Futureproofing your manufacturing business to mitigate risk
By Kevin Dherman, Chief Innovation Officer at SYSPRO In 2020, Industry 4.0 technologies played a decisive role in many manufacturers’ pandemic responses and it helped these companies to keep their operations running during the crisis. Many were able to keep operating in the face of shortages of workers or raw materials, whilst others struggled to keep up with the sudden spike in demand. How did Industry 4.0 technologies help those companies in their efforts to reduce the negative impacts of the crisis and reduce the risks for their business? The SYSPRO 2020 Manufacturing CFO 4.0 Survey, which was conducted in October 2020, shows how manufacturers and distributors handled the operational shifts brought on by Covid-19. It revealed that 60% of manufacturers and distributors were impacted by supply chain disruptions. 47% of businesses were unable to function due to operational staff reliance on-site; while 29% of businesses felt that their business systems did not provide them with the availability and accessibility to manage the changes that the pandemic introduced. As these businesses attempt to stabilise, many are considering adopting emerging technologies and Industry 4.0 to mitigate the risk of major disruptions in the future. The challenge for many of these businesses is understanding which technologies to adopt, when to pursue this transformation and how to budget for it. There are several Industry 4.0 technologies that have real potential to help futureproof Australian manufacturing and distribution businesses in the next five years. The automated warehouse It is important to note that transitioning to an automated warehouse is a long and expensive journey. In most cases, it will take three to five years for manufacturing and distribution businesses to be fully automated. At which point there will still at least 65% of workers still in the warehouse. This is because the automation augments […]