meet compliance requirements. This is helpful if you plan on growing your business and want to avoid fees and fines due to ineffective compliance protocols.

Employee Wellbeing

Your employees are the backbone of your business. Without them, efficiency would grind to a halt. However, many business leaders overlook employee wellbeing when profitability starts to decline.

If you want to enhance your operational efficiency, then keeping your employees healthy and happy should be a priority. Unhealthy, unhappy staff are extremely expensive, as you will be forced to pay for sick leave and will have to bring on new hires when they leave for greener pastures.

Stress can have a profound impact on employee well-being and health, too. Left untreated, chronic stress can increase the risk of musculoskeletal disorders, hypertension, heart attack, and stroke. Employees who are stressed are also more likely to suffer from oral ailments like gum disease, tooth decay, and cankers. This will sideline your employees and leave you short-staffed when you need employees the most.

Increasing Safety

Nothing will derail your business like an accident at work. In 2021 alone, workplace accidents and injuries cost a total of $167 billion. Injuries and accidents also resulted in 103,000,000 lost days of work, as many employees have to take extended time away after a mishap.

As a business owner, you should explore efficiency upgrades that improve safety. Even simple changes, like reducing workers’ workload, can significantly reduce the risk of accidents. Folks are far less likely to make a misstep when they are not overworked, burnt out, and fatigued by their workload.

You can improve worker safety and increase business efficiency by embracing the Internet of Things (IoT). IoT tech, like electronic logging devices, can improve safety and efficiency by tracking metrics related to employee safety. This is particularly important if you work in high-risk fields like delivery driving. Keep a tab on key data points like speed and braking. This reduces the risk of accidents and helps you retrain certain staff.

Customer Service

In today’s competitive business environment, you need to stand out from the crowd by providing excellent customer service. Effective, efficient customer service can improve brand loyalty, minimize damaging reviews, and convince consumers to make repeat purchases.

A recent survey of 3,200 consumers by Super Office found that 12% of all consumers expect a response time of under 15 minutes, while 46% say they want to hear back within 4 hours. This suggests that efficient, fast responses are key to heightened customer satisfaction.

If you cannot afford to employ a fleet of customer service agents, consider investing in automation software instead. Automated chatbots are capable of answering FAQs quickly and accurately. They can also send pre-generated responses to folks who get in contact during out-of-office hours. This can reassure customers that their query has been seen and that they will get a response soon.

Foregrounding efficiency in your customer service department can reduce the amount you spend on returns, too. US retailers predict that $761 billion of items will be returned every year. This can eat into profits and derail your day-to-day operations. You cannot avoid all returns, but you can mitigate many hasty returns with responsive, positive customer service.

Automation

Automating your business is not just good for customer service. Embracing the future of AI and automation can improve your efficiency and bolster your bottom line. Strategic changes, like automating your customer relationship management (CRM) software, can reduce the amount of time staff spend on menial responsibilities and free up time for creative, profit-boosting tasks.

If you are new to the idea of automation, start with low-hanging fruit like:

• File backups: Manually backing up important documents takes hours. Streamline the process by using cloud-based backups.
• Payroll: Your HR team does not want to spend all their time working through payroll. Automate much of the process so real employees can focus on fixing errors and addressing employee queries.
• Sales Funnel: Sales automation can improve the efficiency of your funnel by reaching out to new leads and collating data from across all of your platforms.

As your firm grows, you can explore more complex automation strategies. For example, if you currently run an e-commerce business, you can use automated software to keep stock of your inventory and automatically order new materials when supplies run low. This reduces lead time at your firm and ensures that you are always ready to take on new orders.

Communication

Effective communication keeps internal and external stakeholders happy and can maximize your operational efficiency. This is crucial when trying to boost your profits, as you’ll need buy-in from investors and employees alike.

As a business leader, you can guide your firm to higher levels of profitability and productivity by improving your own communication skills. Ask plenty of questions when conversing with other employees and focus on listening to them without interruption. If you struggle to listen without jumping in, consider taking notes to channel your thoughts and show your staff that you care about their insights.

