Developing a managerial framework for digital manufacturing in the new normal era

Abstract

This study aimed to determine what a management framework for digital manufacturing in the new normal era will comprise of in the CPG industry in South Africa, and to establish what characteristics and requirements a managerial framework should constitute. Due to the COVID-19 pandemic, most manufacturing businesses in South Africa had to adopt new technology at a rapid pace. This was done out of necessity, with an outward rippling effect on all associated processes, from cybersecurity to e-commerce. Amidst the current crisis, global manufacturing and supply chain organisations are moving through a very distressing and disruptive stage. As we transition out of the current crisis, business leaders will need to make decisions and create a strategy that needs to be practically implemented to navigate to the "new normal." Significant acceleration in the use of technology, digitization, and new forms of working is going to be sustained. This quantitative study aimed to assess what qualities and criteria a managerial framework should have to create a successful digital framework. The sample was limited to persons representing CPG firms with a manufacturing presence in South Africa and are publicly traded on the Johannesburg Stock Exchange (JSE). In South Africa, digitalization is happening in a country where the economy has already seen premature de-industrialization. There is potential to develop, use, and perfect technology to drive value across the CPG value chain, particularly in the areas of product development, sales, distribution, manufacturing, procurement, and supply chain, as well as customer management, particularly in the context of the South African market.

The study concluded that the main challenges for digital manufacturing advancement in the CPG industry in South Africa today are a shortage of skilled resources, followed by financial or budgetary constraints. The main challenges for training or re-skilling are user adoption, fears of job losses caused by automation and robotics, and resistance to change from the current workforce. Technological challenges include an outdated IT- and OT stack, as well as the high cost of having a solid IT foundation to support manufacturers' digitization strategies.