Digital Solutions to Challenges in Manufacturing Industry

Manufacturing is the process of putting together completed things from raw materials, parts, and components. We use factories to make all of the physical items we use. Manufacturers create value from raw materials by combining machines, equipment, and manpower. When iron, steel, and other materials are processed, they become a necessary car component that adds value. Following are some examples of manufacturing sectors:

  • Paper & Textile
  • Automotive
  • Steel & Metal
  • Food & Beverages
  • Power and Energy
  • Leather and allied product manufacturing
  • Coal, Petroleum, Rubber
  • Computer and electronics manufacturing
  • Furniture and plastic & Rubber
  • Coal & Petroleum

Aside from external obstacles such as inflation, economic downturn, higher tax rates, legislative changes, skilled labour shortages, industry competitiveness, and so on, manufacturers face a number of internal challenges. The following are some common manufacturing issues:

1.     Inventory Management

One of the most difficult difficulties in the industrial industry is inventory or stock management. Many manufacturers handle their inventory manually, which leads to mistakes, stock discrepancies, and hidden costs. Inadequate inventory control leads to the purchase of superfluous raw materials and components. To identify discrepancies in inventories in hand and in books, one should keep a close eye on them and conduct frequent inventory audits. Manual checking and auditing is a time-consuming and error-prone process.

These issues can be addressed with the help of good inventory management software. Auto stock updates, livestock valuation, and stock tracking at numerous warehouses/plants are all made easier with inventory management software. It will have the ability to set the Minimum Order Quantity (MoQ) for each stock type, auto-updates to recall low inventory/stock level products, auto PO creation, and PO approval, among other features.

2.     Forecasting Demand for Products:

The technique of projecting future demand for a product or service based on historical sales data is known as demand forecasting. Demand forecasting is a critical business activity for a company since it is linked to many essential decisions such as operational plans, financial planning, marketing and sales strategies, and risk assessment.

Many manufacturers struggle to foresee future demand for their products or services because they lack cutting-edge analytical techniques that may help them predict future demand and the number of products they can sell in the coming months or years. As a result, client happiness and product sales suffer.

Advanced tools and analytics that can provide thorough insights based on previous data and help anticipate future demand are required to mitigate poor demand forecasting. In today’s competitive industry, producers require a cloud-based demand forecasting solution. 

3.     Sales Leads Management:

It’s not easy to read a customer’s mind, keep up with market developments, and manage sales leads. Every sales lead is unique in terms of personality, preferences, and requirements, thus each one must be handled with care.

The prospective customer’s information must be gathered and his requirements must be understood. It’s critical to identify high-potential leads and follow up on them on a regular basis. Traditional methods of managing sales leads have grown outmoded as time has passed. A competent CRM system can help you manage sales leads by taking care of everything from gathering client email, phone numbers, and requirements to tracking calls and sorting data. It facilitates successful connection with customers and businesses, as well as the conversion of potential leads into sales orders.

4.     Operational Challenges:

Manufacturing has a lot of operational issues. Inadequate scheduling, understanding priorities, task assignment, poor document management, quality control, discovering deficiencies, extra staff, regular maintenance, and overhead cost monitoring are just a few examples of operational issues. The most important prerequisite for optimising productivity and customer satisfaction is smooth and optimised plant floor operations.

To meet these problems, businesses must look into solutions that can help them run more efficiently, save money, and provide better service. Companies can benefit from implementing IT systems that verify real-time tracking, provide predictive analytics, and provide remote monitoring. A comprehensive Factory Management Software will assist in timely and consistent communication between all departments, the consolidation of all data, and the provision of extensive analytics and reports to efficiently synchronise your manufacturing process.

5.   Increasing Sales and Revenue:

Everyone wants their firm to grow steadily and generate more revenue. This could be accomplished through increasing revenue and lowering overhead costs. However, increasing your ROI is not easy; the more you grow, the more difficult it becomes because it is dependent on a variety of circumstances such as economic slowdown, changing consumer behaviour, more marketing costs, and so on.

To address these challenges, improved techniques are needed, such as better marketing tools and a better understanding of customer behaviour, so that sales may be pushed when demand is higher in the market. One cannot ignore the power of social media in today’s world. Digital and social media marketing are two of the most successful and cost-effective ways to market your company and expand its global reach. Digital marketing is far less expensive than traditional marketing tactics, it is very flexible and easy to alter, and it allows you to quickly learn about your target market and consumers. It can be done by making a good SEO friendly website of your business with highly optimized content, running various campaigns on social media and search engines.


So here we have listed some of the challenges faced by manufacturing industries Automation and new technology are essential for achieving consistent development and competitiveness. We all know that gathering data and information and putting it to good use is the most effective tool a company can have. Smart ERP will undoubtedly assist you in achieving operational goals such as cost reduction, improved communication, increased efficiency and safety, supply chain management, and the ability to stay ahead in a competitive market by incorporating it into your organisation.