We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • ::COVID-19 COVERAGE::
  • INDUSTRY PRESS ROOM
  • SUBMISSIONS
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
Home » Survey: manufacturers seek "smart factories"
Forward Thinking

Survey: manufacturers seek "smart factories"

August 3, 2017
Ben Ames
No Comments
Article Figures
Manufacturing's Five-Year Outlook

Manufacturing's Five-Year Outlook
Enlarge this image

Manufacturers are adopting wearable technology and the Internet of Things (IoT) at such a fast pace that the portion of companies operating "smart factories" could reach 64 percent by 2022, compared to just 43 percent today, according to a survey released Monday by mobile technology provider Zebra Technologies Corp.

Businesses are making the investment because they are driven by globalization, competition, and rising customer demand for more options and higher quality products, Lincolnshire, Ill.-based Zebra said.

In response, those businesses are creating fully connected manufacturing plants that could improve operational visibility throughout the supply chain, according to Zebra's "2017 Manufacturing Vision Study."

The San Francisco-based market research firm Peerless Insights conducted the survey for Zebra during the first quarter of 2017, collecting responses from 1,100 manufacturing decision makers in North America, Latin America, Europe, and the Asia Pacific region. Industry segments included in the survey included automotive, high tech, food and beverage, tobacco, and pharmaceuticals.

Connected factories could help companies improve efficiency and avoid errors as they transition from manual to digital work processes, Zebra said. The portion of respondents who said they still use pen and paper to track vital manufacturing steps is expected to drop from 62 percent in 2017 to 20 percent by 2022, the survey showed.

Another benefit of building connected factories could be improved supply chain visibility, as 63 percent of respondents said tracking raw materials and finished goods was a core focus of their effort, said James Hilton, Zebra's global principal for manufacturing, transportation, and logistics, in an interview.

Respondents plan to improve their tracking practices by applying technologies such as barcode scanning, radio frequency identification (RFID), and real-time location systems (RTLS), he said.

"In the push to get closer to the customer, businesses have to get more flexible and agile in their warehouse processes," Hilton said. "In the move to e-commerce, they will deal more directly with the end consumers themselves. Instead of shipping inventory just at the pallet level, they need to break down their orders to the piece count."

For example, consumer packaged goods (CPG) companies are accustomed to shipping pallet-level orders from their distribution centers to get inventory onto retail shelves in chain stores. But to compete with Amazon.com Inc., they now need to open up their websites to customers and start shipping out ones instead of pallets, he said.

That vision is triggering a dramatic transformation of the global manufacturing industry that will profoundly alter plant-floor operations as companies seek to connect every stage of the manufacturing process, including end-to-end supply chain fulfillment, the study found.

  • Related Articles

    Parcel and 3PL employers seek labor for winter peak push

    German logistics providers seek common software standard

    Survey: retailers drive demand for Internet of Things

Ben Ames is Editor at Large and a Senior Editor at Supply Chain Quarterly?s sister publication, DC Velocity.

Recent Articles by Ben Ames

FloorFound lands $10.5 million backing for its large-item returns network

CMA CGM to buy 9% stake in Air France-KLM and operate combined air freight fleet

GXO pairs with investment firm to back logistics tech startups

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Logistics pros warn of business impact from Russia-Ukraine war

  • Container prices continue to drop

  • How to resolve your inventory dilemma

  • Warehouse vacancy rates sink to 27-year low

  • Empty shipping containers stack up at U.S. port depots

Featured Video

Cccb7d13 710a 4473 8132 da8b6cc286f1

The Sportsman's Guide Case study: Increasing Accuracy & Productivity

Viewer Contributed
Thanks to the Lucas Warehouse Optimization Suite, The Sportsman's Guide has increased productivity, reduced training time, and experienced a boost in accuracy for both full-time staff and seasonal employees. Want to learn how Lucas can help your DC be more efficient, accurate, and safe while reducing labor costs?...

FEATURED WHITE PAPERS

  • Omnitracs One – Last Mile Solutions

  • The enterprise shipper's guide to building a smarter truckload RFP

  • Fixed vs. Flexible Automation: Which Option is Better for 3PLs?

  • Enhancing Relationships in Logistics through Data & Collaboration

View More

Subscribe to Supply Chain Quarterly

Get Your Subscription
  • SUBSCRIBE
  • E-NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2022. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing