PROCESS AUTOMATION NEGOTIATING A ROCKY ROAD


The road to recovery: in uncertain times business spend is the key to unlocking manufacturing growth, says Ronnie Wilson, Group Executive Vice President, Serviceware


M


anufacturing has been one of the hardest-hit sectors during the pandemic – and despite September


marking the fourth consecutive month of increased output, there is still a long way to go on the road to recovery. Since March, the sector has been battling a range of challenges – from operating with reduced workforces to implementing social distancing measures in typically worker-dense settings. This is whilst firms have been facing ongoing pressures to innovate and make use of new Industry 4.0 technologies. Currently, the biggest challenges keeping


the manufacturing c-suite up at night are issues surrounding cash flow and liquidity following a downward turn in demand, production and revenues. In such an uncertain and pressurised economic environment, these business leaders are under increasing pressure to make immediate cost savings. This is where leveraging strategic cost measures will be crucial to mitigate the impact of the short- term pandemic fallout.


It’s important to have a means to allocate, track and


accurately declare costs, while simultaneously transforming the business model,


organisational design and staff working patterns to that required of the ‘new normal’


Aside from the pandemic, Brexit is likely to


bring major global supply chain disruptions – affecting suppliers by driving reduced demand and impacting the ability to fulfil orders on time. Manufacturers will also need to consider potential charges and tariffs for cross-border trading – which are likely to add increased pressure during an already volatile economic climate.


Focusing on the now is all well and good, but ensuring future growth will rely heavily on implementing the right people, skills, and industrial technologies. Never has there been a greater need for manufacturers to embrace a range of industrial technologies to not only navigate current market challenges, but to future-proof themselves in a rapidly advancing landscape. IoT, AI, analytics, augmented reality (AR), digital twins, blockchain and cloud computing are just some of the Industry 4.0 technologies available for today’s manufacturer, However, where cost pressures continue to mount, innovation can often be deprioritised – but tech-fit manufacturers will be the strongest


Though investment may be


the last thing on the agenda for manufacturing firms battling


through currently stormy seas, on the agenda it must be. In these extraordinary times, comprehensive, current and


transparent data will provide a vital lifeline for manufacturers


in the survival of the fittest. Even before the pandemic, business


support functions within manufacturing were under pressure to shift from being cost- centres to becoming value-centres. And for manufacturers committed to success in the new normal, uncovering the truths behind current financial and operational situations, and adjusting both spend and strategy in light of that knowledge, will be essential. To accomplish this, manufacturers need


complete visibility of all financial, IT and other business assets, along with operational performance data, and the costs attached to each. Analysing this information must lead to a clear understanding of costs vs value, to inform effective investment planning. Responses, whether they be to financial challenges, operational or market changes, customer demands or specific business cases, should be automated where possible – to drive up efficiency while driving down both error and cost. Cutting costs and fostering transparency is


often more complicated than just picking and using one of the many software tools in the market. However, financial management tools are crucial in enabling manufacturers to gather vital real-time operational, project and vendor cost data – in essence, to uncover the truth around IT costs and make smart financial decisions. These tools enable fact- based scenario planning and in turn help ensure that innovation and digital strategies take centre-stage in optimising services and refining processes – ultimately leading to further long-term cost savings. During the pandemic, supply chain


challenges have highlighted just how essential manufacturing is to our country’s survival. Firms must therefore buffer themselves against further forthcoming uncertainties – and prepare for future growth.


Serviceware serviceware-se.com


FEBRUARY 2021 | PROCESS & CONTROL 37


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64