Cost savings and productivity
With increasing pressure to produce quality products for lower costs, manufacturing companies must find ways to do more for less. New technologies such as robotics, data analytics powered by cloud platforms and AI-driven insights, as well as embedded sensors, can eliminate time-consuming procedures and improve efficiency.
Smart manufacturing in action
For one manufacturer, maintaining operational and logistical efficiency was critical but challenging, due to fluctuating production volumes and last-minute changes. By working with BDO and applying optimization techniques grounded in historical and daily input data, they implemented a more responsive scheduling system that improved productivity by increasing output, reducing waste while preserving quality.
Overcoming labour shortages
As the manufacturing sector comes to terms with the lack of skilled labour, hiring difficulties, and an aging workforce, advanced technologies can be critical in keeping operations thriving. By automating routine tasks, enhancing workforce skills, improving efficiencies, and even being an incentive that attracts young talent, Industry 4.0 enables manufacturers to achieve higher levels of productivity and competitiveness, even in the face of a diminished labour pool.
Smart manufacturing in action
Labour shortages forced our client to further streamline backroom operations, despite having recently invested in automated packaging. We advised them to move to cloud-based accounting and supported them through the entire transition. We also helped them integrate the cloud platform with their existing workflows and suppliers.
This new cloud-based system gave them better insights into their financial data and ensured staffing issues didn’t impact operations or client services. It also enabled more consistent, data-driven decision making.
New business models and revenue streams
The cost of doing business in Canada is high, due to wages, energy costs,rising inflation, regulatory compliance, and other factors. Canadian manufacturers who face difficulty in competitive pricing need to differentiate themselves through innovative products and services.
Industry 4.0 opens up new pathways to doing business, such as enabling the development of smart logistics solutions, leveraging predictive analytics to anticipate supply chain disruptions, and receiving real-time visibility into supply chain management. These advancements help manufacturers diversify their supply chains and build greater resilience.
Smart manufacturing in action
A client dealing with operational complexity due to a broad product line worked with BDO to use 80/20 analytics to identify the root of declining profitability. With a tailored dashboard in place, they uncovered new pricing opportunities and optimized their product and customer mix. This ultimately positioned the business for growth while increasing profits by $5 million.
Value enhancement
Over the next five to ten years, a large percentage of Canadian companies will come under new ownership, either through business succession or sale. Initiatives such as scheduling algorithms, simulation tools, and predictive maintenance can increase innovation and product quality, which in turn raises the intrinsic value of the company. As today’s business owners begin to look to the future, implementing the right digital tools now can help preserve their legacy.
Optimizing communication and data sharing
Traditional manufacturing has struggled with issues related to a lack of centralized management, operational silos, and fragmented data. As cloud computing, edge computing, plant, and corporate systems become more sophisticated, digital factory strategies are more accessible and affordable. Managers and plant operators are able to collaborate across multiple locations, consolidate and interpret data, and share information directly from their workstations.
Smart manufacturing in action
One of our clients struggled with siloed decision making, outdated reporting, and a heavy reliance on manual processes, which made analyzing scenarios expensive. We helped them identify relevant systems to invest in and created an integrated three-year roadmap, which drove efficiency and data-driven decision making within their operations. With the help of our scalable roadmap, they anticipate a tenfold return on their investment.
Environmental, social, and governance (ESG) strategy integration
Organizations in all industries are under increasing pressure to measure, address, and report on their ESG impacts. As automated processes gain momentum throughout factories and supply chains, they can, if used effectively, enable emerging monitoring, emissions tracking, and streamline ESG reporting, while also helping manufacturers align with evolving Canadian regulatory frameworks.
These benefits show that smart manufacturing isn’t just about adopting new technologies. It is about rethinking how manufacturers operate, make decisions, and create value. As Canadian manufacturers continue to navigate economic pressures, evolving regulations, and talent challenges, a smart approach to innovation and transformation will be key to long-term success.
How BDO can help
Need help identifying your next step? BDO’s manufacturing and digital advisory teams can help you build a scalable transformation strategy that meets your goals.
Fill out the form to speak to a member of our team and learn how we can support your business needs.