Centre for Advanced Manufacturing and Supply Chains

The factory as a revenue-generator

Production and supply-chain processes can no longer be regarded simply as practices that need to be cost-efficient. NTT DATA believes the factory is a source of revenue, not a cost center, for the following reasons:

• In a volatile market, flexibility is key: an NTT DATA survey found that 55% of organizations say demand fluctuations affect their ability to fulfill customer orders
• Increased demand for customized products: research suggests that consumers are more likely to purchase brands that offer personalization
• Incremental complexity associated with product servitization: this trend positions manufacturing as a key engine of industrial innovation

The World Economic Forum's Centre for Advanced Manufacturing and Supply Chains is shaping the future of supply-chain management and driving the manufacturing industry toward its net-zero goals. NTT DATA is participating in three of the Centre's nine key initiatives: The Global Lighthouse Network, Circular Transformation of Industries and The Next Frontier of Operations.

Global Lighthouse Network

The Global Lighthouse Network is a community of leaders that explore ways to use Industry 4.0 technologies to transform factories, value chains and business models. They share perspectives on how digital technologies can empower intelligent, data-driven manufacturing.

Given the growing consumer preference for sustainable goods, we believe smart-factory digitization initiatives should address two complementary business objectives in parallel: improving sustainability parameters while positively influencing business revenue.

Technology convergence is critical to manufacturing and supply-chain digital transformation, yet many manufacturers have only achieved a basic level of IT/OT convergence. Data capture and infrastructure design are key to success, and organizations need to make informed decisions about whether to host resources in the cloud or move them to the edge.

Circular transformation of industries

This cross-industry, multistakeholder initiative focuses on adopting circularity at scale, moving recycling and waste management solutions from proof of concept to full implementation. This has clear implications for supply chains.

By focusing on these areas of environmental impact, organizations can position their brands within the green agenda while exploring ways to extend the lifecycle of their products. By improving resource efficiency, they can build supply-chain resilience and uncover new sources of revenue, thereby generating sustainable business and environmental benefits at the same time.

As part of our contribution to industrial circularity, we';ve proposed Industrial Internet of Things solutions to complement Ralph Lauren';s circularity initiative. These solutions have the potential to improve the traceability of materials throughout the company';s manufacturing ecosystem — a critical element of supply-chain transparency.

People: The future of manufacturing

Conversations about supply-chain and smart-factory transformation tend to focus on technology, yet humans are a vital part of the equation. To remain competitive in an increasingly complex manufacturing landscape, organizations need to move beyond their focus on automation and consider the capabilities of humans.

They must develop strategies to ensure their workforce can actively contribute to finding and implementing advanced manufacturing solutions. Any technology deployed for frontline workers must be adapted to meet their needs and task requirements.

By putting their workforce at the center of these discussions, manufacturing businesses can create a more accessible and inclusive work environment, increase employees'; well-being and foster greater human–machine connection and collaboration.

Toward a smarter and more sustainable supply-chain

Supply chains are critical to the global economy and have a fundamental role to play in accelerating economic growth, social inclusion, prosperity and a shared vision for net-zero.

Together with our clients, NTT DATA is demonstrating the relationship between sustainability and performance improvements through supply-chain digitalization. Some examples of our successes in this area include:

• Helping a pharmaceutical manufacturer significantly reduce energy usage through digital-twin technology that simulates energy-consumption patterns
• Working with a leading natural resources company to improve safety standards by providing fully immersive training to frontline workers in high-risk production environments
• Deploying GenAI-enabled maintenance processes for a Tier 1 automotive supplier, resulting in improved production-line performance while reducing energy consumption and materials waste

GenAI: a new lever for high-performing supply chains and smart factories

Our conversations with leading companies confirm our belief that a revolution in supply-chain management is imminent. Specifically, automation and GenAI will dramatically reduce predictive lead-times and errors, resulting in improved performance and better customer service.

Drawing on our research and experience in the use and impact of GenAI, NTT DATA has developed an approach called origami methodology that identifies opportunities to apply GenAI in supply-chain processes and suggests optimal implementation paths for this digital capability.