You should review your communication strategy on an annual basis. This will ensure that your firm is up-to-date with the latest communication tech and can help you identify potential issues in your current strategy. A well-planned communication strategy improves collaboration in your company, too. This reduces the risk of costly oversights and helps you get more out of your most talented employees.

Conclusion

Boosting your bottom line is about more than cutting costs and raising your prices. Spark a period of profitable growth at your firm by embracing an ethos of process improvement. Continuous process improvement also helps you take advantage of breakthroughs in business tech like CRM automation, IoT tracking, and customer service chatbots. In sum, process improvement isn’t just ensuring short-term solutions, it’s ensuring the long-term success of your company.

*This article is written by Ainsley Lawrence. View more of Ainsley’s articles here.

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Manufacturers have had an uneasy past two years. Disruptions early in the pandemic nearly brought production to a halt in some areas, and now, supply chain shortages plague the industry.

Building materials have seen some of the most dramatic shortages, with 94% of surveyed builders struggling to find framing lumber. Electronics manufacturers and those relying on them have struggled, too. The automotive industry stands to lose $61 billion this year due to semiconductor shortages.

Other materials and parts in short supply include palm oil, plastics, corn, steel, and chlorine.

The Causes Behind Manufacturing Supply Shortages

There are many factors behind these shortages, most of them sprouting from the pandemic. Economic downturns and worksite restrictions have stopped or slowed many processes like farming, mining, and parts production globally. Even as these obstacles fade, these producers of materials and parts find themselves with considerable backlogs, leading to ongoing shortages.

A surge in demand has compounded these supply issues. General manufacturing demand was already increasing, with U.K. consumers alone spending more than $1.6 billion online weekly in 2019. E-commerce skyrocketed further amid the pandemic, and on the commercial side, many manufacturers rushed to meet previous production levels, outpacing their still-struggling suppliers.

International travel restrictions have also made shipping slower and more expensive, exacerbating the crisis.

Strategies for Mitigating Supply Issues

While there is no silver bullet for these supply shortages in manufacturing, several steps can mitigate their impact. Manufacturers can also take this opportunity to prepare against future disruptions, avoiding similar situations. Here are three leading strategies for navigating these supply issues.

1. Improving Visibility

One of the most crucial changes to make is to increase visibility across the supply chain. Internet of things (IoT) technology and data analytics programs can give manufacturers more insight into stock levels and developing situations. They can then predict shortages and take steps early to account for them.

Real-time visibility can also help track shipments to give customers a better idea of when they can expect their end products. Over time, this data can inform more accurate predictions and reveal needed workflow changes. Manufacturers can then become more resilient against supply chain issues.

2. Diversifying Sources

In manufacturing, many facilities tend to source from a single supplier. While this minimizes costs, it also intensifies shortages when disruptions arise. Manufacturers can lessen the impact of slowdowns and other unexpected issues by diversifying their sources.

Much like how Amazon uses artificial intelligence (AI) to keep merchandise close to consumers, manufacturers can analyze data to find ideal nearby sources. Domestic or near-short suppliers will produce fewer disruptions in a crisis as there’s less distance and fewer regulations involved. Using multiple suppliers will further reduce shortages by removing dependencies.

3. Turning to Alternatives

Some manufacturers have found relative success in using alternative materials to account for shortages. For example, some construction material companies have switched to unconventional insulation materials in the face of petroleum shortages. Manufacturers may be able to adjust processes to use novel or less-common materials to maintain production.

If facilities take this route, being transparent with customers is crucial. End products may have different qualities or incur higher prices with new materials, so manufacturers must be upfront about these changes. They may cause initial disruptions but can mitigate persistent issues with conventional parts.

Manufacturing Must Adapt Amid Widespread Shortages

Given the prevalence and severity of these shortages, they won’t likely go away soon. It will take time for production to fulfill backlogs and meet demand. On the positive side, this increased demand indicates healthy industry growth, but manufacturers must prevent similar crises in the future.

