Using Predictive Simulation to Respond to the Current Trends in Manufacturing

Salesforce recently released their “Trends in Manufacturing Report” which reveals insights from manufacturing leaders around the world about their future-ready strategy, the impact of the Covid-19 pandemic and more.

What’s clear is that the pandemic has permanently shifted some of the priorities and challenges that manufacturers are focused on, and that “future-ready” manufacturers are moving into this new normal, feeling much more prepared than their counterparts who have not positioned themselves with agility in mind for the upcoming decade.

Amongst those surveyed, 95% expect some changes from the pandemic to be permanent and 81% say they need both new approaches and new tools for accurate forecasting. Earlier this year we talked more about these key themes affecting business resiliency in a webinar led by Lanner’s Oliver Bird called “ Strategically Planning For The Future: Developing Resilient, Agile Processes Using Predictive Digital Twins.” In addition to demand and forecasting issues, we see our customers dealing with how to adapt their supply chain strategies, resource and asset volatility and changes in operating policies. Any one of these disruptions creates a challenge, but many companies are dealing with the consequences of several of these changes at once.

The Salesforce study also found that the top 3 things manufacturers are prioritizing over the next 24 months are:

- Increasing Process Efficiencies

- Demand planning

- Digital Transformation

Predictive simulation and digital twins are effective tools to address these pressing issues because they give you a risk-free way to analyse your manufacturing and supply chain processes. Simulation allows you to challenge your assumptions with evidence. Rather than rely on gut instinct to uncover and address your process inefficiencies, you can use a predictive simulation model of your processes to ask the “what-if” questions you need answers to in a virtual environment. Investment of both your time and money can be made with confidence because you’ll have tested your ideas first, before committing any resources.

Predictive simulation can also help you manage your demand and capacity planning, which is more complex than ever. In addition to the pandemic’s effect on customer demand and supply chain availability/volatility, ongoing government ‘green’ agendas, technology-driven business disruptors and new emerging competition create new challenges to managing demand. With so many new variables and complex correlations to consider, the pathway to success is harder to navigate than ever. A predictive digital twin of your operations can help you not just uncover process inefficiencies, but also answer large-scale strategic questions that affect your business's ability to hit its KPI’s.

Finally, as you begin or continue down your digital transformation roadmap, predictive simulation and digital twins should play a key role in underpinning your strategy and decisions. Investment in new automation and digital technology should be supported by evidence that can be provided by modeling your operations. This evidence-based approach will foster faster stakeholder buy-in, reduce speed to answer and allow for true innovation.

If you’d like to discuss your specific business challenges and how Lanner’s solutions might support your business resiliency planning, please contact us here.