TRACE AND TRANSFORM: LEVERAGING DATA INSIGHT IN PROCESS MANUFACTURING DIGITAL TABLE OF CONTENTS TRANSFORMATION HOW IMPORTANT IS IT?

Strongly agree Somewhat agree Somewhat disagree Strongly disagree Agree Digital transformation TRANSPARENCY AND TRACEABILITY – THE RACE IS ON 3 is just a buzz word 30% JOINING THE DOTS: FROM VIABILITY TO PROFITABILITY 4 Digital transformation will play a key role in my market in the 86% RESPONDING TO THE CHALLENGE: CONNECTED 5 ASSETS AND REAL-TIME DATA I need to know more about 76% digital transformation WHAT OUR CUSTOMERS SAY 6 My company has a clear strategy 59% for digital transformation WHAT’S NEXT FOR YOUR BUSINESS? 8 HOW IFS EXPERTISE CAN HELP 9 Global industry views on the importance and relevance of digitization vary between industries around the globe. It’s worth asking yourself what sort of impact you think it might have for your business. MEET OUR INDUSTRY EXPERT 9

Source: IFS Digital Transformation Survey 2016

2 TRANSPARENCY AND TRACEABILITY – THE RACE IS ON

From food and beverage to chemical and paint businesses, the way process manufacturers use data is key to success and survival. On the one hand, consumers are looking for more insight into the products they buy and want easy access to information like allergens in food or ingredients in pharmaceutical products. Many are looking for proof of provenance to ensure they’re supporting quality products created without negative impact on human and animal welfare all along the supply chain. Retailers in turn are demanding full traceability of the products they stock to minimize their liability in the event of manufacturing issues and recalls. Add to this a growing number of legislative obligations that call for fine-tuned record keeping and reporting, and the need for a deliberate approach toward quality management and tracking becomes clear. What does this mean for process manufacturing? Simply – the way you use your data is now key to gaining and maintaining competitive advantage and managing reputation and risk.

of consumers are willing to pay more if 42% buying from businesses committed to positive social and environmental practices We’re seeing a growing interest in ‘connected factories’ and ‘connected assets’ that share real-time data. In these environments, end-to-end supply of new product launches ‘clean labelled’ chain management is improved and traceability is automated. At the same 30% in 2016 time, manual paper processes and system data entry are removed, along Mintel 2017 with the risks inherent in paper-based data capture and storage. 1 Product recall every 3 days USDA 2016 3 JOINING THE DOTS: FROM VIABILITY TO PROFITABILITY

Effective data capture, management and insight is essential to new product development, and not only to facilitate traceability and transparency. Achieving specific content values around ingredients like salt or fat, or realizing a vital chemical capability, and then establishing manufacturing cost effectiveness, all contribute to establishing whether a new product is viable. The very nature of product development turns this into a challenging process. Often hundreds of ideas and iterations will deliver only one viable new product to market. This kind of granular data capture and management is a challenge for traditional ERP products as too much data input is required. For some sectors, there are specific solutions to support new product development, but often this is managed via Excel spreadsheet or even paper notes.

TOP FIVE DRIVING FACTORS FOR DIGITAL TRANSFORMATION

Internal process efficiencies Accelerating innovation Cost savings Competitive differentiation/advantage Internal process efficiencies

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Insight from new research commissioned by IFS from Raconteur Custom Publishing, into the attitudes toward Digital Transformation in the manufacturing industry.

4 RESPONDING TO THE CHALLENGE: CONNECTED ASSETS AND REAL-TIME DATA Forward-looking businesses are putting processes and technology in place to extract maximum value and insight from their data. They know that accurate data collection and management is key to their future success and are selecting solutions that can evolve with the business climate. To stay in the race, process manufacturers need to:

›› Collect all information needed for quality management ›› Ensure quality assurance applies to suppliers too, and and traceability within an integrated system in real time, there are processes are in place to remediate or change using shop floor data suppliers if necessary ›› Select a solution that enables accurate costing of new ›› Get ready to operationalize IoT data and grow the product development initiatives and is quickly scalable capability incrementally as experience with using the for production without needing data re-input data increases ›› Set up quality assurance protocols with reporting ›› When ready, connect the IoT environment to the product capabilities from the start, including compliance and portfolio to process incoming requests and event data audit management, preventative and corrective actions, and non-conformance reporting

Food traceability market to grow from $11.63 billion in 2016 to $16.09 billion by 2022 Research and Markets 2017

58% of manufacturers say improving 63% of manufacturers have either 58% product quality is the most important 63% implemented or are planning to integrate objective they are pursuing by IoT technologies into their products.1 incorporating smart devices or 1 1 embedding intelligence. IJETSR, 2017: MPI Group’s IoT Study 2015 cited in Internet of Things (IoT) – Its Impact on Manufacturing Process, International Journal of Engineering Technology Science and Research 5 WHAT OUR CUSTOMERS SAY

“Our decision to purchase a new ERP system was driven “IFS Applications has transformed the face of our company by our aim to invest in efficiency, streamline our business by influencing the way we work in our firm. It has also processes and develop a platform to support future growth.’’ contributed to the development of employee competence.’’ Managing Director, Agrovista CEO, Hutmen S.A.

