A couple of years back, before the advent of Industry 4.0, manufacturing companies operated over a complex network of machines and disparate software systems. Despite the extensive use of software tools, computer technology remained limited to management, logistics, and CRM operations. The fourth industrial revolution brought transformative changes to the industry, calling into question the very concept of manufacturing. The advent of next-gen technologies like artificial intelligence and the internet of things has enabled automation at every stage of the production cycle. As a result, the processes have become faster, agile, and more efficient to yield greater productivity.
One of the most valuable endowments of Industry 4.0 to the manufacturing industry is the arrival of enterprise resource planning (ERP). The ERP systems have become the strength of the manufacturing industry, leading to a multifold increase in productivity levels. In addition to manufacturing, the ERP systems have become increasingly popular for inventory management, logistics, CRM, and supply chain management. Besides, ERP software development for manufacturing has enabled companies to grow and expand to new horizons and generate new revenue streams.
This post highlights the impact of different Industry 4.0 technologies on the manufacturing industry. Subsequently, we’ll discuss the future prospects of the fourth industrial revolution and what to expect from ERP software development for manufacturing in 2021.
Also read How Manufacturing Companies Can Benefit From Custom ERP
Industry 4.0 Technologies For Smart Manufacturing
ERP software development for manufacturing incorporates the following technologies to boost and enhance the overall production efficiency.
The Internet of Things
The industrial use of the internet of things (IoT) is gaining pace as an increasing number of manufacturers are investing in IoT worldwide. IoT happens to be the backbone of the fourth industrial revolution that plays a vital role in smart manufacturing. As a matter of fact, Industry 4.0 is often referred to as the industrial IoT or iIoT.
The advent of iIoT has significantly improved the manufacturing processes and is driving investments from other industries as well. It provides manufacturers more visibility into their core operations and facilitates seamless communication between suppliers, vendors, warehouse managers, and logistics experts.
Artificial Intelligence
The use of artificial intelligence enables manufacturing companies to gain a competitive advantage by aligning their operations in adherence to machine learning algorithms. With an AI-driven strategy in place, manufacturers can accelerate their production cycle and upscale their production capacity. Such growth is imperative to enhance the overall business ROI and aids them in expanding to new horizons.
The use of AI algorithms ensures that you don’t have to rely on your workforce for most of the operations. It automates mission-critical workflows, eliminates manual complexities, and aids in intelligent decision making. Besides, AI-powered machines can operate throughout the day with a minimal scope of errors or latency. Other benefits of AI in manufacturing include performance enhancement, operational efficiency, increased productivity, and better cost control.
Cloud Computing
Understandably, using IoT devices in manufacturing produces huge amounts of data. That said, there has to be a reliable medium to store this data and make it easily accessible to the authorized personnel. Using computer hardware for data storage may not suffice in the long-run. Besides, it is expensive, hard to maintain, and more prone to damage or theft.
Cloud computing is definitely the most effective way to get by the intricacies of data storage and handling. The cloud gives you unlimited storage space and easy access to data across a wide range of devices, without any geographical constraints. Other benefits include better flexibility, scalability, reduced overhead costs, increased security, privacy, transparency, and better insights into manufacturing data.
Big Data
Big data is a term that refers to the large volumes of data (both structured and unstructured) that an organization produces on a day-to-day basis. As already mentioned above, IoT devices and enterprise systems produce huge chunks of data every day. A large proportion of this data is unstructured and is normally pushed aside by the enterprises. However, analyzing and processing this data can help you extract valuable information about the production operations from a granular level. It helps you identify loopholes in the production pipelines and lets you improve your strategies to enhance production efficiency.
The process of analyzing and processing this enterprise data is called Big Data Analytics. Some common use cases of Big Data in manufacturing include predictive analytics, predictive maintenance, anomaly detection, production cycle management, production forecasting, and work cell optimization.
You may also be interested in reading Industry 4.0 and Its Impact On ERP Systems
The Road Ahead
There is no denying that the fourth industrial revolution has brought transformative changes to the manufacturing industry. Owing to the apparent benefits of smart manufacturing strategies, numerous organizations invested in ERP software development for manufacturing as early as 2013-14. A report by IDC reveals that the manufacturing industry had already spent $178 billion on iIoT as early as 2016. According to Verified Market Research, the global manufacturing IoT market was valued at $20.23 billion in 2019. It further states that the market value is likely to reach $147.49 billion by 2027. It exhibits a compound annual growth rate of 28.2 percent between 2020 and 2027.
How We Help You Grow Your Manufacturing Business With ERP Development?
We are an ERP development company that provides 360-degree enterprise solutions for a wide range of cross-industry use cases. Our seasoned developers have worked with several manufacturing companies to automate their mission-critical workflows and solve complex business problems. We use agile methodologies and an advanced tech-stack to develop performance-driven ERP software solutions that enhance business productivity and operational efficiency. We have a proven track record in ERP software development for manufacturing companies including startups and small-to-medium enterprises. For more information, visit erpsolutions.oodles.io or drop us a line at [email protected].
