November 9, 2021

Impact of RPA in Manufacturing Industry

The revolution of robotics is over the horizon as industries across different sectors have started to embrace this latest technology. RPA or Robotic Process Automation is considered one of the fastest-growing technologies that have the ability to capture data and manipulate applications by interpreting information, communicating with systems & triggering responses. With these capabilities, RPA is definitely helping businesses automate tedious and redundant tasks.

 

“According to Gartner, adopting RPA is not a matter of ‘if’ but ‘when’. It is critical for companies to start implementing it as soon as possible”.

According to stats, 53% of respondents are beginning to deploy RPA and the RPA industry is expected to be worth $3.1 billion in 2025. Notably, the manufacturing industry has also started utilizing RPA to its fullest for experiencing streamlined & error-free processes that result in better efficiency & productivity. RPA can be simply explained as a set of technology built-in algorithms designed to intelligently automate repetitive tasks and hence increase ROI, boost execution speed, and even improve the quality of business results

 

Given that robotic process automation (RPA) has the ability to produce an ROI in the range of 40% to 200%, embracing a more holistic approach would allow businesses to realize their full potential. At ZoftSolutions we have developed an implementation strategy & methodology that not only considers the challenge but also the best practices that would assist in building a complete business solution based on RPA.

 

Challenges Faced by Manufacturing Industry and How RPA can help

 

Purchase Order Creation:

Manufacturing companies have to deal with several vendors, on a regular basis, and creating purchase orders manually is a tedious and time taking task which also brings in the possibility of human errors. With RPA, purchase order creation can be completely automated and it can also help in verification of newly added products and check whether the other associated parameters are accurate and in sync across the systems.

Inventory Management:

A well-maintained inventory management is very important for the success of any manufacturing business. This includes procuring, storing and utilizing a company’s inventory which are the raw materials, components, and finished products. And during the whole process companies will have to deal with challenges like dead stock, high storage costs, stock-outs, lack of visibility in the supply chain, inefficient tracking, misplaced inventory items etc. But, with the use of RPA, the software bots can monitor inventory, generate real-time notifications and reorder products when levels go low below a threshold. In addition, RPA bots can determine optimal inventory levels based on previous needs and modify patterns in demand.

Administration and Reporting:

The process of manufacturing requires constant administration and a large number of reports on a regular basis. This entire process is time-consuming and can be a burden for the administration department. Since most of the basic level reports are rule-based and call for the same actions, implementing an RPA tool can be used to optimize this entire process. This in turn helps companies to take a decision to manage and run their business in an effective manner.

Vendor/Customer Support:

Right from shipment status to invoice and delivery details, support executives need to deal with a lot of requests both from customers and vendors. With the help of RPA, support queries can be automated thus reducing the response time significantly.

ERP Automation:

Integrating RPA in ERP could be the next stage in planning resources in manufacturing industries. Reports like inventory, account payable and receivable, pricing, etc. are automatically generated which can reduce the execution time and improve the business efficiency.

Integrated Systems:

At certain times, manufacturing industries have to deal with the different systems at multiple locations and as the data is handled manually, the entire process is slowed down. Implementing RPA can make incompatible systems integrate each other which further helps in reporting and real-time dashboard analytics for decision making.

Data Migration:

By implementing RPA for data migration processes, you can increase data migration speed, lower the cost, reduce human intervention and consequently human error, integrate data from multiple systems, RPA bots can handle multiple data formats, create log files, track the migration process, identify data inconsistencies and rectify the errors in real-time.

Managing Regulatory Compliance:

Most industries have important regulations that they need to comply with. This involves adherence to laws, policies, and regulations to maintain data integrity, data security, and safeguard the privacy of both employees and customers. The use of RPA tools like UiPath can bring value to compliance by closing all the business process coverage gaps left by ERP.

 

Concluding Thoughts:

The business model of the 21st century will continue to evolve digitally leveraging and emerging technologies. RPA is not a silver bullet for all problems, but it can significantly impact the way organizations execute their business functions.

Although RPA offers tremendous opportunities to bring about efficiency and significantly reduce cost, businesses need to be careful with the approach that is taken while implementing it. A combination of technology expertise, deep process knowledge, and domain knowledge is vital to ensuring the success of the RPA.

At ZoftSolutions, we understand the importance of digital technologies & therefore, work at implementing technology the right way to transform your business outcomes.

 

Take the first step into the world of robotics, with ZoftSolutions as your RPA partner!

Tags robotic process automation rpa