Since these shortages are multifaceted issues, no one solution will fix them. Adopting a multi-step approach, including implementing new technologies for visibility and adjusting sourcing methods, is essential. The industry faces significant obstacles right now, but these will inspire positive change for the future.

*This article is written by Devin Partida. Devin is a tech writer with an interest in IIoT and manufacturing. She is also the Editor-in-Chief of ReHack.com.

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If you find yourself attached to your legacy software and hardware in your manufacturing operation, you’re not alone. Old habits die hard, as they say, but the technological revolution sweeping industries right now necessitates changes and updates. It might be time to update your legacy systems; but how do you know if it’s really the right time to invest?

Digital systems and advancements in tech from artificial intelligence to the Internet of Things (IoT) are powering new possibilities in business. In manufacturing, IoT alone offers powerful solutions through data gathering, supply chain innovation, product and performance assessments, and much more. These connected devices drive insights that would be impossible otherwise, making their integration a valuable investment for most manufacturers.

With benefits like this stemming from new tech, it’s likely time to leave your legacy system behind and adopt new tools. Recognize the value of an update, then explore these tips for updating your legacy system.

Recognizing when it’s time to update

Facing economic problems in the aftermath of the COVID-19 pandemic, technology has come to play a more vital role in all our lives than ever before. From supply chains to individual office workers, the need for adaptive, connected systems is pressing to meet the needs of our global economy and correct problems where they occur. If your tech isn’t serving you at any point in your process, it’s time to update.

Begin with a process map. This is an illustration of your systems that highlights objectives, histories, successes, and failings. With a map laid out of your tech and tools, you can assess a visual model of your process to more easily explore how to make beneficial improvements.

From there, you can ask a series of questions regarding your legacy systems:

• Does our process generate useful data?
• What process information are we failing to gather?
• Is there still sufficient support for our legacy system?
• Where are we experiencing stalled growth or spending money to maintain our system?
• What are our options in the world of digital advancements?

By answering these questions, you’ll map out the flaws of your legacy system and begin to understand how modern tech can improve your productivity and workflows. From supply chain and production transparency to factory floor safety, tools like IoT and AI can revolutionize your process. Once you understand the need for an update, then it’s time to take the necessary steps to implement one.

How to update a legacy system

How you go about updating your legacy system depends on the nature and goals of your particular business model. In manufacturing, this often means ramping up production while eliminating downtime and inventory management issues.

Fortunately, modernizing your system doesn’t have to be difficult. You can achieve a clear plan for advancement in three simple steps. These are: assessing your current system, considering digital solutions, and creating a strategy.

Developing and integrating this plan, however, is typically more challenging. After all, you’ll face the issues of adapting your legacy system to new tools while training your team to make full use of a data-powered, streamlined process. These tips can help you take your plan to update your legacy system from a recognized need to a streamlined, revenue-boosting process.

1.    Define the data you need to gather.

When it comes to data, the more the better. That said, there are some vital metrics you’ll want to track to understand how you can improve your process. Look for software and tools that can help you monitor metrics like job cost, labor hours, materials costs, machine downtime and efficiency, and rate of error.

2.    Explore scalable, secure solutions.

With an understanding of the data you need to track, explore tools that can help you get there. Machine tools, connected systems, and sensors can all offer invaluable insights into the performance and function of your process. The world of industrial IoT gets better all the time, with 5G wireless connectivity allowing for more and better communication of data in real-time. Scalable data collection is one element of your digital transformation journey you should not neglect, so find tools that allow for growth.

3.    Keep it simple.

Updating your legacy system can lead to problems if it mires your workflow in too much complexity. Fortunately, modern software solutions allow manufacturers to streamline their insights into a single, comprehensive dashboard. With the ability to track all your key metrics in one place, you can more easily gain insights and generate ideas for flexibly adopting new solutions.

