{"id":11704,"date":"2024-03-07T10:09:00","date_gmt":"2024-03-07T18:09:00","guid":{"rendered":"https:\/\/www.qad.com\/blog\/?p=11704"},"modified":"2024-03-07T10:09:00","modified_gmt":"2024-03-07T18:09:00","slug":"optimize-your-enterprise-with-qads-industrial-transformation-platform","status":"publish","type":"post","link":"https:\/\/www.qad.com\/blog\/2024\/03\/optimize-your-enterprise-with-qads-industrial-transformation-platform","title":{"rendered":"Optimize Your Enterprise with QAD&#8217;s Industrial Transformation Platform"},"content":{"rendered":"<p>[vc_row][vc_column][vc_single_image image=&#8221;11705&#8243; img_size=&#8221;full&#8221;][vc_column_text]<\/p>\n<h1><span style=\"font-weight: 400;\">A Strategic Response to Labor Shortages, Productivity Challenges and Change in Manufacturing and Supply Chains<\/span><\/h1>\n<p><span style=\"font-weight: 400;\">In the face of an accelerating pace of change, escalating workforce shortages and a productivity plateau in the manufacturing sector, QAD is delivering the Industrial Transformation Platform to overcome these industry-wide challenges. This cutting-edge initiative is designed to redefine global business operations and empower organizations on their journey to becoming <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/adaptive-enterprise\" rel=\"noopener\"><span style=\"font-weight: 400;\">Adaptive Enterprises<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Recent industry statistics paint a concerning picture:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">72% of companies are negatively impacted by labor shortages.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">There has been a 6.5% decrease in labor productivity since 2011, reversing a decades-long trend of 3.5% yearly increases.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">An estimated two million manufacturing jobs will go unfulfilled by 2030.\u00a0\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Nearly 40% of CEOs think their company will no longer be economically viable a decade from now, if it continues on its current path.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The industry has historically followed a traditional systems approach focusing on efficiency. This worked well, until it didn\u2019t. Supply chains broke in the face of disruption in 2020 and remain challenged. Despite significant investments and the promise of Industry 4.0, even efficiency has languished as evidenced by the productivity plateau.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/industrial-transformation-platform\" rel=\"noopener\"><span style=\"font-weight: 400;\">Industrial Transformation Platform<\/span><\/a><span style=\"font-weight: 400;\"> recognizes that an efficiency focused approach is brittle and systems alone are insufficient. Two similar companies can implement the same software with very different outcomes. Systems are meant to support processes that in turn support people. Having low costs only works if you can produce the right product and get it to market at the right time.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The Industrial Transformation Platform addresses these issues head-on by emphasizing the optimization of people and processes, as part of its foundational O\u00b3 approach. This approach is applied from the design of the product, through prescriptive implementation services, coaching, customer success, and beyond.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The goal is to help manufacturers and supply chains to rapidly respond to change and deliver efficiency, agility and resilience for effective customer service (the promise made from suppliers to customers to deliver the right product, at the right price, at the right time).\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">A Focus on the Frontline Worker<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">It\u2019s not uncommon for manufacturers to apply the following logic: \u201cWe need to be as efficient as possible to successfully compete and hit our margin targets. Labor is a significant percentage of our Cost of Goods Sold (COGS). We can reduce the cost of labor through greater automation. High employee churn is another reason to pursue automation over labor. Machines don\u2019t quit.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But the truth is that machines can\u2019t do everything (we have not achieved Artificial General Intelligence). People are hired to fill in the gaps. People are not machines, yet we tend to treat them the same way. By doing so we are failing to optimize a significant cost driver and limiting the essential benefits of having people, their ability to deal with change and problem solve. Employee churn is high because we treat people like machines.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Significant efficiencies can be gained by enabling the flywheel of empowerment, retention and productivity. Labor productivity improvements directly impact efficiency. Productive and empowered employees increase the effective capacity of your plant and accelerate time to productivity for new employees giving manufacturers the agility to increase production beyond what was previously possible without having to invest in production equipment or new plants, and reduce the amount and impact of employee attrition. Empowered employees with a growth mindset take extreme ownership of challenges that impact their production goals, creating resilience in the face of disruption.