Some manufacturers are stuck in the past. Those still using legacy systems are crippling themselves with a lack of connectivity that hinders production and response time. Manufacturers at the start of their modernization journey have the most to gain from upgrades to their data management and automation processes. In fact, according to Harvard Business Review, about $1 trillion is left on the table each year due to a failure to digitize. 

Global unrest, COVID-19, war, climate change and economic uncertainty all exacerbate existing manufacturing and supply chain challenges. Inventory tracking has been more challenging than ever, if not impossible, because at times there was no inventory to track or no one onsite to track it. 

Leveling Up Technology with a Digital Thread 

New technology and digital transformation allow companies to collaborate on a new level. Together, they create a highly digital environment that promotes better data-sharing, transparency and communication. This leads to a great level of connectivity, from the shop floor to the top floor, and outward to partners and customers.

Maintaining connectivity between departments and locations ensures traceability of products, and transparency across the enterprise. It also gives decision-makers advance notice of potential issues. This gives them more time to plan and proactively act on market challenges in real time. Having a single source of truth, in one centralized location, gives stakeholders the ability to evaluate the facts and make the best decision at the right moment.

Another analogy for digital connection is the Florida Keys and the inter-coastal highway. The Florida Keys in this analogy are the islands of operations, and the equivalent of the inter-coastal highway is connected smart manufacturing solutions. Historically, people needed to move from island to island on boats. Now 40+ bridges and over 100 miles of roads over the waterways make for much better and faster connectivity. Similarly, manufacturers in the past have relied on paper and legacy systems on their various islands of operation. But with a digital thread acting as a bridge between departments and silos, information is able to flow freely and easily. 

These smart manufacturing platforms connect operations and employees, making data structured and un-siloed. By collecting data across the entire lifecycle, from research and development, to production, to delivery to the customer, the digital thread informs all the systems of a product's entire lifecycle and journey. In this analogy, the islands are different phases of production that were disconnected and sharing information between each of them was an arduous process, but now the situation is transformed; just like people no longer need to wait for a ferry to travel through the Florida Keys. 

Don’t Miss the Boat

By having real-time production data available at the ready, organizations can track critical KPIs throughout production lifecycle, and can adapt strategically and dynamically as production progresses. This allows operators to make decisions faster and more accurately. More open and transparent communication between production stages and partners also makes manufacturers better partners than those who don’t adopt modern practices for open communication.

If agility is the main objective of manufacturers, a strong digital thread provides that. During uncertain times, businesses must do two things: reduce waste and protect revenue. Modernizing systems creates opportunities for both objectives, while also strengthening the supply chain and preparing for the future.

Weaving Together a Strong Digital Thread

A strong digital thread can be woven to increase productivity, protect against volatility and boost profits because when manufacturing, quality management and supply chain planning systems are all working synchronously, manufacturers are better equipped to adapt and respond to supply chain disruption when it occurs. 

Ara Surenian is vice president of product management at Plex Systems.