TRACE AND TRANSFORM: LEVERAGING DATA INSIGHT IN PROCESS MANUFACTURING

TABLE OF CONTENTSDIGITAL TRANSFORMATIONHOW IMPORTANT IS IT?

Source: IFS Digital Transformation Survey 2016

Global industry views on the importance and relevance of digitization vary between industries around the globe. It’s worth asking yourself what sort of impact you think it might have for your business.

Digital transformation is just a buzz word

Digital transformation will play a key role in my market in the

I need to know more about digital transformation

My company has a clear strategy for digital transformation

Strongly agree Somewhat agree Somewhat disagree Strongly disagree

30%

76%

59%

86%

AgreeTRANSPARENCY AND TRACEABILITY – THE RACE IS ON 3

JOINING THE DOTS: FROM VIABILITY TO PROFITABILITY 4

RESPONDING TO THE CHALLENGE: CONNECTED ASSETS AND REAL-TIME DATA 5

WHAT OUR CUSTOMERS SAY 6

WHAT’S NEXT FOR YOUR BUSINESS? 8

HOW IFS EXPERTISE CAN HELP 9

MEET OUR INDUSTRY EXPERT 9

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From food and beverage to chemical and paint businesses, the way process manufacturers use data is key to success and survival. On the one hand, consumers are looking for more insight into the products they buy and want easy access to information like allergens in food or ingredients in pharmaceutical products. Many are looking for proof of provenance to ensure they’re supporting quality products created without negative impact on human and animal welfare all along the supply chain.

Retailers in turn are demanding full traceability of the products they stock to minimize their liability in the event of manufacturing issues and recalls. Add to this a growing number of legislative obligations that call for fine-tuned record keeping and reporting, and the need for a deliberate approach toward quality management and tracking becomes clear.

What does this mean for process manufacturing? Simply – the way you use your data is now key to gaining and maintaining competitive advantage and managing reputation and risk.

TRANSPARENCY AND TRACEABILITY – THE RACE IS ON

of consumers are willing to pay more if buying from businesses committed to positive social and environmental practices

of new product launches ‘clean labelled’ in 2016Mintel 2017

42%

30%

We’re seeing a growing interest in ‘connected factories’ and ‘connected assets’ that share real-time data. In these environments, end-to-end supply chain management is improved and traceability is automated. At the same time, manual paper processes and system data entry are removed, along with the risks inherent in paper-based data capture and storage.

1 Product recall every 3 daysUSDA 2016

3

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Internal process efficiencies

Accelerating innovation

Cost savings

Competitive differentiation/advantage

Internal process efficiencies

TOP FIVE DRIVING FACTORS FOR DIGITAL TRANSFORMATION

Effective data capture, management and insight is essential to new product development, and not only to facilitate traceability and transparency. Achieving specific content values around ingredients like salt or fat, or realizing a vital chemical capability, and then establishing manufacturing cost effectiveness, all contribute to establishing whether a new product is viable.

The very nature of product development turns this into a challenging process. Often hundreds of ideas and iterations will deliver only one viable new product to market.

This kind of granular data capture and management is a challenge for traditional ERP products as too much data input is required. For some sectors, there are specific solutions to support new product development, but often this is managed via Excel spreadsheet or even paper notes.

JOINING THE DOTS: FROM VIABILITY TO PROFITABILITY

Insight from new research commissioned by IFS from Raconteur Custom Publishing, into the attitudes toward Digital Transformation in the manufacturing industry.

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Forward-looking businesses are putting processes and technology in place to extract maximum value and insight from their data. They know that accurate data collection and management is key to their future success and are selecting solutions that can evolve with the business climate.

To stay in the race, process manufacturers need to:

› Collect all information needed for quality management and traceability within an integrated system in real time, using shop floor data

› Select a solution that enables accurate costing of new product development initiatives and is quickly scalable for production without needing data re-input

› Set up quality assurance protocols with reporting capabilities from the start, including compliance and audit management, preventative and corrective actions, and non-conformance reporting

› Ensure quality assurance applies to suppliers too, and there are processes are in place to remediate or change suppliers if necessary

› Get ready to operationalize IoT data and grow the capability incrementally as experience with using the data increases

› When ready, connect the IoT environment to the product portfolio to process incoming requests and event data

RESPONDING TO THE CHALLENGE: CONNECTED ASSETS AND REAL-TIME DATA

58% of manufacturers say improving product quality is the most important objective they are pursuing by incorporating smart devices or embedding intelligence.1

Food traceability market to grow from $11.63 billion in 2016 to $16.09 billion by 2022Research and Markets 2017

63% of manufacturers have either implemented or are planning to integrate IoT technologies into their products.1

1 IJETSR, 2017: MPI Group’s IoT Study 2015 cited in Internet of Things (IoT) – Its Impact on Manufacturing Process, International Journal of Engineering Technology Science and Research

58% 63%

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WHAT OUR CUSTOMERS SAY“Our decision to purchase a new ERP system was driven by our aim to invest in efficiency, streamline our business processes and develop a platform to support future growth.’’

Managing Director, Agrovista

“For a food company […] traceability is critical. With IFS Applications, we’ve been able to reduce the time it takes us to do that sort of analysis dramatically.’’

Financial Director, Cambridge Manufacturing

“We have reduced the order lead time that we require from our customers by 30% as a result of the improved planning and operational capabilities that IFS Applications provides us.”

