Malaysia’s manufacturing sector has been a true powerhouse, driving the nation’s economic success for years. Consistent growth, with the sector expected to surge by 61% to RM587. 5 billion by 2030, is a testament to the industry’s adaptability. However, even the most robust industries need to evolve.
The global landscape is shifting, and Malaysian manufacturing requires a significant leap forward to stay ahead. While digitalisation has made inroads, many factories still rely on outdated technologies, hindering efficiency. These challenges are further compounded by a labour shortage in the manufacturing industry, putting immense strain on existing resources. Disruptions within the supply chain also threaten to throw a wrench in production.
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This is precisely why automation is no longer a “maybe” – it’s a critical tool for Malaysian manufacturers to navigate these hurdles and ensure continued success.
Addressing outdated technology challenges in a changing landscape
As we head into 2024, the path ahead has its challenges. Labour shortages are a growing concern, with projections indicating a significant deficit in skilled workers. This, coupled with potential disruptions within the supply chain, creates a perfect storm that threatens to disrupt production and hinder overall efficiency.
Perhaps the most pressing issue is the reliance on outdated technologies within manufacturing workflows. According to the EU-Malaysia Chamber of Commerce and Industry, while significant multinational corporations (MNCs) have established themselves in Malaysia, the country falls behind in terms of the use of cutting-edge manufacturing technologies. Many firms are also struggling to adapt to new technologies since they cannot afford to undergo a complete transition, owing to a lack of critical know-how and skills.
As a result, they remained reliant on legacy equipment and technology, limiting their efficiency and causing operational disruptions. Common struggles include time-consuming tasks like invoice reconciliation, purchase order processing delays, and manual CAD drawing processes. These obstacles strain valuable resources and significantly hinder overall productivity.
The current situation demands a solution that doesn’t add further economic burdens. Outdated technology simply isn’t the answer. This is where automation emerges as a game-changer, offering a cost-effective human-machine collaboration path towards streamlined processes and a brighter future for Malaysian manufacturing.
Streamlining processes and boosting productivity with RPA
RPA solution companies like us, akaBot, offer a compelling answer. RPA automates repetitive tasks, freeing human employees to focus on higher-value activities. One key advantage of akaBot’s RPA solution is its adaptability. It can be customised to fit your company’s unique needs and scale alongside your business growth.
The benefits are undeniable. Studies have shown that RPA solutions can achieve remarkable results, including a 90% reduction in processing time and up to 80% cost savings in manufacturing processes. This translates to significant advantages for Malaysian manufacturers. With less time spent on mundane tasks, employees can focus on higher-value activities like problem-solving, innovation, and quality control. This improves employee satisfaction and leads to a more efficient and productive workforce.
Let’s delve into the specifics. Consider the case of inbound invoice reconciliation, a process often burdened by high volume, diverse paperwork, and repetitive tasks. RPA can automate up to 75% of these tasks, freeing valuable employee time for more strategic activities. Imagine processing millions of invoices annually with a significant 50% reduction in processing time. These resources can then be directed towards crucial tasks like data analysis and supplier relationship management.
Similarly, purchase order processing, often complex and error-prone, can lead to missed deadlines and disrupted production. RPA can streamline this process, guaranteeing on-time delivery by adhering to procurement service level agreements. Quote gathering and order entry times can be slashed from 45 minutes to 5 minutes, significantly improving efficiency and reducing reliance on overtime work.
Production planning, traditionally a time-consuming and error-prone monthly process, can benefit significantly from RPA. Automation can reduce processing time by over 60%, from 20 minutes to 7.5 minutes. This minimises the risk of errors and allows for more frequent planning adjustments, leading to a more agile and responsive production flow.
These real-world examples demonstrate the transformative power of RPA solutions. They go beyond simple automation, delivering measurable improvements in efficiency, accuracy, and employee satisfaction.
Automation also plays a key role in managing potential supply chain disruptions, boasting an impressive accuracy rate of up to 99%. Through continuously monitoring inventory levels, supplier performance, and purchase orders, RPA can identify potential problems early on. This allows for proactive responses, such as expediting shipments from reliable suppliers or sourcing alternative materials to avoid stockouts. This proactive approach translates to a smoother production flow and minimised disruptions.
The future of automation in the Malaysian manufacturing sector
While automation in manufacturing has raised concerns about job displacement, the reality paints a different picture. Robotic Process Automation (RPA) solutions act as a complement, not a competitor, to the human workforce. Automating repetitive tasks like data entry and invoice processing, RPA frees up valuable employee time. This allows them to focus on higher-value activities that require human judgement and expertise, such as problem-solving, innovation, and quality control. Ultimately, this leads to a more engaged and satisfied workforce, with a positive impact on overall productivity.
Looking ahead, the future of automation in Malaysian manufacturing is brimming with potential. We can expect even more sophisticated RPA solutions to emerge as technology advances. These advancements promise to further enhance efficiency, empowering Malaysian manufacturers to compete more effectively on the global stage.
However, navigating future challenges requires continuous adaptation and a willingness to embrace new technologies. RPA solutions, with their focus on cost-effectiveness and scalability, offer a compelling path forward for manufacturers of all sizes in Malaysia. These technologies unlock the potential for significant improvements in efficiency, accuracy, and employee satisfaction.
The ultimate goal? Building a more robust and resilient manufacturing sector that is well-equipped to thrive in the future. As a leading provider of RPA solutions, we are committed to partnering with Malaysian manufacturers on their journey towards greater efficiency and innovation. By working together, we can ensure that Malaysian manufacturing remains a powerhouse in the global marketplace.
The article titled “Embracing efficiency: How automation can empower Malaysia’s manufacturing powerhouse” was authored by Ginny Truc To, Country Manager of akaBot
About the author
As the Country Manager for akaBot in Malaysia, Ginny takes the lead in revolutionizing business processes through innovative automation technology. With 9 years of experience in the tech industry, she is dedicated to implementing RPA solutions that streamline operations and drive efficiency.
As businesses in Malaysia increasingly embrace digital transformation, RPA technology & akaBot continue to play a pivotal role in revolutionizing processes and driving operational excellence through its RPA offerings. Ginny fosters strong relationships with key stakeholders, collaborating closely with clients to understand their pain points and deliver bespoke RPA strategies that drive sustainable growth. Driven by the passion for leveraging RPA’s potential. Ginny continues to lead transformative initiatives that propel businesses towards success within the Malaysia market.