The 4 key trends to watch for manufacturers

With the COVID-19 pandemic accelerating the process, it is no news that manufacturers need to become more resilient and sustainable in managing their operations. Microsoft conducted its IoT Signals Manufacturing Spotlight to present insights from companies on the driving forces of digital transformation, their plans and challenges.

Join us to uncover the main challenges found.

Challenge #1: Customization

Tailor-made products, delivered fast 

In the past, businesses often offered products that were designed to be suitable for a wide range of customers. However, this approach is no longer effective in today's market. Consumers now have access to more information and options than ever before. As a result, they have come to expect products that are customized to meet their specific needs and preferences.

Additionally, with the rise of e-commerce and on-demand services, customers also expect to receive their products quickly and efficiently. Therefore, businesses that want to remain competitive must be able to offer personalized products and fast delivery in order to meet the demands of modern consumers.

Challenge #2: Regionalization

Closer to home: Navigating supply chain challenges in the global market

The global economy has been faced with a multitude of challenges that have put a strain on supply chains. From political instability and natural disasters to the ongoing COVID-19 pandemic, companies had to find new ways to source inputs and manufacture products closer to their consumers.

One of the main reasons for this shift is the need for greater supply chain resilience. By sourcing inputs and manufacturing products closer to their consumers, companies can reduce their dependence on long, complex supply chains that are vulnerable to disruptions. This not only helps to mitigate risk, but it also allows companies to respond more quickly to changes in demand.

However, creating a more localized supply chain is not without its challenges. Companies must navigate a complex network of regulations and tariffs, as well as find ways to work with local suppliers and manufacturers. Additionally, many companies may not have the infrastructure or resources in place to make this transition yet. Despite these challenges, companies that have set out on this path are finding that the benefits of localization far outweigh the costs. 

Challenge #3: Digital Differentiation

Digital Skills: The Hidden Key Competitive Advantage in Manufacturing

Digital skills used to be the domain of a manufacturer's IT deparment. Everyone had to rely on their expertise to develop new tools, automate tasks and bring the latest and greatest in innovation to the table.

However, recent changes in the business envrionment have shifted the importance of digital skills throughout the organization. Remote work has become more common, which has increased the need for employees to be proficient in digital tools and technologies. Additionally,  rising labor costs have made it more important for manufacturers to find ways to automate processes and improve efficiency. 

The rise of low-code and no-code tools that enable non-technical - but digitalized - users to solve problems by themselves in a more agile and efficient manner has become a key driver of succes for manufacturers across all areas of the organization as they are able to adapt to these changes and take advantage of new technologies and decentralized decision making.

Challenge #4: Sustainability

Sustainable Business in the Age of Climate- Conscious Consumers

As the impacts of climate change become more pronounced, consumers are paying closer attention to their purchasing choices and the environmental impact they have. They are looking for products and brands that are committed to reducing their carbon footprint and promoting sustainability. This trend cuts across all industries, from food and clothing to transportation and energy.  

For businesses, this presents a unique opportunity. By demonstrating their commitment to sustainability, companies can set themselves apart from the competition and gain a unique advantage in the market. Not only is it a  responsibility to minimize their environmental impact, but it can also drive value through better supply chain management and increased efficiency. By reducing waste and improving operations, businesses can lower costs, improve their bottom line, and boost their brand reputation. 

Source: Download the IoT Signals Report directly from Microsoft here