Here’s a piece of linguistic trivia: did you know that the word “manufacturing” comes from the Latin for “making things by hand”? That’s a far cry from today’s reality — Latin has gone out of use a long time ago, and mass manual production will inevitably become a thing of the past, too.
Modern factories are steadily becoming increasingly automated with time- and resource-efficient machines delegated to assembly line duties while human staff oversees the process. The industrial automation market is projected to grow at over 8% each year globally, and the number of industrial robots increases by 14% per year.
But there’s more to manufacturing than just factory-floor tasks. Supply chain management, customer engagement, inventory planning, sales and order processing… These non-production workflows are just as critical for the business as the production itself. So, why not apply the same effective, automated approach to them?
That’s where Robotic Process Automation (RPA) steps in. In this blog post, we’ll investigate the main operational challenges in manufacturing, the industry-specific uses of RPA, and the benefits of implementing it for all stakeholders. All that to get you started on the road towards full automation of your manufacturing business.
The challenges in modern manufacturing
Recent years have been tough: supply chain disruptions, pandemic, great resignation, demographic shifts, and inflation have all taken a heavy toll on many industries, including manufacturing. At the same time, there are also the lifelong challenges of day-to-day operations that all businesses have to face. What are they?
Staff shortages — 54% of manufacturers named hiring skilled employees as the top post-pandemic recruitment challenge. Still, it’s hardly the only one: other major hurdles include stiff competition for talent with other businesses or the industry’s negative image among younger potential hires.
Supply chain inefficiencies — Between congestion issues, container shortages, increasing chain complexity, growing costs, and dependence on a single source for vital materials, global supply lines were already stretched thin before 2020. The system needed very little to collapse, and the pandemic was just the final straw.
High operational costs — In the case of some business expenses, the figures have gone through the roof. Shipping costs have increased significantly in recent years, and partners are also affected, which makes them likely to charge more for parts and resources critical to your business.
Efficient inventory management — Striking the balance between under and overstocking, shifting demand, tracking inconsistencies, limited visibility, and tons of paperwork—due to these factors, optimal inventory management is a never-ending effort. Supply chain disruptions don’t make it any easier, either.
Ensuring customer satisfaction — 81% of industrial customers claim that a positive experience encourages another purchase. That number alone should make manufacturing executives realize that excellent customer service in the sector is no longer a nice bonus but a necessity.
Increasing productivity — Manufacturing businesses that strive to remain competitive must make the most out of their potential. A significant part of this challenge lies in identifying improvements beyond pure production output: better planning, higher visibility, or removing siloed data.
If all that sounds dire, the good news is that you can address all these difficulties with RPA implementation.
What processes to automate?
First, let’s make one thing clear: RPA is by no means a silver bullet for every single challenge troubling your business because no solution is. However, many problematic processes in manufacturing meet the criteria of a perfect automation candidate.
Now, what exactly are the best tasks to automate with RPA in manufacturing?
Supply chain management
No surprises here — supply chain management involves a lot of smaller, consecutive, and repeating tasks which are easy to automate and can bring a quick ROI. One of the significant advantages of RPA-driven SCM is enhanced visibility. Shipments are tracked in real-time, and status updates are automatically sent across all supply chain links.
Bill of materials
A bill of materials (BOM) is a go-to reference document in manufacturing that lists all raw materials, assemblies, and parts needed to create the end product. RPA makes BOM generation simpler and more accurate, especially when combined with OCR.
Inventory management
A well-programmed RPA system can analyze storage data, predict demand, monitor inventory levels 24/7, and automatically trigger resupply.
Order processing
RPA assists with vendor selection, order handling, ERP updates, payment tracking, approvals, and invoice processing.
Data operations
Despite automation growth, engineers still spend a significant portion of their time retrieving data manually. RPA integrates with ERP, WMS, and CRM systems to automate data workflows.
Customer service
RPA enables self-service, automated responses, and faster issue resolution by pulling relevant data instantly.
RPA: Benefits for everyone
Manufacturers
RPA reduces costs, eliminates errors, improves efficiency, and scales without additional hiring.
Business partners
Faster order processing, fewer errors, and improved reliability.
Customers
Better tracking, faster service, consistent availability, and improved support experience.
The bottom line
Precision, efficiency, and scalability — these three qualities define a successful manufacturer. RPA delivers all three.
Are you still wondering if RPA will work for your manufacturing business?
Drop us a line or schedule a call.
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