Cloud Connectivity Improves Manufacturing Capabilities

Manufacturing employee using cloud-based tablet on the floor of the plant

A recent article in Forbes Magazine highlighted how technology is impacting the manufacturing industry. Among the other points it raised, it noted that surveys had found that:

• 55% of manufacturers are using the cloud platforms and technologies to better manage their supply chains.
• 48% are using cloud platforms and technologies to more efficiently manage their new product introductions.
• 64% use the same tablets as consumers use on the plant floor to improve connectivity and communications.
• 40% are building “smart” products right now, or plan to do so within 5 years.

From the survey results, based on the responses of almost 200 manufacturing companies ranging from food and beverage to automotive, it is obvious that the age of “connected” manufacturing, and IT management is here. This connectivity gives them a here-to-fore unavailable agility that enables them to work better with both suppliers and customers. On one hand, this affects management of the supply chain, and on the other, both innovation of new products and quality of existing ones. Interestingly, although we hear so much about the contraction/consolidation of manufacturing in this country, 90% have reported that they have actually grown over the past five year. The Cloud has also allowed more than 10% of the respondents to become actively engaging in “re-shoring”, the reversal of off-shoring…in other words, bringing their manufacturing, in full or in part, back to the United States.

Almost 3/4s of the companies state that use of the “Cloud” is giving them superior insight into their overall businesses and a full 90% say that they now have better access to company data. They are also reporting better communication with suppliers and customers, as well as with transportation vendors. By the end of the coming year, four in ten expect to be using big data analytics, or be well along in the planning stages of doing so.

The majority has stated that use of the “Cloud” improves their ability to deal with fluctuating customer demands and the consequential fluctuating supply chain needs. This allows them to become more customer-centric, something required by the upswing in customer-driven commerce.

Over the next five years, approximately two out of three of these manufacturing companies are looking at cloud-based technologies to: 1) increase connectivity with their supply chains, 2) improve their quality assurance programs, and 3) build upon their communications capabilities between plant and enterprise.

All-in-all, it is safe to say that the age of “connected manufacturing” though IT management has arrived.

DynaSis is an Atlanta based managed IT service provider and has worked with a variety local manufacturers since its inception in 1992. DynaSis world-class data center provides safe, reliable and economical cloud computing service to its clients. www.DynaSis.com. 678.218.1769.