Increasing cloud, but clear skies for manufacturers – by Warren Zietsman

Australian manufacturing has the opportunity to restructure, grow and prosper if it can harness the power of data to power up operations. Utilising the cloud opens the way for increased efficiency, reduced costs, and improved productivity, writes Warren Zietsman.

The year is 1948. Australia is three years into its post-great war recovery, and a local motor company by the name of General Motors-Holden releases the first all-Australian motor vehicle.

The 48-125, known as the FX, has 18,000 pre-orders sight unseen – and the company struggles to keep up with the unprecedented demand.

In many ways, the Holden motor vehicle is a microcosm of the peaks and troughs of the domestic manufacturing sector – an icon of its time that succumbed to the pressures of an increasingly competitive global market and rising operational costs that rendered it a relic of a bygone era.

But in 2023, we sit at the edge of something greater, an opportunity to redirect our path – rapid digitalisation has evolved every aspect of our lives, and this has never been clearer than in manufacturing.

Embracing the power adoption of technology, particularly cloud data systems, holds the key to alleviating operational pressures and revitalising the manufacturing landscape in Australia.

But how will technology help Australian manufacturers get back to the summit?

Operational efficiency

Manufacturing once held – and can still hold – a vital role in the Australian economy. It provides employment opportunities, drives innovation, and contributes to the country’s overall prosperity.

However, the sector has struggled to keep pace with the global manufacturing giants. A recent report by the Australian Senate indicated that Australia is currently operating at 72 per cent manufacturing self-sufficiency, a global low compared to other nations.

The need for increased efficiency, reduced costs, and improved productivity has become more pressing than ever before. This is where technology, with cloud data systems at the forefront, steps in to reinvigorate the revival of Australian manufacturing.

Cloud data systems, powered by the seamless integration of cloud computing, big data analytics, and the Internet of Things (IoT), offer a range of benefits to manufacturers.

These systems provide real-time access to critical data, enabling manufacturers to make informed decisions, optimise production processes, and enhance overall operational efficiency.

By leveraging cloud data systems, Australian manufacturers can gain a competitive edge by streamlining their operations and maximising resource utilisation.

One of the primary advantages of cloud data systems is their ability to collect, store, and analyse vast amounts of data generated by various manufacturing processes.

And it’s remotely accessible. By harnessing the power of big data analytics, manufacturers can identify patterns, trends, and anomalies that were previously hidden from view.

This newfound insight allows for proactive maintenance, efficient inventory management, and the optimisation of supply chain logistics. Moreover, real-time data monitoring enables manufacturers to respond swiftly to changes in demand, reducing lead times and increasing customer satisfaction.

One team for all

Cloud data systems also facilitate seamless collaboration and communication across the entire manufacturing ecosystem.

Traditionally, supply chains have been plagued by inefficiencies and information silos. Cloud-based platforms enable manufacturers to connect and share data with suppliers, distributors, and customers in real-time.

IDC predicts that manufacturers that are facing increased disruption will digitally transform and accelerate sustainable innovation to improve supply chain operations from concept to commerce, increasing revenue by 20 per cent in 2025.

This connectivity fosters transparency, promotes collaboration, and enhances traceability throughout the value chain. Manufacturers can proactively address supply chain disruptions, identify bottlenecks, and implement agile production strategies.

Mitigating the skills shortage

Cloud data systems enable Australian manufacturers to leverage emerging technologies like artificial intelligence (AI), machine learning (ML), and robotics.

These technologies have the potential to automate mundane tasks, improve quality control, and enhance the overall safety of manufacturing operations.

By integrating cloud data systems with AI-powered analytics and robotics, manufacturers can achieve higher levels of precision, reduce human error, and increase productivity.

While the adoption of cloud data systems brings forth a promising future for Australian manufacturing, it is not without its challenges.

The implementation of these systems requires significant investments in infrastructure, cybersecurity measures, and upskilling the existing workforce. However, the long-term benefits outweigh the initial costs, as the manufacturing sector becomes more agile, resilient, and competitive on the global stage.

Embracing the future

In manufacturing, embracing the power of technology separates the leaders from the laggards.

By leveraging artificial intelligence, machine learning and real-time data from IoT-connected assets, workers can focus on higher-value work and increase productivity.

But it takes a cultural shift and company-wide buy-in to make it a reality.

Warren Zietsman is the Managing Director for IFS Australia and New Zealand. He is responsible for the delivery of modern enterprise systems that create value for IFS’s customers, developing a local business strategy, building its customer base, and expanding the company’s network of quality resellers. With more than 24 years’ experience in the business sector, he is highly adept at building and leading high-growth companies and teams, and developing new markets across APAC, AFRICA and EMEA.

Picture: Warren Zietsman