Stronger demand for customization, rising customer expectations, and the complexity of the global supply chain all encourage manufacturers to find new, more innovative ways to compete.
Businesses use digital transformation to improve productivity and discover new ways to improve manufacturing and supply chain operations.
The Industrial Internet of Things (IIoT) is a method of achieving digital transformation in manufacturing. Industrial IoT uses a network of sensors to collect critical production data, which is then transformed into valuable insights about the efficiency of manufacturing operations by cloud software.
Cost cutting
Companies reduce operational costs and generate new revenue streams through improved asset and inventory management (resulting in lower inventory carrying costs and search times), reduced machine downtime, more agile operations, and more efficient energy use. Smart, connected products, for example, enable the shift from selling products to selling experiences – product usage and post-sale services. Reduced time to market. Product cycle time can be reduced by faster and more efficient manufacturing and supply chain operations.
Personalization
The mass customization process necessitates a significant increase in the variety of produced SKUs, which causes inventory to rise and diversify. Manufacturing operations become more complex as well.
Increased security
IIoT contributes to a safer workplace. When combined with wearable devices, IIoT allows for the monitoring of workers’ health and risky activities that can result in injuries. IIoT addresses safety issues in potentially hazardous environments in addition to ensuring worker safety. For example, in the oil and gas industry, IIoT is used to monitor gas leaks as it travels through the pipe network.
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