Singapore’s manufacturing sector is closing in on its Manufacturing 2030 target but unlocking further growth will require stronger Digital Transformation, particularly through integrating Internet of Things technologies with modern ERP systems, says Vincent Tang, Vice President, Asia, Epicor
Between 2020 and last year, Singapore’s manufacturing output added 28.8% in value to the economy. With great time being made on the 50% value-added target of ‘Manufacturing 2030’, there is a case to be made that the sector could surpass this benchmark. To do this, however, manufacturers must modernise their supporting systems, particularly in logistics and supply chain management.
Unlocking the sector’s potential will require a shift away from legacy logistics systems, which lack real-time visibility, fragment data and rely on slow manual processes. This results in significant inefficiencies and costly delays throughout the supply chain.
These systems are also susceptible to today’s global supply chains, lacking the flexibility to swiftly adapt to supply shortages, port congestion or geopolitical changes.
Businesses are also facing intense pressure from rising customer expectations that demand faster, cheaper and more transparent delivery. Accurate delivery estimates and real-time status updates are beyond what legacy logistics setups are equipped to do.
Internet of Things (IoT) devices such as edge sensors, RFID tags and GPS trackers can address these gaps – but they need to be scaffolded by an enterprise resource planning (ERP) solution that provides a single consolidated view of the business.
The digital gap in logistics
A modern ERP solution is the backbone that allows IoT devices to deliver their full potential.
Integrating critical functions such as inventory and warehouse management, supply chain and logistics monitoring, customer relationship management (CRM), accounting and analytics into a unified digital platform provides the single source of truth needed for real-time decision-making.
When IoT data from sensors, RFID tags and GPS trackers is seamlessly fed into this central system, businesses gain end-to-end visibility across their operations.
This integration transforms raw data into actionable insight. Automated alerts trigger inventory replenishment; predictive analytics identify risks before they escalate and dynamic routing optimises deliveries in response to disruptions.
This enhances operational resilience and reduces maintenance costs while prolonging the life of equipment.
Together, ERP and IoT can form a responsive digital nervous system that enables supply chains to sense, analyse and react in real time to the volatility and rapid change that manufacturers must grapple with today.
Security and integration
Each IoT device connected to a network acts as a potential gateway for cyber-risks. Bad actors might exploit vulnerabilities within these devices to access sensitive data, disrupt operations or even interrupt supply chains.
A modern ERP solution reduces these risks via end-to-end encryption and multi-factor authentication (MFA), while businesses must also frequently update the firmware on IoT devices.
The shift to smart manufacturing will also take time and legacy systems will still be part of the infrastructure even as new devices are introduced.
Combining IoT devices with legacy systems can be challenging, particularly when older systems do not have the necessary compatibility to interact with modern technologies.
Many companies have struggled to integrate current supply chain management systems with IoT platforms, resulting in disjointed data and inefficiencies.
A unified ERP platform will offer manufacturers the ability to automate workflows and integrate third-party applications – including legacy software – with IoT devices. This will empower the seamless exchange of data between systems, serving as a data bridge between different platforms.
Making IoT work for you
IoT adoption can also come with significant upfront expenditures on hardware, systems and software. While the long-term benefits often outweigh the initial costs, it is possible to minimise them even in the short term.
A modern ERP platform can offset these expenditures through the ability to create IoT dashboards with configurable widgets that align with business priorities.
This leads to better control over production planning and inventory management, which reduces errors and administrative costs.
To ensure effective IoT deployment, businesses should begin by selecting devices aligned with their objectives and specific use cases.
Sensors should then be deployed in the right locations, with outcomes closely monitored to evaluate performance.
As insights emerge, a modern ERP solution enables organisations to assess operations and pinpoint where IoT delivers the most value.
From there, key processes can be prioritised and implementation can be gradually expanded across the business.
Finally, each IoT device collects a large amount of data. The real challenge comes in handling, structuring and making sense of that data.
If not properly managed, this surge of information can overwhelm current systems and result in inefficiencies.
For instance, intelligent warehouses can produce data regarding various aspects such as temperature changes and inventory shifts, necessitating strong data management systems.
A modern ERP solution will be equipped to handle this influx, ensuring the ability to automate data collection and streamline operations.
Beyond ‘Manufacturing 2030’
As Singapore’s manufacturers continue to press on with the ‘Manufacturing 2030’ vision in the background, intuition will not be enough to thrive.
Today’s most competitive businesses harness real-time data to refine their operations, boost efficiency and meet customer expectations with precision.
Integrating IoT with ERP will give manufacturers the real-time supply chain visibility needed to do this, fuelling the sector’s potential to grow well into the next decade and beyond.
