Every manufacturer can harness the full potential of business data by implementing data-driven models for decision-making. Here, weāll discuss the need for data analytics in manufacturing and the factors to consider when choosing the right manufacturing analytics solutions partner.
Manufacturing analytics is the process of using operational and supply chain data, advanced technologies, and statistics to identify patterns and trends, forecast future demand, and derive meaningful insights for day-to-day decision-making. According to GII Global Information, the big data analytics in the manufacturing industry market size is expected to be $8.93 billion in 2024 and predicted to grow at a CAGR (compound annual growth rate) of 21.60% to touch $23.72 billion by 2029.
The same report mentions a McKinsey study, which showed that a data-driven business is twenty-three times more likely to attract clients and nineteen times more likely to be profitable than its competitors that donāt use analytics. A recent report by Deloitte suggested that 86% of the respondents (manufacturing executives) believe that smart solutions will drive competitiveness in the coming five years.
In such instances, an enterprise from the sector needs to invest in manufacturing analytics solutions and participate in Industry 4.0. This is best achieved by partnering with an analytical solution provider and digitally transforming the business processes under expert guidance. But how would you identify and select the right supply chain partner?
In this blog, weāll discuss the guide to choosing the right manufacturing analytics solutions partner and the role of analytics in the industry.
Digital transformation in manufacturing is a continuous and long-term process that requires regular monitoring to adopt the latest technologies and achieve the expected results. A manufacturing analytics solutions partner provides end-to-end services to build, develop, implement, customize, integrate, and maintain the data models. However, not all service providers are suitable for your business. Choosing the right analytics partner is crucial to be successful in your business.
Here are a few factors to consider when hiring a manufacturing analytics solutions partner in the industry.
The increasing demand for data analytics has resulted in many new service providers entering the market. However, individual experience is necessary when building AI and ML analytical models for a manufacturing enterprise. Enquire the details about the team membersā experience in the field before hiring a manufacturing analytics solutions partner.
Another important aspect to consider is whether the company has knowledge of your industry (manufacturing) and niche based on the products you produce. This is to ensure that the manufacturing analytics solutions partner understands the industry-wide practices, international regulations, etc. when customizing the analytical models and setting up the dashboards.
Manufacturing analytics implementation is a time-consuming process. The service provider has to build data pipelines, streamline workflows, automate processes, customize dashboards, and set up third-party integrations. However, you want a partner who can complete the project as per the agreed-upon schedule and deliver the insights to your employees.
Compatibility in vision is another important factor. The service provider may have the necessary experience and technology but if they cannot understand your business vision or donāt align with your processes, it can create clashes and discord between teams. Choose a manufacturing analytics solutions partner who is flexible enough to accommodate your requirements and encourage better collaborations.
Does the company offer a complete scale of solutions to tackle end-to-end changes in your business processes? Partnering with an end-to-end service provider will help ensure that the entire project will be handled by a single company. You donāt have to work simultaneously with different analytical and AI teams to transform your manufacturing processes digitally. Furthermore, you can have your own manufacturing analytics platform developed by the company.
Flexibility and scalability are necessary for enterprises to thrive in the ever-changing market conditions. That means your service-providing partner should be equally flexible and scalable to accommodate your dynamic requirements. This will empower you to take proactive measures to grab more opportunities.
Real-time insights help make quick decisions. However, the insights have to be accurate to minimize the risk of incorrect decisions. The analytics service provider should prepare your data and improve its quality to provide meaningful insights. Partner with a manufacturing analytics solutions partner who also takes care of data engineering and management.
Cloud-based manufacturing analytics are a part of digitally transforming your enterprise. The insights and data visualizations can be accessed by your employees through the personalized dashboards. However, the systems need regular monitoring and periodic updates to work without glitches. Choose a service provider who can become a long-term maintenance and support partner.
Finally, the pricing models offered by the company should also be considered. A reliable manufacturing analytics solutions partner will be transparent about the prices and state the additional costs upfront. Moreover, you should have the freedom to choose a pricing model based on your project specifications.
Data analytics in the manufacturing industry combines smart manufacturing solutions like data engineering, IoT (Internet of Things) devices, predictive analytics, big data analytics, data visualization, machine learning, edge computing, automation, etc., to enable smarter, agile, and scalable factories with greater productivity.
So, what insights you can provide with analytics to the manufacturing industry? Here are a few:
The insights from manufacturing analytics can help your factory teams adjust production quantities in real time based on the stock left in the warehouse, the stock at the factory unit, and the market demand for the product. Additionally, you can identify the root cause for low quality in products, product failures, etc. Industrial IoT (IIoT) analytics helps with production and quality management.
The supply chain is crucial for a manufacturing company. In times when disruptions can lead to major losses, it is essential to streamline the various elements of the supply chain and eliminate unwanted steps. Be it order management, supplier management, demand forecasting, setting up early warning systems, or transportation analytics, supply chain analytics unlocks the true potential of your business data and helps make more efficient decisions.
OEE is Overall Equipment Effectiveness, an international gold standard of measurement to determine the performance and effectiveness of a manufacturing process. A higher OEE score indicates that the equipment and manufacturing processes are efficient in producing a higher quantity of products while experiencing fewer delays. Manufacturing analytics solutions partner helps with predictive maintenance for manufacturing equipment to prevent unexpected breakdowns.
A data analyst tackles multiple responsibilities in the manufacturing industry. As your manufacturing analytics solutions partner, the service provider has to handle the following:
A reliable supply chain partner can provide the necessary support for a manufacturing enterprise to gain an edge over competitors and grab market opportunities before other businesses. A good supply chain partner will have the following attributes:
Operational performance refers to the tasks related to sourcing, procurement, production, demand forecasting, logistics, etc. The SCM partner should use the latest technology and analytical platforms to provide top-class support services to your manufacturing business. Manufacturing analytics solutions increase operational efficiency by helping you identify the right supplier, alternate channels for faster procurement, quicker distribution, etc.
Technological adoption is a must to survive todayās market conditions and uncertainties. The supply chain partner has to adopt the latest technologies like artificial intelligence, machine learning, big data analytics, etc., and embrace digital transformation to provide real-time support to manufacturers by optimizing network flows, streamlining production, increasing supply chain transparency, and promoting sustainability.
Another important aspect of a good supply chain partner is how well it can align its business values and strategies to help you achieve your long-term goals. You and your supply chain partner should have a common point to make your business more scalable, flexible, agile, and adaptive to the changing market conditions. Furthermore, the SCM partner should give greater importance to learning, innovation, and sustainability. You should both choose manufacturing analytics to build strong partnerships.
Manufacturing business analytics solutions can offer various benefits to your enterprise and help you achieve the following:
Manufacturing data analytics is essential for an enterprise to overcome the various bottlenecks and challenges in production, distribution, and customer management. It empowers manufacturers to make better and faster decisions based on analytical insights.
Donāt let your manufacturing data go to waste and unused. Join the Industry 4.0 revolution and adopt smart technologies to gain a competitive edge. Hire a manufacturing analytics solutions partner to implement the data models in your enterprise. Increase revenue, enhance customer experience, and become an industry leader.
Schedule a meeting with our data analytics team to learn more!
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Akansha Rani ~ Content Creator & Copy Writer
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