January 25, 2024 Automate and Digitize: A Must for Manufacturers in 2024

Manufacturers can tackle rising costs in 2024 through digitization and automation, optimizing operations & overcoming compliance challenges.

By Grace Nam, Strategic Solutions Manager, Manufacturing, Laserfiche

In the face of the manufacturing industry’s contraction at the close of 2023, manufacturers find themselves navigating the persistent challenge of escalating operational expenses. However, amid these difficulties, a promising avenue for cost savings has emerged: digitizing and automating traditional paper-based processes that are highly regulated under various compliances. The transformative potential of process automation and integration represents a strategic pivot that enables manufacturers to weather economic challenges and positions them to gain a competitive edge.

As we venture into 2024, the current landscape demands a thorough exploration of manufacturing processes, identifying pain points and bottlenecks that impede optimal performance. Challenges such as legacy systems, manual data exchange management, and inefficient communication channels can hinder productivity and strain resources. However, these challenges also unveil opportunities for innovation and improvement.

The persistent problem of process delays

New research we conducted in conjunction with SME surveyed over 300 manufacturing professionals employed with organizations with 101 or more employees. The study revealed that a third of respondents experience work delays in specific areas or processes multiple times a week. As three-in-five respondents (60%) indicated the primary organizational need driving interest in process integration is for increased operational efficiency, only 30% of respondents report complete automation in equipment capacity utilization, and similar figures are observed for sales sheets/documents, quality management and inspection sheets.

The survey shows the potential of automation and digitization, as those who leverage Enterprise Content Management (ECM) report a staggering 96% of ROI satisfaction rate, which ranks the highest level of ROI satisfaction among 15 other manufacturing applications surveyed, coupled with a substantial return on investment. However, only 15% of respondents currently employ ECM, signaling a substantial opportunity for organizations to enhance efficiency and mitigate delays.

To achieve operational excellence, manufacturers should actively embrace decision-driven process automation, especially within quality assurance processes and multi-stage inspections. By leveraging these digital solutions, manufacturers position themselves at the forefront of industry innovation, ready to meet future challenges with efficiency, resilience, and a heightened ability to deliver optimal client experiences.

Overcoming the compliance documentation hurdle

Compliance documentation is the leading challenge for manufacturers, according to the survey. The high expenses associated with compliance documentation make it a formidable obstacle for manufacturers, especially with the constant influx of new requirements, industry-specific mandates and dynamic regulatory changes spanning regions and countries. To preemptively counteract the potential escalation of these costs, manufacturers should focus on automating and streamlining their compliance processes.

Process integration emerges as a critical driver for increasing operational efficiency and improving business agility and scalability within manufacturing organizations. Manufacturers can unlock new efficiencies and reduce costs by embracing digital compliance document and records management, implementing standardized systems and fostering interoperability with metadata management. This strategic approach goes beyond mere cost control, offering opportunities to redefine processes and procedures, enhance operational systems, and support both business agility and scalability.

Embracing digital solutions

Embracing digital solutions in manufacturing is becoming increasingly imperative as businesses recognize the transformative benefits of digitizing processes. The shift towards digitization not only eliminates the laborious task of manual document reviews but also substantially reduces the risk of document loss associated with traditional physical transfers between offices. A pivotal advantage also lies in establishing a comprehensive audit trail, ensuring the traceability of all documents throughout their lifecycle. By embracing these digital advancements, manufacturers not only streamline their operations but also fortify their data management practices, fostering a more efficient and secure working environment.

Responding to the evolving technological landscape, manufacturing professionals are acknowledging the pivotal role of artificial intelligence (AI), cloud computing, document/records management and cloud integrations in their technology plans. This collective emphasis signifies a unified industry-wide drive toward digitization. Particularly noteworthy is the prominence of AI, underscoring its critical role in data centralization and automation. The integration of intelligent AI-driven data capture tools can be a strategic move to enhance operational efficiency and provide clients with a seamless digital-first experience without hefty investments or overwhelming implementation that requires resources and time that manufacturers may feel discouraged stepping into the future digital era.

Ultimately, the manufacturing industry stands at a critical juncture, where embracing digital transformation is not just a choice but a necessity.  Embracing digitization and automation presents a multifaceted opportunity for professionals to streamline operations, enhance efficiency and fortify resilience against external shocks. As we navigate through 2024, the manufacturing industry stands at the precipice of transformation. Addressing these challenges through the adoption of digital solutions, process automation and strategic integration not only mitigates current issues but also positions manufacturers to thrive in an increasingly digitized landscape.

Grace Nam is the Strategic Solutions Manager at Laserfiche, where she specializes in solving the toughest industry challenges with innovative solutions. She performs market research to revamp processes in the most highly regulated industries — healthcare and manufacturing. Nam empowers industry leaders with her insights, helping organizations implement strategies and strengthen organizational resilience, based on the latest technologies and industry trends. Over the course of her career, Nam experienced firsthand the challenges in adopting new technologies that the healthcare and manufacturing industries face, and how this impacts employee productivity and satisfaction, as well as organization efficiency in the face of shifting customer demand or unexpected disruptions. Prior to her role at Laserfiche, Nam drove strategy as part of the marketing teams at Legrande Health and Crane ChemParma & Energy, among other organizations. She lives in Irvine, California.

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