SC247    Topics     Technology    Cloud    GT Nexus

3 Ways the IoT Will Transform Manufacturing Processes

The Internet of Things (IoT) promises to connect all sorts of stuff to the Internet, from fridges and thermostats to factory equipment and wind turbines. And the big data those things produce promise to deliver new insights and cost reductions across the entire business ecosystem.

But for most of us, the smart manufacturing future seems far off, if not far-fetched.

Surprisingly, it’s not.

Seeking the IoT for help isn’t like wishing upon a star. The IoT isn’t fantasy. It’s real, and it’s happening. In fact, 18% of industrial machine companies are already using it to some extent. For manufacturers, looking ahead to the IoT is a smart move that can inform the way you solve major problems today.

Here are 3 must-knows about the IoT’s “smart manufacturing” revolution:

1. You Will Take Back Control of Your Outsourcing.
Manufacturers outsource to reduce costs. It’s a trend that won’t let up anytime soon. But outsourcing has a downside—the loss of control. You’re handing off production to someone else, and you don’t know how they’ll handle it. Quality control, assurance of supply, and sustainability all become issues. But that’s changing.

The IoT will provide better transparency into your partners’ processes. Smart machines in smart factories will communicate their real-time statuses to a centralized hub that can verify production. Location and time-stamped data will provide better visibility and control, so that offloading your production doesn’t have to compromise accountability.

2. Volatile Demand Won’t Cripple Production.
Manufacturing today is tough because demand is capricious. Markets saturate. Geopolitical events disrupt commerce. Emerging regions develop. Companies are discovering they need to stay on their toes to eke out a profit. Gone are the days of simply creating a good product and selling it.

These days, process matters just as much as product. The IoT and smart manufacturing will enable rapid process adjustments to changing demand. How? Picture a sudden order change coming into a smart factory where machines are designed to talk to each other. The order comes in, the machines assess one another’s capacity and coordinate with machines in another location. They then optimize operations, and begin altering production all on their own, perhaps dividing the workload between factories on completely opposite sides of the globe.

Internet of Things GT Nexus whitepaper download

3. Beyond Push and Pull, You’ll Be Able to Predict.
The old way of manufacturing was based on a push system. You’d produce a product based on your expectations of demand, and then push it out to various markets accordingly. Expectations like the best laid plans, often go awry. So the next step was to create a pull system, where demand and inventory stock triggered production up the supply chain. This is a good system, but it depends heavily on accurate data, and many companies find it difficult to execute without a centralized visibility platform.

The IoT will further incentivize moving toward a centralized visibility platform by taking push and pull a step further—it will use real-time data and analytics to predict demand, combining the best of planning and execution. Real-time data would feed into constantly improving models of demand, creating a production system that’s always in pulse with the markets.

Often, getting ready for adopting a new technology is painful. But in this case, it doesn’t have to be. Preparing your manufacturing supply chain to take advantage of the IoT means getting your centralized visibility platform in place to handle the IoT’s big data. There are already well-established ways to do just that.

Download the Whitepaper: The Internet of Things Supply Chain

Related: How Things Have Changed After 30 Years of Dot Com

Article Topics

GT Nexus News & Resources

The Current and Future State of Digital Supply Chain Transformation
Infor Coleman AI Platform to ‘Rethink Supply Chain’ and Maximize Human Work Potential
End-to-End Visibility: Handling the Demands of Retail
Mastering Supply Chain Finance
ERP Suppliers’ Changing Role
New Logistics TMS Platform Sets Sights on SAP
Amazon Selects Infor for Global Logistics Business
More GT Nexus

Latest in Technology

Agile and configurable WMS delivers for 3PL Logistics
SnapControl easily integrates any robotic device or system
Expanding Your Retail Horizons and How to Find the Right Fulfillment Services
Online Sellers Find Excellent Opportunities to Win More Customers this Easter
2023 Tech Trends in Warehouse Management Execs Should Know About
3PL Provider Improves Ecommerce Fulfillment from Multiple WMS Systems with New Data Architecture
Helping Brands Grow their Online Sales with e-Logistics & Readymade Fulfillment
More Technology

At GT Nexus, we built a company around a simple but very powerful idea: put a single cloud-based collaboration platform at the center of a huge but enormously inefficient industry - global trade and logistics - and give companies a rapid, low-cost way to enable hundreds of inter-company supply chain processes on a global scale, across entire trading communities, to drive new levels of operational efficiency and business agility. We provide the industry-wide collaboration platform that leaders from nearly every sector rely on to automate trade and logistics operations across their global partner networks. For these companies and their trading partners, GT Nexus is where global trade happens. Today, GT Nexus is the developer and operator of the largest cloud supply chain platform of its kind.

View GT Nexus company profile


Featured Downloads

How Roaming Shuttles Improve Order Fulfillment Operations
How Roaming Shuttles Improve Order Fulfillment Operations
Implementing this goods-to-person automated storage and retrieval technology improves customer experience, optimizes operations, and maximizes profitability.
4flow Supply Chain Management Study
4flow Supply Chain Management Study
Shipping, fast and slow – Balancing airfreight and sea freight in volatile manufacturing supply chains.

Warehouse Contingency Planning Template
Warehouse Contingency Planning Template
We’ve taken the guesswork out of warehouse contingency planning with this downloadable editable template; from performing a risk assessment to testing...
AlixPartners 2023 Disruption Index A Bias for Action Sets Growth Leaders Apart
AlixPartners 2023 Disruption Index A Bias for Action Sets Growth Leaders Apart
In their 4th annual AlixPartners Disruption Index, business leaders cite this as the central dilemma, with 85% of CEOs telling us that it...
2023 Digital Transformation Report
2023 Digital Transformation Report
In this 2023 Digital Transformation Report, we share insights gained from our annual research on technology trends and digital transformation and explore the...