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">QAD\u2019s <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/solutions\/qad-redzone-connected-workforce\" rel=\"noopener\"><span style=\"font-weight: 400;\">Connected Workforce<\/span><\/a><span style=\"font-weight: 400;\"> solution has delivered on average in the first 90 days after implementation:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">74% increase in employee engagement<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">29% increase in labor productivity<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">32% reduction in employee attrition<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400;\">Process Intelligence for Continuous Improvement<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Industry best practice processes are an important component. The challenge is that processes as designed are often not the processes that are being executed. It is difficult to optimize a process without understanding what that process looks like in practice. QAD Process Intelligence aligns process design and execution for greater efficiency, compliance, and continuous improvement. Leveraging AI, the solution maps your processes as they are being executed with actionable insights around where processes deviate from design, the impact this creates, and the root causes. QAD <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/solutions\/qad-process-intelligence\" rel=\"noopener\"><span style=\"font-weight: 400;\">Process Intelligence<\/span><\/a><span style=\"font-weight: 400;\"> has generated outcomes for customers including:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">16% boost in customer satisfaction<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">30% increase in maintenance productivity<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">$500K savings in the first six months of use<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400;\">The Role of Pragmatic AI in Manufacturing<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">QAD&#8217;s view on <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/pragmatic-ai\" rel=\"noopener\"><span style=\"font-weight: 400;\">Pragmatic AI<\/span><\/a><span style=\"font-weight: 400;\"> stands out in the industry. Unlike the typical emphasis on technology for technology&#8217;s sake, QAD&#8217;s application of AI is grounded in solving real-world problems, supporting humans, and enhancing processes for manufacturers and supply chains. This practical approach to AI ensures that technology serves as an enabler, not as a replacement for human expertise. QAD delivers productized AI for Intelligence Amplification (IA), not science experiments. AI enabled solutions include:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Digital Supply Chain Planning<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Process Intelligence<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Product Classification<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Connected Workforce: Collaboration\u00a0<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400;\">A Path Forward with QAD&#8217;s Industrial Transformation Platform<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The QAD Industrial Transformation Platform offers a robust solution to the critical challenges faced by the manufacturing sector today. By focusing on the interplay of people, processes, and systems, and leveraging the practical applications of AI, QAD is empowering businesses toward operational excellence and world class productivity.<\/span><\/p>\n<p><b>For a deeper understanding of how the Industrial Transformation Platform can help you achieve operational excellence and world class productivity, <\/b><a target=\"_blank\" href=\"https:\/\/event.on24.com\/wcc\/r\/4473304\/54CA1C1038475AC89891AAD44155EFCA?partnerref=QAD-Press-Release\" rel=\"noopener\"><b>watch the webinar<\/b><\/a><b> and take <\/b><a target=\"_blank\" href=\"https:\/\/www.qad.com\/ae-diagnostic\" rel=\"noopener\"><b>the Adaptive Enterprise diagnostic<\/b><\/a><b>.<\/b>[\/vc_column_text][\/vc_column][\/vc_row]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[vc_row][vc_column][vc_single_image image=&#8221;11705&#8243; img_size=&#8221;full&#8221;][vc_column_text] A Strategic Response to Labor Shortages, Productivity Challenges and Change in Manufacturing and Supply Chains In the face of an accelerating pace of change, escalating workforce shortages and a productivity plateau in the manufacturing sector, QAD is delivering the Industrial Transformation Platform to overcome these industry-wide challenges. This cutting-edge initiative is designed [&hellip;]<\/p>\n","protected":false},"author":21,"featured_media":11705,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[182,197],"tags":[1689,12,2807,2900,24,2901,2828,572,92],"class_list":["post-11704","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-innovation-and-technology","tag-change-management","tag-continuous-improvement","tag-frontline-workers","tag-labor-shortages","tag-manufacturing","tag-pragmatic-ai","tag-process-mining","tag-productivity","tag-supply-chain"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Optimize Your Enterprise with QAD&#039;s Industrial Transformation Platform | QAD Blog<\/title>\n<meta name=\"description\" content=\"QAD is delivering the Industrial Transformation Platform 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