Building Supply Chain Resilience with Industrial Automation
Covid-19 exposed startling supply chain vulnerabilities which continue today due to the current geopolitical climate, natural disasters and other global events that can make it difficult to source raw materials and spare parts and maintain a skilled labor force. While disruptions are inevitable, operational fragility is not. This blog will explore how smart manufacturers are leveraging automation to succeed despite supply chain volatility.
Understanding Supply Chain Resilience
On the plant floor, supply chain resilience is the capacity to anticipate, prepare for, withstand and recover from disruptions by building agility and flexibility into operations through optimization of labor availability, production schedules and overall equipment effectiveness (OEE).
Building supply chain resilience relies on three core principles, known as the “Three Cs” of supply chain management: Communication, Coordination and Collaboration.
Communication encourages an exchange of information between suppliers, manufacturers and customers to prevent delays and reduce errors. Coordination synchronizes raw material delivery, production schedules and transportation times to ensure delays are addressed proactively. Collaboration promotes working with all departments to get the job done versus operating in silos.
Developing open communication, coordinating activities and collaborating on goals contributes to supply chain resilience because it fosters an environment where your business can proactively identify weak points and build contingency plans.
The benefits of building a resilient supply chain include:
● Improved ability to manage demand volatility.
● Reduced impact from labor shortages.
● Faster recovery from disruptions.
● Enhanced competitive advantage.
How Automation Directly Strengthens Your Supply Chain
Creating a resilient supply chain requires manufacturers to proactively manage labor availability, production schedules and equipment uptime. Automation empowers manufacturers to optimize these essential functions by addressing key vulnerabilities such as labor shortages, raw material and spare part delays and slow production processes.
Automation technologies that strengthen manufacturing supply chains include:
Physical Automation/Robotics: Using industrial robots and collaborative robots for tasks such as machine tending, pick and place, assembly, inspection and palletizing promotes efficient, accurate and continuous throughput, alleviates labor shortages, reduces waste and increases quality.
An example of how physical automation technologies can bolster supply chain resilience might be using a pick and place robot to sort and pack products when skilled labor is not available to maintain productivity and fulfill orders according to schedule.
Cognitive Automation/Data Analytics and AI: Using data collected from sensors placed on critical equipment, cognitive automation technologies like data analytics and Artificial Intelligence (AI) help manufacturers predict maintenance issues, identify production inefficiencies and forecast demand based on historical trends. This allows you to ensure machine availability, address throughput issues and be aware of raw material needs in advance, so your business is prepared for the future, despite potential supply chain disruptions.
Cognitive automation technologies might use data analytics to predict equipment failure, alerting maintenance teams in advance so they have time to source hard-to-find spare parts and make repairs before equipment fails, encouraging uptime to meet production targets.
Leveraging IoT and AI for a Future-Proof Operation
The Internet of Things (IoT) has ushered in an era where manufacturers can use data collected by IoT-enabled sensors placed on critical equipment to gain visibility into machine health and production processes.
Data analytics digest and analyze the massive amounts of data collected by IoT-enabled sensors and present it to operations and maintenance staff in an understandable and actionable format so they can make informed business decisions based on real-time information to keep operations running.
With the addition of machine learning and AI, data analytics can be taken a step further because cognitive automation solutions can predict patterns of machine behavior, forecast demand fluctuations and examine trends in equipment usage. Not only does this alert operators and maintenance technicians to potential issues, but cognitive automation also looks at how these situations were managed in the past and uses that historical data to provide suggested actions. This allows you to proactively plan for the future, rather than react as events occur.
For example, IoT sensors can detect machine anomalies, such as high temperatures or vibrations, that indicate a potential breakdown. Machine learning and AI capabilities can present technicians with suggestions for addressing the problem based on historical solutions to the issue. Using data-driven recommendations reduces troubleshooting time and guides less experienced staff through the necessary steps. This minimizes the time it takes to find and fix a problem and helps you avoid costly downtime so your business meets its production goals.
The combination of data analytics and machine learning/AI can also be used to predict an increase in demand, evaluate equipment effectiveness and make data-driven recommendations regarding raw material delivery, machine availability and production schedules so you are prepared to handle the uptick in demand well in advance.
Automation, data analytics and AI will not replace supply chain management. Rather these technologies serve as tools that provide efficiency, predictive insights and data-driven recommendations to encourage smarter, faster decision making so that manufacturers are prepared and flexible enough to handle supply chain volatility that would otherwise disrupt production.
A Roadmap to Applying Automation to Increase Supply Chain Resilience
Smart manufacturers are using automation to build flexibility and agility into their processes so they are prepared for supply chain volatility and other disruptions. This practical, four-step guide serves as a roadmap for applying industrial automation to create supply chain resilience.
Step 1: Evaluate and Identify
Start by analyzing your current workflow to find the biggest bottlenecks and most vulnerable processes. Where do errors, delays or safety risks most often occur? Answering these questions will help you see where automation can best enhance efficiency and offset labor shortages.
Step 2: Prioritize High-Impact Tasks
Your first automation projects should offer a clear and quick return on investment. Repetitive, physically demanding tasks like palletizing, machine tending and material handling provide increased efficiency right away, making them great starting points.
Step 3: Integrate Systems for Full Visibility
Make certain your new automated equipment can communicate with existing hardware and software to create a seamless flow of data across the business. This will ensure communication, coordination and collaboration – the Three Cs of supply chain resilience.
Step 4: Partner with an Automation Expert
Don’t go it alone. Work with a partner who can help you design, integrate and support the right solutions for your specific requirements.
Build Supply Chain Resilience with JHFOSTER
JHFOSTER is more than a distributor. We are a robotics partner, automation provider and compressed air expert. JHFOSTER experts evaluate, design, integrate and support your projects for a holistic approach aimed at helping you work faster, smarter and more efficiently. Contact a JHFOSTER automation expert to strengthen your supply chain today so your business is prepared for tomorrow.
