Digital transformation within the context of the manufacturing industry takes its own form. It includes the integration of digital technology into virtually all areas of manufacturing. While it does involve automating existing processes to increase efficiency and reduce human error, it goes well beyond by radically altering legacy manufacturing operations and reimagining the business model.
Digital transformation integrates smart technologies and other digital technologies. Using artificial intelligence and machine learning in manufacturing can provide manufacturing companies with valuable insight that humans can’t, and Internet of Things (IoT) and robotics serve to further transform manufacturing processes and new and novel ways.
One key component of digital transformation is an emphasis on relationships, and overall EDI helps strengthen relationships companies have not only with customers but also with the trading partners they interact with on a daily basis.
The Manufacturing Landscape in the Digital Age
Current trends in manufacturing technology span the gamut from automation and advanced robotics to utilizing big data analytics and implementing machine learning and artificial intelligence.
IoT connects machines across manufacturing facilities. Companies can then use sensors to gather information about equipment. The valuable data that’s collected can be used to better determine needed maintenance on machines, often before human senses are able to predict or realize there are potential issues.
Automation and robotics are a current trend in manufacturing with very practical applications. Robots can perform repetitive tasks freeing up valuable time for the humans they work alongside. Robots are also able to perform dangerous tasks, so humans don’t have to.
Initial upfront costs can be a barrier to companies wanting to adopt new manufacturing technologies. Additionally, their workforce might not have the needed skills to implement and maintain the technologies either.
Role of EDI in Digital Transformation
The importance of EDI in manufacturing cannot be overstated. EDI gives manufacturing companies a competitive advantage allowing them to keep pace with what their customers’ needs. EDI allows more efficient exchange of critical business information between a company and their trading partners at a lower cost. The speed at which EDI transactions occur allows such a degree of visibility into the supply chain, which ends up greatly improving the supply chain cycle.
Because EDI transactions can occur in as little as a few seconds, companies can respond to customers more quickly and order processing time is greatly reduced. Accuracy improves as a result of EDIs core emphasis on automation.
The Impact of EDI on Supply Chain Management
EDI plays an integral role in optimizing supply chain operations. EDI automates documentation handling, which results in fewer errors and quicker information transfer. This increased efficiency and improved communication helps to establish the foundation for supply chain optimization.
The best way to see this in action is to look at case studies. One specific Remedi case study highlights how EDI integration improved supply chain efficiency. The Remedi Framework solution coupled with a migration to IBM Sterling B2B Integrator enabled a supplier to a famous fast-food franchise to achieve accelerated order processing times and reduced delivery errors. The client not only achieved document visibility and traceability, but ultimately improved profitability.
Integrating EDI with Emerging Technologies
EDI integrates with other digital technologies including IoT, cloud computing, and AI. There are numerous benefits such integrations have for manufacturing processes.
Cloud computing platforms can process large volumes of EDI transactions at a lower cost. EDI transaction data paired with information gathered from IoT devices can provide a complete view of operations by allowing real-time monitoring of inventory levels, shipping conditions, and the current condition of equipment on the shopfloor. AI can identify patterns in EDI transaction data that humans simply can’t. This insight can be used to inform decision-making processes.
When EDI is integrated with digital technologies, and specifically smart technologies, manufacturing companies benefit from an improved supply chain process. Companies can also more easily meet sustainability goals due to reduced waste and energy consumption that is reached through optimizations in logistics.
Navigating the Migration to Advanced EDI Solutions
Migrating to advanced EDI solutions presents numerous challenges. Migrating and properly integrating existing data into the targeted EDI solution requires careful planning. It’s a difficult process that varies in complexity depending on the volume of historical data that needs to be migrated and the potential conversions that need to occur if data formats differ between the origin and target systems.
Also, the learning curve required can often be daunting; employees will need new training on the new system, and they may be reluctant as they transition away from the legacy system to which they’re accustomed.
Overcoming Challenges in EDI Implementation
It’s important to consider common hurdles in implementing EDI solutions in manufacturing. Whatever EDI solution your organization chooses, it’s important that it integrates with existing enterprise systems such as Enterprise Resource Planning (ERP) and Material Requirements Planning (MRP) systems. Expert EDI service providers can help ensure a successful implementation. Another obstacle is meeting and managing trading partner requirements. Moreover, data quality needs to be maintained, and companies need to actively ensure they can meet regulatory complex requirements.
Future Trends: EDI and the Next Wave of Manufacturing Innovations
Manufacturing technology is trending toward smart factories enabled by advancements in IoT, AI, and machine learning. Furthermore, digital supply chains powered by blockchain technology will improve supply chain visibility in the coming decades. Both augmented and virtual reality will be used for both training and maintenance. Advancements in 3D printing technology will facilitate on-demand manufacturing.
Depending on the technology, EDI will evolve in specific ways to support these future trends in manufacturing technology. For example, EDI will be integrated with data produced by IoT devices. EDI will be more scalable to accommodate the increased needs brought about developments in manufacturing technology.
Conclusion
Digital transformation in manufacturing involves more than just automation. Leveraging smart technologies including IoT, AI, and machine learning ensures exceptional progress toward a more complete digital transformation. However, coupling those advancements with EDI radically transforms an integral component of manufacturing companies: the supply chain process.
It’s much easier to embrace digital transformation when you have the right EDI integration and migration partner. Consult with Remedi for your EDI integration and migration needs.
Seamless integration requires expert insight.