4.    Focus on communication.

When it comes to manufacturing performance, communication is key. Systems must be able to interact and communicate from various sites and among suppliers and departments. Without a comprehensive communication network for real-time data transfer, your updates won’t be as effective as they could be.

5.    Don’t neglect employee feedback and training.

Any new system can be difficult to manage. Prioritize employee success to ensure the effectiveness of your new tech, and don’t neglect to gather employee feedback from the very beginning stages of your legacy updating process. Learn where workers encounter challenges, features they’d like to see implemented, and problems they face in adapting to new systems.

By following these strategies when it comes time to update your legacy system, you can take your modernization efforts through the assessment to the implementation stages successfully. As a result, you can power a more transparent, productive manufacturing business with the tools in place to support your workers. Such an approach will lead to the agility your business needs to adapt to the rapid changes of a constantly developing world.

Building an agile business

When it comes to adapting legacy systems, maintaining agile methodology can best serve manufacturers. This framework focuses on collaboration, individual solutions, and ongoing improvement. As such, you’ll be able to work with stakeholders, suppliers, workers, and colleagues to produce high-quality products while retaining flexibility.

The COVID-19 pandemic proved the need for such an adaptive approach to manufacturing. By recognizing the importance of updates and following these strategies for implementing a better system, you can resolve the issues of your legacy platforms that are holding you back in the data-driven world.

Don’t let your legacy system drag you down with cost and implementation barriers. The right tools and strategies are available to enhance your manufacturing processes, if only you apply the proper planning, tools, and collaborative efforts.

If you need help analyzing and updating your legacy system, turn to the subject matter experts at USC Consulting Group.

This article is written by guest author Ainsley Lawrence. View more of Ainsley’s articles here.

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Lean manufacturing and Industry 4.0 are in some ways a case in contrasts. The former is a production methodology designed to reduce operational costs through a combination of process efficiencies, a lighter footprint and smart time management. In short, it’s a system of minimizing waste and maximizing productivity through the barest of essentials. According to a recent research report spearheaded by IndustryWeek, lean manufacturing systems is a major priority among manufacturers in the U.S. today, behind only quality management systems.

Industry 4.0 is next-generation technology, which relies heavily on state-of-the-art equipment, tools, data, and analytics to make automation possible. Here, it’s out with the old and in with the new, made possible by investing in industrial practices and smart technology that expedite production and reduce human error. Often, it’s assumed that Industry 4.0 can replace the human element altogether.

So if lean manufacturing aims to reduce operational expenses, while Industry 4.0 typically requires added spending, are the two mutually exclusive? Not necessarily. It is possible for them to coexist when Industry 4.0 tech is leveraged strategically as a supplement to, not a replacement for, your staff.

Originally appearing in the Lean Enterprise Institute’s blog Lean Post, a classic case in point is a company called Denso, which since its inception, has tried to prioritize its people first and foremost. But the company is now also taking advantage of technology to augment their workers’ ongoing performance.

Must be purposeful about IoT utilization

Headquartered in Japan, Denso specializes in automotive components and is perhaps best known for being Toyota’s largest parts supplier. Many companies these days are using the Internet of Things (IoT) technology to improve processes and enhance output. But as Denso North American Production Innovation Center Vice President Raja Shembekar discovered, IoT is all too frequently not put to its full or proper use. In other words, without proper planning, it has no real problem-solving application, at least among the competitors he observed.

Not being strategic and intentional about IoT implementation — and how it can support workers on the shop floor — raises the risk of not obtaining the intended result: improving output, quality, or ideally both.

You can stay lean and leverage Industry 4.0 technology all at once.

Concerned that Denso could fall into this tech trap, Raja built a small team composed of quality assurance managers and IoT aficionados to identify where production shortcomings existed and how, if at all, IoT capabilities could potentially fill in the gaps. They found just the thing by placing tiny sensors on cooling fans, which are used to maintain the temperature of brazing ovens for producing aluminum heat exchangers. The placement of said sensors on the fans enabled maintenance workers to swap out fans before they broke, forestalling production issues and avoiding lengthier timelines for parts to be ready for sale.

In short, IoT was able to provide workers with the insight and intelligence they needed to take action as it pertains to installation, supporting their roles. Raja noted that the maintenance team was skeptical about the sensors accurately forecasting when the fans would fall apart, but they played along.

“They took the fan out [and] the blades on the fan had disintegrated,” Raja recounted. “They were totally shocked that they had no idea this was happening and we could provide that prediction.”

As noted by Manufacturing.net, there is a risk in jumping aboard the Industry 4.0 bandwagon, simply because it’s the “in” thing to do. Organizations must first assess what their problems are and whether Industry 4.0 investments can actually solve those issues. This requires a complete assessment of current business processes as they exist and what desired outcomes are if they’re not being realized. Additionally, if Industry 4.0 can optimize the supply chain, as an example, manufacturers must make certain that their supply chain infrastructure can support the adjustments or installations that game-changing technology may entail.

Another way for lean manufacturing and Industry 4.0 to be cohesive is by getting to the bottom of the following question: Does the adoption of machine learning, IoT or some other form of computer-integrated technology supplant or support your team?

Workers expect job losses from AI, just not theirs

The answer will differ for everyone, but what is known is today’s workforce has a love-hate relationship with artificial intelligence. In a 2018 survey conducted by Gallup, approximately 75% of respondents said they anticipate more jobs will be lost than created as a result of AI’s increased adoption. However, only about 1 in 5 — 23% — were worried that their own job was in jeopardy.

While the increased implementation of AI has led to job losses, whether it does or not depends on management philosophy, according to the Lean Enterprise Institute’s blog. A mechanistic approach to business decisions relies heavily on technology, sometimes to the exclusion or replacement of actual workers. From an organic-systems perspective, however — which Raja ascribes — tech takes a backseat to employees who are on the front lines of warehouses, factory floors, and assembly lines.

“Technology provides data that allows the associate and the team leaders at the gemba [factory floor] to provide a far higher level of decision making,” Raja told the Lean Post.

Raja went on to state that at Denso, the addition of Industry 4.0 tech has helped workers make smarter, more well-informed decisions about how to continuously improve and enhance production through PDCA, meaning “Plan-Do-Check-Act.”  The goal at Denso is always to leverage tech so it provides work crews with actionable information about the current systems in place so they can react accordingly, not to take those decisions away from them. As Manufacturing.net recommended, it may be worthwhile to perform trial runs of innovative technology to see if it supports or supplants your workforce and where adjustments can be made. In essence, better to “try before you buy.”

For optimal gains when marrying Lean philosophies and Industry 4.0 principles, utilizing an operations management firm may be best. USC Consulting Group has the expertise and experience to help you achieve results by leveraging your existing technology and ensuring that it aligns with your manufacturing philosophy. Please contact us today to learn more about our offerings and how we may be able to help.

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Few innovations have so saturated modern society quite as much as digital has. Perhaps the best example of all is in the consumer products space. From navigation apps, streaming media services, mobile devices, voice assistants and so much more, artificial intelligence tools and features are regularly used by approximately 85% of Americans, according to a 2018 survey conducted by Gallup. And that was three years ago — the percentage has almost assuredly risen considerably since then.

The ubiquitous nature of digitalization has essentially forced businesses to take steps toward incorporating the latest and greatest technologies into their production processes and strategies. Its implementation is evidenced at just about every stage of the supply chain.

Has your company embarked on a digital transformation journey? No matter where your organization is in this shift, there are a few important things to be mindful of to ensure that the changeover is as painless as possible. Be aware of these issues during your company’s digital transformation journey:

1. Transformations don’t always take

Once businesses makes the decision to move forward with a transformation, those who are new to the processes may underestimate how lengthy it all can be – and their chances of finding success. In other words, even though the presumption is going digital naturally increases efficiency, it doesn’t always come to pass.