Director of Corporate Planning, Heaven Hill

“IFS Applications has transformed the face of our company by influencing the way we work in our firm. It has also contributed to the development of employee competence.’’

CEO, Hutmen S.A.

“We selected IFS Applications because it is a truly global solution that will meet the local needs of each of our plants while providing real-time visibility across all sites worldwide. We plan to use the new system to achieve a variety of corporate goals, including reduced inventory, more dynamic scheduling, improved manufacturing cost performance, shorter order-to-delivery times, better-informed decision making, and the ability to better evaluate and realize opportunities for growth and profitability.”

Dupon Filaments Americas

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WHAT OUR CUSTOMERS SAY“We compared best of breed, local and global ERP vendors, but no vendor could meet our requirements. IFS was the only completely integrated vendor that could meet our requirements in ERP with integrated enterprise asset management (EAM) and mobile capability.”

CIO, Shanghai Pepsi-Cola

“This IFS Applications implementation will allow us the ability to automate our lot traceability procedure within our manufacturing plant, automate real-time performance metrics, improve production scheduling efficiencies and reduce lead times to customers.”

Vice-President of Operations, WellPet

“IFS has been fantastic as a system in helping us to not only have that lean ability to satisfy the demand, but also with supply we reduce our stockholding of raw materials and packaging because we have better visibility of our complex supply chain. So you have a straight view of something that is complex, and you can achieve that through a good ERP system.”

Process Development Manager, Farrow & Ball

“As a result of our lean manufacturing initiative, we have reduced past-due orders by 80%, increased inventory turns by 20%, improved productivity by 20%, and increased quality by 60%. IFS gives us the technology platform we need to achieve this success in a mixed-mode environment.”

CIO, Willamette Valley Company

“IFS Applications gives us centralized control over our enterprise by integrating multiple manufacturing and warehouse operations in the U.S. and Canada. It also enables us to optimize our business processes and increase the efficiency of our production process, which involves multiple production lines.”

President & Founder, Nature’s Path Foods

“The additional flexibility within the system enables us to configure our own events and screen changes without the need for modifications, which is terrific.’’

IT Business Project Manager, Imerys Minerals

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Meeting changing market demands around traceability and preparing for a data-driven future both demand that you take control of your data, from capture and management through to analysis.

WHAT’S NEXT FOR YOUR BUSINESS?

Here are just a few of the ways our modular solutions can help:

INTEGRATED REPORTING AND TRACKING CAPABILITIES TO MANAGE NEW PRODUCT DEVELOPMENT

NEW PRODUCT MANUFACTURING AND COST VIABILITY REPORTING

MANUFACTURING DATA VISUALIZATIONS TO FACILITATE OPERATIONAL AND TACTICAL PLANNING

DATA MANAGEMENT AND REPORTING FOR ACCURATE END-TO-END TRACEABILITY AND QUALITY ASSURANCE

Process manufacturers that connect assets, production facilities and supply chains for real-time data sharing are already ahead in the quality control and traceability race. These connected environments allow for quick interrogation and reporting on any aspect of the operation during both product development and ongoing quality management. They are also primed to deliver IoT capabilities to their customers.

In an increasingly specialized business world, ad hoc or one-size-fits-all solutions are no longer an option. Deep industry expertise combined with software solutions implemented around business needs and culture are necessary to future proof organizations.

Working with experts like IFS provides you with the support you need to make sure your technology fits your business.

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HOW IFS EXPERTISE CAN HELP

MEET OUR INDUSTRY EXPERT

IFS is here to help you prepare for what’s next – from realizing the benefits of future-facing technologies like interpreting and managing big data to leveraging the opportunities of IoT.

IFS APPLICATIONS

IFS Applications is single, integrated application suite for global and demanding business. It provides best-in-class support for process manufacturing, discrete manufacturing and demanding manufacturing modes. With non-proprietary technology and a component-based service oriented architecture (SOA) built on open standards, it is a truly flexible and agile solution. Modules include:

IFS IOT BUSINESS CONNECTOR

Good strategies increase revenue, boost projects and enhance efficiency. Build your IoT strategy around the IFS IoT Business Connector and see how your manufacturing company’s operational data becomes business intelligence and how business processes become more efficient.

Industry experts can play a significant role in helping senior management plot a business strategy for digital transformation, both operationally and culturally, throughout the entire organization. Leveraging the right industry experts to speed digital transformation and realize competitive benefits has never been so important.

WHEREVER YOUR BUSINESS IS ON ITS DIGITAL TRANSFORMATION JOURNEY, WHY NOT SPEAK TO OUR EXPERT?

Colin Elkins has over 20 years’ experience in ERP software solutions for process industries. He has been a professional consultant and senior pre-sales consultant for much of this time and has extensive knowledge of the business issues and requirements faced by process manufacturers. This covers many industry sectors, specifically Food and Beverage, Chemicals, Pharmaceuticals and Mills and Metals. He is a key member of the IFS Product Directions Board and plays an instrumental role in the decisions regarding IFS product strategy.

Software will only take you so far. That is why at IFS we focus on selected industries to become true experts in how they operate. Our team can help you get it right the rst time with less risk, quicker time to solution and lower cost.

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COLIN ELKINSGlobal Industry Director for Process Manufacturing

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