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How can Cloud solve the Top 5 challenges of Manufacturing Industry?
Over the years, cloud computing has been a defining factor in helping manufacturers achieve operational success. With nationwide or worldwide facilities, manufacturers have already realized cloud computing technology’s benefits. Manufacturers need to have branches nationwide or worldwide, and challenges related to facilities amount to huge expenditures that outweigh their profits. A critical factor that occupies their expenditure chart is ‘Downtime.’
The average cost of IT downtime across industries is $5,600 to $9,000 per minute. For small businesses specifically, it is $137 to $427 per minute, which impacts every operation.
- Over 90% of global enterprises report using cloud computing in some part of their business.
- 67% of manufacturing enterprises (17 countries) reported using a cloud implementation.
- With the indispensable usage of the cloud among manufacturing industries, it is estimated that by 2023, manufacturers will be almost 50% cloud-based software.
- 80% of manufacturing companies worldwide that adopted cloud computing have reported drastic operational improvements within the first few months of implementation.
- 64% of organizations reported that cloud solutions have helped with fluctuating customer demands.
- The cloud has brought a 22% rise in profitability for manufacturing industries worldwide.
- Manufacturers who have chosen the cloud have reduced their average downtime by 22 minutes a month.
The Top 5 Benefits of Cloud for Manufacturing companies
Cloud computing is helping manufacturers improve efficiency and will support them in being competitive for many years. Let us look at how the manufacturing sector benefits from cloud implementation.
Increase in Production Numbers
Production in large numbers is the core process of the manufacturing industry. It is an area that requires special attention and skills and can cause huge losses if mishandled. By and large, manufacturers were manually creating prototypes before the cloud revolution. This manual approach proved to be costly and time-consuming, diminishing efficiency dramatically.
With cloud technology, the cycle time from ideation through prototype design, production, and delivery has been substantially shortened. Manufacturers may now combine product manufacturing planning with supply chain data, thanks to cloud solutions’ practical data storage options. By comparing the vast amount of real-time data sets, manufacturers could arrive at a suitable product design to satisfy customers. Then, with a proper prototype, and automation in place, products could be developed and manufactured in a short time.
Cloud computing enables global access to real-time data. It allows the easy gathering of product metrics like inventory data, utilization of raw materials, overall efficiency, and the working efficiency of the machines. The improvement of monitoring metrics can enable manufacturers to track defects early and take the required actions to enhance product quality. This practice will help the firm to increase profits and reduce unnecessary losses.
American Leather Inc. regulated its metrics and improved performance by migrating to the Cloud with help of cloud experts at Eleviant. Check out how.
Compliance regulations that any organization follows will determine its brand value amongst customers. Food and pharmaceutical companies must use extreme caution in this regard. Depending on the sector, geographic area, and business function, there may be a variety of regulations. Cloud solution providers must comply with regulatory bodies and get certification in access control, data protection, cybersecurity, and other processes. Moving to Cloud helps manufacturers meet many mandatory data compliance requirements.
Cloud services are more secure and do not require as frequent updates as on-premises systems. The critical updates are managed at the back end so that the ongoing processes are not disrupted. A database is more secure in the cloud with APIs and is not exposed directly. These are just a few of the numerous benefits related to compliance.
Efficient Data Backup and Recovery with Cloud
Non-retrievable data lost during calamities or other reasons can incur huge losses to a business.
90% of companies fail within a year unless they can resume operations within five days following a disaster.
Data backup and disaster recovery strategies are critical for the Manufacturing industry. For example, the Supply chain is a highly complex process that includes operations, purchasing, distribution, inventory management, etc. All of them should be considered when developing disaster recovery strategies.
But, owing to the cloud, everything has become much more efficient and straightforward. In addition, cloud computing ensures immutable data backups by default, making it easier for businesses to implement disaster recovery plans.
Because of redundancy, cloud technology handles safely distributed backups of organizational data so that the data will survive even if one manufacturing site (or Cloud server location) goes down due to a natural calamity.
Elevate Stock Planning and Management
Manufacturing and stock maintenance are essential stages that must work together to ensure profitability. Cloud can improve the efficiency of stock inventory monitoring and help in continuous supply chain cycles. It helps by providing real-time supply chain updates. In addition, the cloud helps in gauging customer demands using different tools. It can also help share data with partners and suppliers and improve business efficiency.
Want to know more?
The above are a few processes of many in the manufacturing sector impacted by cloud computing. With close to 2 decades of experience digitally transforming global organizations and developing numerous cloud computing solutions for manufacturing companies across the USA, Eleviant can offer you expert advice on improving your processes and facilitating your cloud migration journey.
Contact our cloud experts for more details.