“For a food company […] traceability is critical. With IFS “We selected IFS Applications because it is a truly global Applications, we’ve been able to reduce the time it takes solution that will meet the local needs of each of our plants us to do that sort of analysis dramatically.’’ while providing real-time visibility across all sites worldwide. We plan to use the new system to achieve a variety of Financial Director, Cambridge Manufacturing corporate goals, including reduced inventory, more dynamic scheduling, improved manufacturing cost performance, “We have reduced the order lead time that we require from our shorter order-to-delivery times, better-informed decision customers by 30% as a result of the improved planning and making, and the ability to better evaluate and realize operational capabilities that IFS Applications provides us.” opportunities for growth and profitability.” Director of Corporate Planning, Heaven Hill Dupon Filaments Americas

6 WHAT OUR CUSTOMERS SAY

“We compared best of breed, local and global ERP vendors, “As a result of our lean manufacturing initiative, we have but no vendor could meet our requirements. IFS was reduced past-due orders by 80%, increased inventory turns the only completely integrated vendor that could meet by 20%, improved productivity by 20%, and increased quality our requirements in ERP with integrated enterprise asset by 60%. IFS gives us the technology platform we need to management (EAM) and mobile capability.” achieve this success in a mixed-mode environment.” CIO, Shanghai Pepsi-Cola CIO, Willamette Valley Company

“This IFS Applications implementation will allow us the “IFS Applications gives us centralized control over our ability to automate our lot traceability procedure within our enterprise by integrating multiple manufacturing and manufacturing plant, automate real-time performance metrics, warehouse operations in the U.S. and Canada. It also improve production scheduling efficiencies and reduce lead enables us to optimize our business processes and times to customers.” increase the efficiency of our production process, which involves multiple production lines.” Vice-President of Operations, WellPet President & Founder, Nature’s Path Foods

“IFS has been fantastic as a system in helping us to not only have that lean ability to satisfy the demand, but also “The additional flexibility within the system enables us with supply we reduce our stockholding of raw materials to configure our own events and screen changes without and packaging because we have better visibility of our the need for modifications, which is terrific.’’ complex supply chain. So you have a straight view of something that is complex, and you can achieve that IT Business Project Manager, Imerys Minerals through a good ERP system.” Process Development Manager, Farrow & Ball

7 WHAT’S NEXT FOR YOUR BUSINESS? Meeting changing market demands around traceability and preparing for a data-driven future both demand that you take control of your data, from capture and management through to analysis.

Process manufacturers that connect assets, production facilities and supply chains for real-time data sharing are already ahead in the quality control and traceability race. These connected environments allow for quick interrogation and reporting on any aspect of the operation during both product development and ongoing quality management. They are also primed to deliver IoT capabilities to their customers. In an increasingly specialized business world, ad hoc or one-size-fits-all solutions are no longer an option. Deep industry expertise combined with software solutions implemented around business needs and culture are necessary to future proof organizations. Working with experts like IFS provides you with the support you need to make sure your technology fits your business.

Here are just a few of the ways our modular solutions can help:

INTEGRATED NEW PRODUCT MANUFACTURING DATA MANAGEMENT REPORTING MANUFACTURING DATA VISUALIZATIONS AND REPORTING FOR AND TRACKING AND COST VIABILITY TO FACILITATE ACCURATE END-TO- CAPABILITIES REPORTING OPERATIONAL AND END TRACEABILITY TO MANAGE TACTICAL PLANNING AND QUALITY NEW PRODUCT ASSURANCE DEVELOPMENT

8 HOW IFS EXPERTISE MEET OUR CAN HELP INDUSTRY EXPERT IFS is here to help you prepare for what’s next – from realizing Industry experts can play a significant role in helping senior the benefits of future-facing technologies like interpreting and management plot a business strategy for digital transformation, managing big data to leveraging the opportunities of IoT. both operationally and culturally, throughout the entire organization. Leveraging the right industry experts to speed digital transformation IFS APPLICATIONS and realize competitive benefits has never been so important. IFS Applications is single, integrated application suite for global and demanding WHEREVER YOUR BUSINESS IS ON ITS DIGITAL TRANSFORMATION business. It provides best-in-class support for process manufacturing, discrete JOURNEY, WHY NOT SPEAK TO OUR EXPERT? manufacturing and demanding manufacturing modes. With non-proprietary Colin Elkins has over 20 years’ experience in ERP software solutions for technology and a component-based service oriented architecture (SOA) built on process industries. He has been a professional consultant and open standards, it is a truly flexible and agile solution. Modules include: senior pre-sales consultant for much of this time and has extensive knowledge of the business issues and requirements faced by process ›› IFS Quality Management ›› IFS Product Data manufacturers. This covers many industry sectors, specifically Food and Management ›› IFS Quality Assurance Beverage, Chemicals, Pharmaceuticals and Mills and Metals. He is a key ›› IFS Document Management ›› IFS Supply Chain member of the IFS Product Directions Board and plays an instrumental role in the decisions regarding IFS product strategy. ›› IFS Demand Management ›› IFS Costing ›› IFS Projects ›› IFS Manufacturing Visualizer™ Software will only take you so far. That is why at IFS we focus on selected industries to become true experts in how they operate. Our team can IFS IOT BUSINESS CONNECTOR help you get it right the rst time with less risk, quicker time to solution and lower cost. Good strategies increase revenue, boost projects and enhance efficiency. Build your IoT strategy around the IFS IoT Business Connector and see how your COLIN ELKINS manufacturing company’s operational data becomes business intelligence and Global Industry Director for how business processes become more efficient. Process Manufacturing

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