September 22, 2025 How Smart Tech Turns Uncertainty Into Opportunity

How manufacturers are using smart technology to transform supply chain unpredictability into a strategic edge and drive industry innovation.

By Phil Lewis, SVP Solution Consulting at Infor

The manufacturing landscape has never been more unpredictable. One day, a port strike in Hamburg creates ripple effects across global supply chains. The next, extreme weather disrupts agricultural yields, driving up material costs. Meanwhile, regulatory changes are arriving at breakneck speed, and experienced workers are retiring faster than skilled replacements can be found.

For industrial manufacturers, this isn’t just background noise. It’s the new normal. But, despite these daunting challenges, leading organizations are discovering something remarkable: the same technologies designed to optimize operations in stable times can actually transform uncertainty into competitive advantage. In fact, research shows that 80% of organizations agree that success depends on the use and adoption of new technologies, signaling a fundamental shift in how industry leaders view the role of digital transformation.

Beyond Survival Mode: The Data-Driven Response to Modern Manufacturing Challenges

Traditional approaches to manufacturing disruption typically involve reactive measures, such as emergency sourcing, expedited shipping, or manual workarounds. These solutions work in the short term, but they’re expensive and unsustainable. More importantly, they keep manufacturers in perpetual survival mode rather than enabling them to thrive.

The manufacturers who aren’t just surviving but gaining market share during these turbulent times have one thing in common: they’ve adopted connected, data-driven systems that offer real-time visibility across their entire operation. These aren’t just technology upgrades. They represent a fundamental shift in how manufacturing decisions are made.

Take supply chain disruptions, for example. Companies without integrated systems often find out about problems through customer complaints or missed delivery dates. In contrast, manufacturers with smart, connected systems receive early warnings about potential delays, automatically assess alternative sourcing options, and adjust production schedules before disruptions cascade through their operations.

This proactive approach extends beyond simply managing supply chains. In today’s volatile markets, where material costs can shift daily, integrated systems provide immediate visibility into how these changes impact project budgets, profit margins, and competitive positioning. Instead of scrambling to understand the implications weeks later, manufacturers can make informed decisions in real time.

The Hidden Costs of Flying Blind in Complex Supply Networks

The complexity of modern manufacturing cannot be overstated. A typical manufacturer might source materials from dozens of suppliers across multiple continents, each subject to different trade policies, weather patterns, and regulatory requirements. Managing this complexity manually is virtually impossible.

Without clear visibility into material availability, location, and cost-effectiveness, manufacturers are essentially flying blind. They might secure a contract based on material costs that were accurate last month, but no longer reflect current market conditions. Or they might plan production schedules without knowing that a key supplier is experiencing delays due to port congestion thousands of miles away.

The financial impact of this lack of visibility adds up quickly. Even minor fluctuations in material costs can disrupt project budgets, while supply chain delays can trigger penalty clauses in customer contracts. More damaging still, these disruptions erode customer trust and can permanently damage supplier relationships that took years to develop.

Perhaps most concerning is how information overload can paralyze decision-making during critical moments. When disruptions occur, manufacturers are flooded with data from multiple sources, including supplier updates, logistics reports, regulatory alerts, and customer communications. Without integrated systems to distill this information, decision-makers struggle to sift through the noise, often defaulting to cognitive biases or outdated assumptions.

Automation as the Great Equalizer in the Skills Shortage

The manufacturing skills shortage represents one of the most persistent challenges facing the industry. As seasoned workers retire at unprecedented rates, they take with them invaluable institutional knowledge. Replacing them is both difficult and costly, with competition for talent driving higher labor expenses industry-wide.

However, smart manufacturers have discovered that automation can be more than a cost-cutting tool. It can preserve and amplify institutional knowledge. By automating core functions and digitizing processes, knowledge becomes embedded in the systems rather than being dependent on individual expertise.

This doesn’t mean replacing human workers with machines. It means enhancing human capabilities with technology that performs routine, repetitive tasks, allowing skilled workers to engage in higher-value activities like problem-solving, innovation, and relationship building. Machine learning algorithms can process thousands of data points daily, identifying patterns and anomalies that would take human analysts weeks to uncover.

