LOCALIZED PRODUCTION / TRANSFORMING SUPPLY CHAINS
Most notably, the pandemic made manufacturers realize the benefits of localized production and its ripple effects of mitigating supplier risks, improving efficiency and ensuring delivery of raw materials. The larger trend is towards reshoring to ensure customer proximity, labor supply and synergies in the business ecosystem, all leading to advantages of faster time to market, lower working capital, favorable government policies, and increased resiliency.
To transform supply chain, companies will look for seamless integration of end-to-end solutions for increasing traceability and transparency within the entire ecosystem. By implementing technologies such as cargo-tracking, cloud-based GPS, and RFID, companies can have visibility into nearly every part of the supply chain along with the clear benefit of reacting appropriately to the unexpected.
EMERGENCE OF DIGITAL FACTORIES
Much has been written about the importance of Industry 4.0 and how it’s helping manufacturers to increase operational visibility, reduce costs, expedite production times, and deliver exceptional customer support. In 2021, the focus on digitalization will continue to be a priority for most manufacturers. Investment in technologies such as sensors, machine learning, real-time monitoring, autonomous systems, digital twinning will help build resiliency and achieve significant efficiency gains.