5 predictions for the manufacturing and logistics industry in 2023

IoT, PaaS model, MES system, 3PL... are predicted by Mr. Fabio Belloni, co-founder of Quuppa, to continue to explode in 2023.

In addition to co-founding one of the leading agencies in geolocation technology in the US - Quuppa, Mr. Fabio Belloni is also the Chief Growth Officer of the organization. With many years of experience working and researching in the field of manufacturing and logistics, he predicts that this field has faced great challenges from the past few years, not only in 2022.

Supply chain disruptions and rising energy costs are seen as major obstacles at the moment. Along with the disadvantages, the above two fields still recorded many positive data, showing the expected growth rate.

Accordingly, Director Quuppa has made predictions about 5 main trends that are likely to directly affect goods production and distribution solutions in 2023.

IoT will continue to expand

Mr. Belloni said that in terms of connectivity, the Internet of Things (IoT) will continue to be a trend pursued by not only the manufacturing and logistics industry but also in many other technology-related fields.

Particularly in manufacturing and logistics, IoT devices help collect and analyze data and then communicate the results to companies' systems, thereby improving business operations. The collected data can show which parts are inefficient, need to be changed, reduced or improved or supplemented. This is also a way for businesses to improve worker safety while reducing human waste.

IoT is predicted to be the general trend, including logistics and manufacturing

The total number of IoT devices used in this sector is expected to more than double in the next two years. In return, companies need to carefully consider security vulnerabilities related to smart devices to avoid data leakage.

"Businesses and online security professionals must always be vigilant to protect systems from unauthorized access. Manufacturing and logistics companies may consider implementing a mobile device management (MDM) strategy. to protect systems and data," Belloni said.

With MDM, employees when using personal devices to work and access corporate systems such as laptops and personal tablets, can be closely monitored by VPN, password, even can track via GPS. In addition, MDM can also wipe data on those devices if it detects signs of being compromised.

Increasing adoption of PaaS model

Another trend Mr. Belloni mentioned, with a lot of potential to accelerate in 2023, is the application of the PaaS model (Platform as a service - Platform as a service). This is inherently a variant of SaaS. However, this cloud computing model offers a development environment as a service.

Enterprises will build applications that run on the provider's infrastructure, and then distribute it to users via that provider's servers. This model helps to create better interactions with customers and expand into new business areas.

The PaaS business model also provides application and service providers with other solutions such as maintenance contracts, customization, based on specific needs and conditions. This makes the business relationship more personalized.

The MES system will continue to increase

Among the major technology trends in manufacturing and logistics, the production execution system (MES) is highly appreciated by Mr. Belloni and has a lot of potential. MES helps track and record the entire production process with real-time data. This system also helps to monitor from production planning to inventory control, employee work schedule...

MES also helps businesses generate reports throughout the process from product order creation to delivery. The system also integrates other technologies such as enterprise resource planning (ERP), helping to reduce supply chain problems, budgeting and human resource management... In addition, MES also provides Essential tools for monitoring the production lifecycle, including inventory, personnel, machinery and safety.

Outsource supply chain management

One of the experiences that Director Quuppa has gained after many years of working in the field of production - logistics is hiring a third party to support the company's supply chain management. Third-party logistics providers (3PLs) help meet and address long-delayed cargo needs, helping things flow more smoothly and quickly. With the wave of globalization, 3PL shows even more potential to help remove the burden of shipping and delivery handling.

3PL vendors can also help with inventory management, warehousing, distribution, and order fulfillment. Manufacturing and retail businesses can, through this outsourcing team, streamline any segment of the supply chain, from sourcing raw materials to distributing final products.

Concluding, Mr. Fabio Belloni emphasized that the important thing still lies in whether manufacturing and logistics enterprises can seamlessly coordinate all their systems together. Otherwise, the application of the above trends instead of reducing the pressure load, on the contrary, can draw more tasks and obstacles.

"Businesses also need to focus on reporting and data analysis. The continuous feedback loop of data allows companies to adjust quickly and ensure that systems are working together effectively." Director Quuppa added.