Making a Case for Digitalisation

In modern manufacturing, the digital transformation of production processes is a key driver for global economic growth. Implementing a digital transformation strategy across manufacturing operations can have an impact that goes beyond just production capabilities or supply chain operations; companies are now aware of the wider impact it can have in terms of meeting cost reduction and sustainability goals.

Within the current context, the impact of the pandemic has only increased the necessity of a digital transformation. This in turn has boosted adoption rates for digital solutions, building upon established trends from several years ago and accelerating their implementation. Now, manufacturers are taking advantage of the opportunities digital solutions offer for increasing the control of production and flexibility across an entire value chain.

Digitalisation Means Better Data

A digital transformation brings with it a wealth of new data. This data brings visibility to ongoing inefficiencies and therefore increases your ability to target them with greater accuracy. It eventually causes a flywheel effect, where the more a company adopts digital solutions, the more granular the data generated and the greater the impact it can have on resolving inefficiencies. This in turn can help identify opportunities to reduce waste, limit carbon emissions and generate more cost-effective production

Within these emerging data sets, captured through digitalisation, it’s important to integrate collected data with processes to generate specific actions. This can be done to play to the specific needs of a company, be that having fewer rejected products, limiting material waste, or even streamlining production process to improve sustainability.

For us at Tetra Pak, there is a focus on keeping the consumption of all raw materials and energy down to a minimum, during both the manufacturing process and distribution through digital processes, for which data can help uncover relevant solutions. This data also helps us with future planning. By allowing us to make more accurate prediction over different time horizons, it enables us to make clear data-driven decisions, as well as adapt in real time in the face of unexpected situations.

Better Data Means Enhanced Productivity

With the data generated through digitalisation, productivity via increased efficiency becomes more impactful. This is something we’ve observed first-hand at Tetra Pak.

In our production processes, when using large amounts of raw material, mistakes can be expensive, making accuracy paramount. These processes need to be designed to reliably create the right product repeatedly, otherwise there will be a significant cost impact during an already capital-heavy area of the company.

By digitalising the process, the manufacturer can gain control of this process, drastically reducing possible risks and therefore limiting the chance of a mistake occurring. The data generated can also help to accelerate manufacturing processes, leading to a greater throughput, while also reducing rejects. With this approach, companies no longer have to compromise on choosing between speed, efficiency, and product safety, instead they can have them all within one digitalised solution.

Another way a digital transformation can be effective is with the use of digital twin technology. This helps manufacturers speed up their time to market and enables massive iteration of potential paths forward with consideration of a wide range of variables. This facilitates efficiency at scale across the entire value chain, helping improve productivity in areas beyond just production.

Enhanced Productivity Means Greater Efficiency and Sustainability

This improvement in productivity in turns leads to efficiency gains and more sustainable processes. Sustainability is a trend that is set to stay for businesses and consumers alike. Modern consumers are now actively willing to pay more for products that match their environmental ideals. It is their purchasing power and consumer mindset that is actively encouraging the acceleration of digital transformation for many businesses, including everything from sourcing and processes to distribution.

That said, manufacturers may see challenges in aligning their sustainability ideals with the reality of their operations. As regulatory standards around carbon reduction and recycling tighten, digitalisation can assist in making sustainability and cost-reduction mutually complementary goals. It’s a case of designing your processes to be as economical with resources as possible and embracing the circular economy as a core pillar of your operational processes and equipment design. When implemented in this manner, efficiency benefits will quickly follow.

Our own digital transformation is an example of this in action. Tetra Pak designed equipment that can reduce off- product by 75%, reducing the energy used per unit of a product created by 9%, all while still managing to increase throughput by 9%.

It cannot be overstated that the companies who pursue the joint objectives of bringing productivity and sustainability in harmony stand to reap the biggest rewards over the next decade.