For example, in 2018, directors, front office executives spent a combined $1.3 trillion on digital transformation initiatives, according to reporting done by Forbes. However, of that total, $900 billion was ill spent, as the transformations never took hold.

Why not? There are plenty of reasons, but as noted by Harvard Business Review, it may have something to do with decision makers’ failure to put the right strategy or mindset in place before the transformation actually begins. Employees — not to mention people, in general — are creatures of habit. Installing new systems and technologies with which they’re unfamiliar can lead to frustration and resentment. That’s why it’s important to establish what workers can anticipate; namely, the changeover may come with some rough patches in the beginning, but the end result will make the challenge worth the effort. Therefore, it is pivotal to define a digital transformation strategy to help evolve your organization, as per digital marketing firm Dash.

2. Provide ongoing training

In a similar vein, digital transformations are described as such because the change is often substantial, even though it may occur pieces at a time to avoid major interruptions in production. That’s why it’s important to ensure staff members have the instructions they need to utilize unfamiliar equipment — and can provide directions to customers who may have the same difficulty making the transition.

A classic example is in the manufacturing space. According to Oxford Economics, the speed with which manufacturers incorporate robotics into their workflows can dramatically enhance production. Indeed, the study found that increasing robot installations by 30% within the next 10 years could lead to a 5.3% uptick in global gross domestic product.

While just about all business decisions are time sensitive, a sudden infusion of robotics can cause confusion and consternation amongst workers, which is part of the reason why digital transformations so often fail. Ongoing training, seminars, and fielding questions from staff is essential to digital adoption so nothing gets lost in translation.

3. Consider a digital transformation consultant

Financial institutions, warehouses, manufacturers, and processing centers have all implemented digital solutions into their workflows in one form or another. While you as an owner must serve as a leader in these efforts, you may not have the level of expertise to effectively answer your workers’ questions. That’s where a digital transformation consultant can be worthwhile. In addition to ensuring work processes go more smoothly with digital elements as opposed to physical or analog, a digital transformation consultant traditionally specializes in whatever industry new tools or solutions are being rolled out, be it manufacturing, consumer products, life sciences, or food and beverage. In short, a digital transformation consultant can make the unavoidable growing pains of process changeovers less painful.

4. Recognize the reality of the digital divide

It sure seems like the world as a whole has gone digital, especially when you consider that a majority of citizens in a number of developing countries own smartphones, according to polling done by the Pew Research Center. But it’s important to understand that access to digital technologies is not as ubiquitous as it may seem at first blush. Look no further than the United States. In a separate survey also conducted by the Pew Research Center, nearly 80% of homeowners who live in or along the outskirts of the city have broadband internet connections. However, less than two-thirds of Americans who live in rural neighborhoods can say the same.

Similarly, 83% of suburban residents own smartphones, Pew found. That percentage drops to 71% for Americans living in rural climes — a 12% gap.

Translation: If you’re looking to grow your business and cater to more customers, you may need to continue providing legacy services until digital technology and the accompanying infrastructure casts a wider footprint.

5. Make sure it’s scalable

While just about every industry has gone through some kind of digital transformation journey, they’re often confined to one particular department or sector, typically the one that needs it the most. In a recent survey of 200 manufacturing senior executives in the U.S. and Canada, more than half of the execs polled said their industrial internet-of-things innovations were small in scale and could not be subsumed by other units, IndustryWeek reported. This may be due to the pinch points that are so often associated with integration.

Making these efforts more scalable requires ongoing communication among departments, step-by-step instructions tailored to each department and selecting an integration platform that is user-friendly and fosters collaboration, IndustryWeek advised.

Transforming your work processes won’t be done overnight and it may not go exactly as you intended. However, USC Consulting Group has expertise in many different industries and can help your employees adopt and adapt to a new production approach more seamlessly than going about it on your own. Contact us today to learn how we can help.

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