The productivity gains from integrating automation are substantial. Organizations that have done so report reduced labor costs as well as improved quality control, faster decision-making, and better ability to scale operations without proportionately increasing workforce needs. By using AI and automation strategically, companies can cut job costs by up to 40% while unlocking new efficiencies and profits that extend far beyond simple cost savings.

Compliance in the Age of Constant Regulatory Change

Regulatory compliance has evolved from an annual review process to an ongoing operational requirement. Changes in safety standards, environmental regulations, and trade policies occur with increasing frequency, and each presents substantial financial risks if not properly implemented.

Manual processing of regulatory changes is not only time-consuming but also prone to oversight errors. A single missed requirement can lead to production shutdowns, costly corrective measures, and reputational damage that extends far beyond immediate financial impact.

Automated compliance systems have become essential for manufacturers operating in highly regulated industries. These systems continuously monitor regulatory databases, automatically flag relevant changes, and integrate new requirements into existing operational procedures. More sophisticated implementations can even model the impact of proposed regulations before they take effect, enabling manufacturers to prepare proactively rather than scramble reactively.

The competitive advantage here extends beyond risk mitigation. Companies that can quickly adapt to new regulations while maintaining operational efficiency gain significant advantages over competitors still struggling with manual compliance processes.

Real-Time Intelligence: The Foundation of Resilient Operations

The common thread connecting successful responses to all these challenges is real-time intelligence. Whether dealing with supply chain disruptions, cost fluctuations, skills shortages, or regulatory changes, manufacturers need immediate access to accurate information and the analytical tools to act on it effectively.

This intelligence comes from integrating previously siloed systems (ERP, supply chain management, production planning, quality control, and compliance monitoring) into a unified platform that provides comprehensive visibility across the entire operation. Advanced analytics and artificial intelligence layer on top of this foundation, identifying patterns, predicting potential issues, and recommending optimal responses.

The practical impact is transformative. Instead of managing by exception and reacting to crises, manufacturers can manage by intelligence and anticipate challenges. They can evaluate multiple scenarios simultaneously, understanding the cost, capacity, and sustainability implications of different decisions before committing to a specific course of action.

Building Tomorrow’s Manufacturing Ecosystem

The future belongs to manufacturers who see technology not as an operational expense but as a strategic asset. The organizations thriving in today’s uncertain environment prioritize data connectivity across all systems, automate routine processes to preserve human expertise for strategic tasks, and maintain agility to respond quickly to changing conditions.

Succeeding in this environment requires more than deploying new software or purchasing the latest equipment. It demands a fundamental rethinking of how manufacturing operations are designed, managed, and optimized. This means breaking down silos between departments, investing in systems that can grow and adapt with changing needs, and fostering a culture that values data-driven decision-making over intuition-based assumptions.

The investment in these capabilities pays dividends across multiple dimensions. Companies report improved operational efficiency and reduced costs, as well as enhanced customer satisfaction, stronger supplier relationships, and greater ability to capitalize on emerging market opportunities. This commitment to technological advancement is reflected in the fact that 78% of organizations expect to increase technology investments by 20% or more over the coming years, signaling widespread acknowledgement that digital transformation is essential for survival.

Looking ahead, the manufacturers who will define the next era of industrial success are those who accept that uncertainty isn’t a temporary hurdle. It’s a permanent feature of modern business that smart technology can transform from liability into competitive advantage.

About the Author:
Phil has been part of Infor for 20 years and leads the International Solution Consulting team. The International team consists of solution architects, solution consultants and technical consultants, all focused on providing exceptional solutions to customers across EMEA and APAC. The entire team is driven to create value for customers by architecting world-class cloud services, based on Infor’s portfolio of industry-specific CloudSuites, Strategic Edge solutions, digital platform technologies and innovation offerings.

Phil is passionate about innovation, and how the array of digital technologies available today can transform organisations of all sizes…enabling them to take advantage of new opportunities and align for growth, both today and in the future.

www.infor.com

Subscribe to Industry Today