© 2021 Auburn University
© 2021 Auburn University
There are two primary reasons to pursue digital manufacturing. One is that it can help companies make more money and the other is that manufacturers may not survive if they don’t. Technologies like the telephone, fax, and email became increasingly valuable as more companies embraced them and expected their trading partners to have the same capabilities. Digital manufacturing is rapidly following that same path, with growth rates already skyrocketing as more companies realize benefits from these new technologies.
Value Drivers of Digital Manufacturing
Digital manufacturing solutions like sensors, networked machines, data, and analytics can help companies increase profits in several ways.
Companies that adopt digital manufacturing early should realize two distinct competitive advantages. The first is being able to offer improved products and services earlier than competitors. Second, digital manufacturing will substantially change the way manufacturing industries work. Early digital manufacturing adopters will have a head start on adjusting their culture, infrastructure and offerings to best leverage digital manufacturing technologies. Provided a company continues to grow, they should be able to maintain that first-mover advantage.
Just as lean manufacturing and quality programs like ISO 9000 became more common expectations of suppliers, so too will digital manufacturing. These new technologies deliver benefits that extend to the entire supply chain by making it easier to exchange data, connect systems, and merge processes for even greater efficiencies. Buyers evaluating two candidate suppliers that are comparable in price, quality and delivery are likely to favor the one that is a more desirable supply chain partner – one that has embraced digital manufacturing.
© 2021 Auburn University