How data is setting manufacturing on the smart path to digitalisation
In 2022, the smart money’s on digital transformation projects that aim to fortify fragile supply chains.
It seems there will be little let-up in supply chain disruption in 2022 for UK manufacturers – and many are focusing their investments on digital transformation accordingly.
The year began well enough for the industry, with domestic demand rising, raw material shortages falling and delivery delays in abatement.
But Russia’s invasion of Ukraine in March has already brought with it additional headwinds – a surge in energy costs is the most obvious for heavy-industry companies, but Russia is also a large exporter of crude oil, as well as commodities such as wheat and metals used in the aerospace, automotive and electronics industries, among others.
Sanctions and export restrictions are a valid, justifiable and necessary response to the devastating loss of human life and vast displacement of people that the conflict has triggered – but these penalties will also send additional shockwaves through the global supply network.
Are UK manufacturers prepared? Certainly, they’ve had plenty of practice in recent years, which have seen them wrestle with parts and materials shortages, sudden factory shutdowns and transportation difficulties.
On the positive side, these challenges have done much to focus manufacturing minds on how best to use technology to make supply chains more resilient to shocks, according to a recent survey from Digital Catapult, the British government innovation agency for advanced digital technologies.
At the tail end of 2021, researchers from Digital Catapult spoke to over 100 UK manufacturing leaders at director level or above; almost two-thirds of them (64 per cent) confirmed that, in terms of 2022 digital innovation initiatives, strengthening supply chains was their top priority. That’s comfortably ahead of other objectives such as reducing operational costs (57 per cent), growing their businesses (54 per cent) and becoming more competitive (51 per cent).
“From empty shelves to petrol queues and driver shortages, bosses from across all industries are taking note that our brittle supply chains are no longer fit for purpose. It’s hardly surprising, therefore, that UK industrial pros have highlighted overhauling supply chains as a top strategic priority in 2022,” said Digital Catapult’s director of digital supply chains, Tim Lawrence.
So where might manufacturers start? The first goal must be visibility; in other words, manufacturers need greater insight into operations, in order to be able to identify risks and potential breaks in the supply chain before they hit.
