Australia’s manufacturing and logistics sectors stand at the crossroads of innovation, adaptation, and sustainability. Yet, while there is immense opportunity to transform operations to improve efficiency and production, there are also a multitude of challenges that stand in the way. Whether it is a dire labour shortage or the turbulent economic climate, businesses must take a step back and focus on creating sustainable pathways for how operations are run.
Brett Newstead, director of sales ANZ for Zebra Technologies sheds light on current trends in the sectors and how technology is playing a role in addressing challenges and accelerating transformation.
Q1. Could you outline the current technological advancements that are influencing the manufacturing and logistics sectors in ANZ?
As recent data shows, many manufacturers are turning to emerging technologies to keep up with demand, meet rising costs and build supply chain resiliency. Manufacturing has been highlighted as one of four key industries where Generative AI is likely to have a transformative effect while driving employment and economic growth, according to a joint report by the Tech Council of Australia and Microsoft. With technology estimated to contribute between $2 billion and $5 billion to the manufacturing industry by 2030, it is clear that technological advancements are set to have vast impacts on these sectors in ANZ.
While there has been considerable hype surrounding generative AI and its capabilities, it is essential to note there have been a number of other technologies that have been crucial in shaping the manufacturing and logistics industries. For instance, radio-frequency identification (RFID) technology has changed the game for businesses across Australia seeking real-time visibility to keep up with customer demand across a single or multiple manufacturing sites.
Zebra customer and Australian manufacturer BE Switchcraft is a prime example of an organisation implementing emerging RFID technology to gain real-time visibility of its manufacturing process and financial data to help better fulfil its customers’ expectations. As a leading manufacturer of customised electrical switchboards for large building applications, adopting such technology has supported their rapid growth. It speaks volumes about the beneficial impacts that technology can have on the manufacturing industry.
Q2. The COVID-19 pandemic brought about significant disruptions to global supply chains. How have the manufacturing and logistics sectors in Australia and New Zealand adapted to the challenges presented by the pandemic? Are there any enduring changes in strategies or operations as a result?
Amidst the significant disruptions caused by the COVID-19 pandemic to global supply chains, there was a great reckoning with the need to build resilient supply chains for the future. Manufacturers who invested early in digitising their operations were agile enough to weather the pandemic and laggards are rapidly investing in technology plunge to keep up.
Zebra Technologies has played a pivotal role in fortifying this resilience by offering cutting-edge technologies such as IoT sensors and predictive analytics. These technologies empower manufacturing and logistics sectors to automate processes, make smarter inventory decisions, increase resilience and pave the way for lasting improvements in operational efficiency.
The enduring changes are centred around collecting more data to improve visibility, advanced analytics and empowering the workers that are critical to all manufacturing and logistics operations. Moreover, companies in both the manufacturing and logistics domains honed their inventory management strategies, harnessing real-time data collection solutions to adopt a more prudent approach to stock. These digital investments not only bolstered efficiency but also laid the groundwork for sustained operational enhancements.
Q3. The Skills shortage is an ongoing concern, one that is deeply impacting these industries. What role can technology play in mitigating the impacts of this?
Many companies, particularly in the manufacturing and logistics industries, are still struggling to recruit and retain workers. So, with the advances in automation and software development, it is important that organisations are successful in keeping existing workers while capitalising on the opportunities to optimise workflows and reduce reliance on manual labour, all without overburdening existing talent.
While this balance may be hard to achieve, it has been demonstrated that such technological advancements are being positively embraced by workers. On the one hand, workflows are now shifting from being executed by workers to intelligent automation, tasks that require walking are shifting to robotics solutions, tasks such as human visual inspections are shifting to computer vision and sensor technology such as RFID, and decision-making is shifting to machine learning and predictive analytics.
But this is not to say that human workers are being replaced. In fact, these technologies will be implemented to ensure increased productivity in workers and allow for more time to be reallocated to help drive better customer service. Further, workers in these industries are grateful for such intelligence tools as they make their jobs easier and their productivity levels better.
Ultimately, technological advances such as automated factories aim to enable people, autonomous mobile robots and advanced scanning and imaging technology to work in perfect harmony – not remove humans from the equation altogether.
Q4. Both Australia and New Zealand have been placing a strong emphasis on sustainability and environmental concerns. How is Zebra Technologies supporting organisations to achieve these goals?
With 52% of Australian consumers expressing that a company’s sustainability practices are an important consideration, it is important that both the manufacturing and logistics industries are quick to adapt and understand the direct link they have in enabling organisations across sectors to achieve sustainability goals.
Zebra Technologies is supporting the manufacturing and logistics sectors in improving their operations and reducing waste. We have introduced innovative solutions such as compostable print cartridges and eco-friendly labels to tackle waste. Our in-store devices prioritise sustainable packaging, utilise green battery technology, and promote device longevity. Zebra also champions a circular economy through refurbishment and recycling programmes.
Moreover, with its bespoke Circular Economy programme, Zebra is expected to recycle a million devices by 2024, reducing the demand for new devices and minimising waste. These initiatives are reflective of our commitment to emissions reduction and creating a circular economy, and I am optimistic that these efforts will play an important role in encouraging our partners and customers to follow suit.