How Manufacturers Leverage Data and Analytics to Boost Productivity

The manufacturing industry is becoming more digital and data-centric, meaning companies can no longer rely on gut instinct and spreadsheets to drive performance and gain a competitive advantage. To stay ahead of the curve, manufacturers must harness the power of data and analytics to uncover inefficiencies, optimize processes and make informed decisions that drive productivity, profitability and competitiveness.

Many manufacturers have taken steps to streamline operations, eliminate waste and improve efficiency. Although the tangible aspects of production are easy to see and measure, other critical functions like inventory control, throughput and on-time delivery are more complex. This is where data analytics comes in.

Read: Automation in the Manufacturing Industry

The Power of Seeing the Invisible Work

Most manufacturers have made great strides in streamlining the visible parts of production. But what about the work you can’t see – the invisible productivity on the shop floor? Data and analytics can shine a light on your operations, highlighting bottlenecks, delays and inefficiencies that aren’t always obvious. It can help leadership see the work behind the scenes, such as processing, material planning and machine downtime so they can make improvements that impact the bottom line.

Data analytics empowers manufacturing leaders to challenge the status quo and make informed decisions that improve operations and customer experience. It’s no longer enough to rely on gut feelings or manual tracking; successful manufacturers now rely on real-time, reliable insights to stay competitive.

Unlock Improvements in Key Areas

Manufacturing operations generate a wealth of data every day, from machines on the shop floor to supply chain systems and customer orders. Data and analytics offer actional insights in several mission-critical ways:

• Increase throughput: Identify production slowdowns, idle machines and capacity constraints. Analytics help pinpoint where jobs are getting stuck and which resources are underutilized, enabling teams to improve flow and output.
• Inventory control: Excess inventory ties up cash and space, while shortages halt production. By analyzing consumption patterns, lead times and order history, manufacturers can better forecast demand and maintain optimal inventory levels.
• Boost on-time delivery: Late shipments damage customer relationships and erode trust. Analytic tools provide real-time visibility into scheduling, capacity and shipping logistics, allowing businesses to anticipate and avoid delays.

Move Beyond Manual Reporting

In many small-to-medium-sized businesses (SMBs), data gathering and reporting are still done manually or through a patchwork of spreadsheets and add-ons that sit outside the core enterprise resource planning (ERP) or material requirements planning (MSP) system. Although this might have worked in the past, these “DIY” approaches are now considered a major obstacle to growth and efficiency.

Modern manufacturing demands real-time, granular insights that are easy to access, interpret and act on. But here’s the hard truth: if there were quick and easy ways to get high-value analytics from your current tools, everyone would already be doing it. Instead, the reality is fragmented systems, inconsistent data entry and non-standard workflows that limit visibility and slow decision-making.

How to Make Data Work for You

It’s not enough to collect data – you need the right tools and strategy to turn insights into action. This often involves integrating data from multiple sources, using dashboards or business intelligence (BI) or working with a fractional CIO who can guide strategic decisions.

To start building a smarter, more data-driven manufacturing environment, start by evaluating how your ERP is being used and ask yourself:

• What manual work are we doing outside the ERP that could be brought into the system? Look for ways to centralize data within your ERP.
• Can third-party systems be integrated with our ERP? If some processes simply can’t live within your core system, integration is the next best option.
• Are all roles using the ERP system consistently? Standardizing processes ensures the data you collect is reliable and comparable across teams.
• Is our IT strategy capable of leading transformation? Technology should be driven by leadership. When IT is elevated to a strategic level, it becomes a driver of innovation and profitability.

Read: The Rise of Cloud Business Intelligence (BI) in Manufacturing

From Margins to Momentum

There’s a stark difference between manufacturers operating at 3% net margins and those thriving at 10% or more. Often, the latter group is working smarter by using data to automate, optimize and innovate. Instead of using technology like an electronic pen and paper, they use it to transform their operations.

By embracing data and analytics, manufacturers can unlock powerful opportunities for improvement across their organizations. They gain control over the unseen work, uncover hidden waste and empower their teams with the insights needed to make strategic, data-backed decisions.

Improve Your Operations with Thriveon

If you want to see how analytics and data can improve your operations, consider partnering with a technology expert like Thriveon. We help manufacturers use data to drive decisions that enhance productivity and profitability. Our proactive IT strategy gives you the systems and support you need to gain actionable insights.

Schedule a meeting today to see how we can help you harness the full potential of your data.