How Digital Factory Serves to Improve Performance

Digital change in the industrial world is not a new topic, especially in the use of ERP solutions, through which critical planning, inventory management, or even logistics processes can be automated or simplified. Thanks to various new technologies, even end-to-end digitization is increasingly within reach. Complex intelligent sensors, artificial intelligence, large data pools, and robotics will lead to a new era of fully integrated factories. The integration of systems as well as data exchange with end devices is now easier than ever before and is already widely used. The comprehensive digital factory can be acceleration for a strong growth agenda, which in turn will enable productivity gains, increased financial and operational performance, production and market share, as well as increased control and visibility throughout the supply chain. Especially well-utilized automation potentials have a high share in this.

The orientation towards a digital factory, therefore, holds complex potentials for companies:  Man, machine and product communicate in real-time and across all functional areas. Via Digital Factory, ERP systems can be used even more efficiently and combined with standardized communication to merge data into useful and relevant information. There is no question that the current potential still depends to a large extent on the industry in which a company operates and on its current competitive position. In general, however, the potentials can be located in the following areas:

Shorter delivery times

Orders can be planned and scheduled faster. In addition, changing production lines is becoming increasingly simple and efficient, so that even single-piece production is possible in the long term. The result is shorter delivery times and the ability to quickly react to changing conditions.

Increased delivery reliability

Networking with the systems of customers and suppliers also holds great potential. For example, the automated, digital exchange can reduce the risk of delivery problems.

Increased efficiency

The synchronization of all company processes, the automation of many processes as well as centralized data acquisition lead to time savings. Individual desktops also make it possible to bring exactly the data and information on the screen that is needed for the respective work. This increases overall efficiency.

Increased quality

With increasing digitalization in the company, the number of errors is reduced. Instructions and manuals are stored in a central database or on a central server. Even the quality can be improved in a sustainable way, as measuring and checking standards becomes easier and easier.

Higher customer satisfaction

With the help of the Digital Factory, the customer's requirements can be met more and more individually: This applies, for example, to the implementation of specific product requirements and greater transparency in the ordering process. Delivery times can be determined more precisely and any additional information required, such as serial or lot data, quality data as well as technical data, can be exchanged automatically.

Higher employee satisfaction

Satisfied employees make a difference in the company and represent a considerable added value. Well-used technologies can support work steps and make work easier. The digital equipment in the company will also have a significant influence on the perceived attraction for future employees.

By connecting the functional areas, a permanent cost reduction, as well as an increase in quality, is possible. However: with new technological possibilities, methodical rethinking is required and already established processes must be rethought. A Digital Factory often requires a completely new set of rules for agility, new technology solutions, and cross-functional teams. With a suitable ERP provider, you are prepared for such developments, so that your chosen system can always be dynamically adapted to changing conditions and further developed.