Supply chain disruption is a death knell to manufacturers that depend on the consistent, reliable movement of goods from production to final customers. Industry 4.0 technology allows for data-driven yield optimization and other benefits that help manufacturers reduce supply chain risks. Data-driven yield optimization can help your manufacturing firm improve resource efficiency, optimize operations, and identify process improvements.
What is Data-Driven Yield Optimization?
Yield optimization, a form of supply chain optimization, uses data to ensure the most efficient use of production resources and processes to achieve the highest revenue and profits. Manufacturing has become much more reliant on data-driven yield processes to reduce supply chain risks with the advent of advanced technologies such as artificial intelligence (AI) or supply chain analytics.
Historical data analysis is combined with AI to make agile decisions in production. In contrast to pre-planned production decisions, it is a more responsive method intended to adapt to changing demand in the supply chain—creating more efficient supply chain planning.
Problems Caused by Supply Chain Disruption
Supply chain disruption is any event through the channel that creates delays in delivery times. Such disruptions are problematic to all channel members since they ultimately impact the ability to get products to the final business buyer or consumer when demand is high.
Materials shortages, slow production processes, transportation delays, and poor logistics all contribute to supply chain disruption. Effective just-in-time inventory systems allow for the most efficient flow of goods throughout the channel to guard against bottlenecks and inefficiencies at any distribution stage.
Primary Benefits of Data-Driven Manufacturing
Real-time intelligence allows organizations to respond proactively to customer and supplier changes. By unifying data across the value chain and eliminating data silos, you can create a smart inventory, sense and respond to demand in real time, monitor supplier performance, and optimize transport and logistics.
By identifying the progress of goods throughout the distribution channel, manufacturers can quickly adjust production and resource utilization. Doing so reduces costs and is a safeguard against issues of over or under supply. The use of data-driven, agile systems is especially important in industries with high degrees of demand variability. It also allows for faster reaction times to seasonal fluctuations or natural events that impact demand. The following are specific benefits of data-driven yield optimization:
Inventory Optimization: Inventory on hand is expensive for manufacturers to manage. With a data-driven response model, you can minimize your available supply.
People and Resource Efficiency: Assign your people and use your equipment most efficiently based on production demands across your product portfolio.
Identify Process Improvements: Data analysis of your production processes helps identify possible improvement opportunities.
Improve Channel Collaboration: With greater supply chain visibility and optimized production efficiency, it is easier for manufacturers to collaborate and communicate with channel partners.
Better Transportation and Logistics Operations: It is much easier to manage transportation systems and coordinate logistics with intelligent yield optimization. Better logistics and reduced transportation costs further enhance profitability for manufacturers and their distribution channel partners.
TIBCO: Connected Intelligence for Manufacturers
The modern manufacturing center depends on automated intelligence to achieve the efficiencies required to compete. Reducing supply chain risks is vital to sustained success, and data-driven yield optimization is the best way to minimize that risk.
TIBCO delivers automated manufacturing intelligence to power top manufacturers, and it can help you secure your supply chains. Discover more about TIBCO Connected Intelligence for Manufacturing today.