According to the report “Impact of Intelligent Operations: Manufacturing”, prepared by Zebra in collaboration with Oxford Economics, new perspectives and opinion of the sector are becoming a priority for senior managers. A connected first line should not be considered a secondary operational issue, but rather a critical strategic priority for senior leaders, especially when there is a growing need to strengthen productivity across the organization.
Zebra’s study further reveals that strategic investments to create a connected frontline are generating significant productivity, revenue and profitability benefits for manufacturers, driven by continuous improvement of operations. These conclusions come at a time when more and more forward-thinking CEOs are highlighting the importance of ensuring the future of frontline work, where productivity plays a decisive role.
“The narrative around the frontline workforce is undergoing a profound shift across management teams globally,” said Stephan Pottel, Manufacturing Strategy Director EMEA at Zebra Technologies. “By focusing so much attention on artificial intelligence and white-collar jobs, we risk overlooking pressing issues and missing the immense potential represented by approximately 80% of the global workforce in blue-collar and frontline positions, whose impact on business productivity is crucial.”
“Our research, along with insights from other industry leaders, clearly demonstrates that things are changing. Addressing labor and skills shortages, boosting productivity through artificial intelligence and automation, and shaping the future of work for frontline employees are no longer operational concerns, but strategic imperatives that will shape the development of industries and economies.”
Zebra’s Vision
In October, Zebra launched its first Frontline AI Summit for senior leaders who share their vision for the future of the frontline, where AI connects workers, customers, data and machines to improve work every day and maximize productivity in every process.
Zebra’s report, which featured leaders from multiple industries, shows key insights into how targeted investments in a more connected frontline are driving tangible business results:
Significant increase in employee productivity: Manufacturers that optimized their frontline workflows over the past two years saw, on average, a 19% increase in employee productivity.
Increased revenue and profitability: Organizations across the supply chain that saw substantial improvements in their workflows experienced, on average, 2 percentage points higher revenue growth and 1.7 percentage points higher profitability than their peers over the past year.
Impact on quality control: Manufacturers who optimized their quality control and assurance processes increased product quality (73%), reduced human errors (52%), and improved seamless line adjustments (44%). These advances translated into 2.4 percentage points higher revenue growth and 1.4 percentage points higher profitability, indirectly boosting the system’s overall productivity.
AI connects workers, customers, data and machines to improve work every day and maximize productivity in every process
Efficiency in material movement: Leaders prioritize improving inventory access and control (79%), increasing efficiency and throughput (51%), and reducing both operating costs (36%) and material damage and waste (35%). Additionally, 20% say they need AI to drive their current improvement initiatives. Those who optimized material movement and handling saw, on average, 1.8 percentage points higher revenue growth than those who did not implement improvements, also contributing to greater operational productivity.
Intelligent automation: a strategic imperative
The research also reveals a shift in perceptions of automation, underscoring the need to take a more strategic view. While approximately four in ten business leaders define automation as optimizing workflows through software and digital tools, a third associate it with optimizing decisions and performance through advanced analytics and artificial intelligence. Only 11% highlight the use of robotics and hardware for physical tasks previously performed by humans.
“The finding that really needs to be addressed is that only one-fifth of leaders understand automation as a broad, strategic concept that integrates various technology solutions to maximize productivity and efficiency,” Pottel said. “This figure is too low. Leaders need to be supported to consider intelligent automation as an essential pillar of the organizational vision, key to achieving a more connected front line and long-term sustainable growth.”
