The SMAC Stack
A CSC COMPANY
Hitting Manufacturing
with the right technology
The SMAC Stack: Hitting Manufacturing with the Right Technology 2
A vulnerable sector
The manufacturing industry has been contracting for the past 5 months, according to the Institute for Supply
Management1. This is due, in part, to the persistently-strong US dollar. The sector remains vulnerable to international
market conditions, continuing competition from cheaper overseas manufacturers, and the possibility of the dollar
continuing to strengthen. It’s critical for manufacturing companies to take steps now to protect their businesses
against these external forces.
While manufacturing used to be insulated from the consumer market to some extent, the faster pace of business and
increasing consumer expectations are affecting manufacturers directly. Companies need to reduce the time it takes
to get products to market, without increasing costs. Consumers expect a fast turnaround but they aren’t willing to pay
a premium.
Transformation is essential
The entire supply chain ecosystem must therefore transform to meet these demands. To remain economically viable,
retailers need to sell more products faster, and at competitive prices. This puts pressure on distributors to shorten
delivery times and, in turn, on manufacturers to accelerate production cycles.
The ability of overseas manufacturers to do this, and keep costs low, has been a major stumbling block for American
companies. Lower wages and fewer compliance requirements make it easy for organizations in some countries to keep
costs staggeringly low without compromising on output. American manufacturers have had to look to innovation and
value-add to compete with these businesses.
This has been difficult in an industry that has traditionally been slow to embrace change. This is understandable given
these significant changes mean that manufacturers would need to re-tool and re-skill. The costs and time required to
do this effectively means many manufacturers are reluctant to commit to new techniques and technology too soon.
Yet paradoxically, manufacturing is often the bellwether for new processes, since it’s an industry in which waste and
errors carry a high cost.
1 https://www.instituteforsupplymanagement.org/ismreport/mfgrob.cfm
The SMAC Stack
Now, there is a range of new technology helping manufacturers
drive higher customer engagement and growth opportunities.
Early adopters have been able to increase efficiencies and
reduce costs through embracing the new customer-first culture.
Known as the SMAC Stack, these new technologies include
social, mobile, analytics, and cloud. It is an essential toolkit
for manufacturers looking to grow even as the manufacturing
industry struggles as a whole.
The SMAC Stack: Hitting Manufacturing with the Right Technology 4
Social
As consumers become better-educated about their product
choices and options, they have come to expect products on
demand. Manufacturers who can understand this demand
and respond to it efficiently are likely to lead the way. Social
media provides a valuable window into consumer preferences
and experiences, which savvy manufacturers can use to
change their processes, materials, and approaches.
Mobile
The increasing availability of mobile apps aimed at the
enterprise can help manufacturers gather the information
they need to make better decisions, faster. Company
representatives can use iPad and smartphone apps to
gather information about product performance in the field.
This information can then be used to decide whether certain
products should be discontinued, manufactured in larger
volumes, or changed to suit customer preferences.
Analytics
While manufacturing organizations are usually noted for
their ability to minimize waste through lean processes,
some are still subject to seasonal or other variations. This
can make it difficult to apply lean techniques with consistent
results. Advanced analytics provides the granular approach
manufacturers need to smooth out these fluctuations.
Gathering big data is just the first step. Analyzing it effectively
is where the value lies. The resulting insights can reveal
patterns, opportunities, and areas of concern much sooner
than would otherwise have been apparent. Manufacturers
can potentially identify process variables to significantly
increase yield without materially increasing costs. They can
also use information gathered from social media and other
sources to accurately predict consumer demand for particular
products, adjusting outputs appropriately.
If a manufacturer can predict these demand spikes more
accurately than its competitors, it may find itself the only
source for an in-demand product, potentially increasing
revenue and creating new business opportunities.
Cloud
Manufacturers need to be easy to work with for other
members of the supply chain. This often means responding
fast to demand and meeting short time-to-market schedules.
Cloud-based solutions are part of the answer.
Cloud-based systems are fast to roll out and don’t depend
on internal computing capabilities. This lets manufacturers
ramp up as needed. It also makes it easier for manufacturers
to: gather and analyze company-wide intelligence; use
collaboration platforms that enable Vendor Managed
Inventory (VMI); accelerate product development; manage
sales channels more effectively; automate customer service
for cost and time savings; and streamline key areas of
operation1.
1 Columbus, L. 10 Ways Cloud Computing is Revolutionising Manufacturing. Forbes/Tech
May 6 2013. http://www.forbes.com/sites/louiscolumbus/2013/05/06/ten-ways-cloud-com-
puting-is-revolutionizing-manufacturing/#14df641b52d8 (Accessed March 1
2016)
The SMAC Stack: Hitting Manufacturing with the Right Technology 5
ERP remains essential
In addition to new technologies, manufacturers should reconsider their use of established systems to maximize the
benefits. Enterprise resource planning (ERP) systems are essential for manufacturers.
ERP provides visibility, traceability, quality management, and planning capabilities that let manufacturers minimize
costs. Manufacturers looking to optimize capacity, respond to market demand, and manage supply chain dynamics
tend to benefit from ERP solutions.
If manufacturing organizations aren’t getting value from existing ERP implementations, it could be worth getting
professional advice. It may be time to upgrade or there may be additional features that aren’t being used to their full
potential.
How to hit the SMAC and invest in the right technology
So how do today’s manufacturers choose the right technology? There are a wide range of ERP solutions available,
ranging from monolithic ERP solutions to mid-market and enterprise ERP solutions for specific sectors of the
manufacturing industry. There is no one-size-fits-all solution and the choice isn’t just about price. It’s important
to look at a variety of parameters: depth of functionality, future development path, flexibility to adapt to changing
business models, integration with existing systems, cloud versus on premise as well as overall usability. All these
factors need to be considered if a manufacturer is to choose the right technology for them.
Most importantly, any technology decision should be made in consultation with the right business partner. UXC
Eclipse, a CSC Company is the global leader in delivering successful Microsoft ERP solutions using 100% Microsoft
technology. UXC Eclipse can offer pre-implementation services, business process mapping and advice on the best
technology roadmap for manufacturers as well as case studies that offer testament to their successful Microsoft
Dynamics ERP projects.
American manufacturers can compete with overseas competitors by carefully choosing their technology partner and
investing in the right mix of solutions. This must be undertaken within a manufacturing culture that has shifted to a
customer-first approach.
UXC Eclipse, a CSC Company
Today’s manufacturers are adopting new technologies that
directly align with and support their business strategies,
seeking competitive advantage through packaged ERP
systems such as Microsoft Dynamics ERP.
UXC Eclipse, a CSC Company is the Microsoft Dynamics
Gold Partner of choice for successful ERP and CRM
implementations and consulting services, supporting 2700
customers internationally. We understand that long-term
success is about more than software and technology –
it’s about understanding our customers. That’s why we
offer more to our customers; ISO9001 quality certified
methodologies to support project implementations, business
process management to define and map requirements,
business analytics to make sense of valuable data and
technical consulting to ensure every site is optimized either
on premise or in the cloud.
Our customer satisfaction and 97% customer retention
rates are legendary. Most importantly we understand our
customers’ business – that’s why we were awarded Microsoft
Dynamics Industry Partner 2015.
Contact UXC Eclipse to discuss your
project requirements today.
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20160522-v1
The SMAC Stack
There is a range of new technology helping manufacturers drive higher customer engagement and growth opportunities. Known as the SMAC Stack, these new technologies include social, mobile, analytics, and cloud.
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