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.
  • 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
    • CSCMP EDGE 2022 Startup Alley
    • 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
    • CSCMP EDGE 2022 Startup Alley
    • 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

    C.H. Robinson picks former Ford and Amazon executive as next CEO

    Port of Los Angeles re-opens container terminals after work stoppages

    Hurricane season kicks off with uncertain weather models

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

    Report Abusive Comment

    Most Popular Articles

    • Report: Sagging freight stats show that trucking sector is returning to its historic mean

    • Survey: parcel delivery drivers are frustrated by using their own smartphones for work

    • Heavy transport across two continents

    • Survey: most Americans unaware that truckers face shortage of parking spaces

    • Supply chain executives not yet seeing expected results from technology investments

    Featured Video

    Household goods customs broker thumb

    Household Goods Customs Broker

    Viewer Contributed
    Household Goods Customs Broker :Gallagher Transport International is a highly experienced customs broker specializing in household goods, providing efficient and cost-effective customs clearance services while ensuring compliance with all necessary regulations. Our Services Include: Importing & Exporting...

    FEATURED WHITE PAPERS

    • Three layers of forklift safety: Promoting operating best practices

    • The Complete Guide to Automated Packaging

    • Five tips for parcel success in 2023

    • Guide to Pallet Rack Safety

    View More

    Subscribe to Supply Chain Quarterly

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

    Copyright ©2023. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing