RPA in manufacturing:
use cases, benefits & challenges

RPA in manufacturing: use cases, benefits & challenges

October 24, 2024

RPA use cases in manufacturing

Being on the frontlines of innovation, manufacturers are actively adopting RPA to automate voluminous and repetitive tasks that constitute their daily routines.

Procurement management

According to HFS Research, poor procurement data quality and an overwhelming amount of operational tasks are the major roadblocks for procurement departments. RPA can help tackle these issues and contribute to the optimization of procurement operations within a manufacturing enterprise. Companies can implement RPA bots that collect all the necessary vendor information from the submitted documents, public databases, and other sources, and alert procurement specialists if there is not enough information to validate a vendor. After approving the vendor, procurement specialists can use RPA bots to generate contracts using prebuilt templates and vendor data, including billing address and preferred payment period. RPA bots are also used to automatically set up new vendor accounts in the ERP or vendor management system and generate purchase orders based on data extracted from purchase requisitions, supplier catalogs, and emails.

Сase study: Purchasing process automation for E. & J. Gallo

E. & J. Gallo, a US-based winery and wine distributor, introduced RPA to automate procurement and supplier data entry in anticipation of a new product launch. As a result of RPA implementation, the company successfully launched the product under an aggressive schedule without adding temporary staff.

Inventory management

Even with comprehensive warehouse management systems in place, managing inventory can be a time-consuming and error-prone task. Inventory managers and warehouse staff still have to manually enter information from delivery notes into inventory management systems, which significantly slows down business processes.

To free up employees from manual data entry, companies can use RPA bots to automatically update stock levels in the inventory management system. An RPA bot processes the scans of delivery notes using optical character recognition (OCR) technology and promptly updates information about raw materials inventory levels.

Case study: RPA for warehouse data processing

SF Supply Chain, a vendor providing supply chain services to manufacturing enterprises and other companies, implemented an RPA system for warehouse data management. With RPA bots, the company automated data entry into the warehouse management system and inventory reports consolidation, which resulted in saving more than 74,000 employee working hours.

Accounting optimization

For accounting departments, the bar is often set extra high: employees need to process voluminous financial data, validate its accuracy, and rule out any mistakes that can bring losses to the enterprise.

Therefore, manufacturers can implement RPA software to automate most of these mundane activities. For example, bots can simplify invoice processing by extracting financial data from digital documents as well as from the scans of physical invoices. By minimizing time-consuming manual data entry, RPA software helps manufacturers increase financial data accuracy. Also, RPA streamlines accounts payable and accounts receivable management by automatically retrieving vendor data, initiating the payment, generating customer bills, and sending payment reminders to the clients according to the corporate credit and collection policy.

Case study: Invoice processing

ArcelorMittal Nippon Steel, India’s major steel producer, implemented OCR-augmented RPA software for document understanding to process invoices and ensure timely vendor payments. Now, RPA bots help maintain an optimal cash flow within the organization and meet contractual obligations by accurately processing 300,000 invoices from 10,500+ vendors a year.

Bill of materials management

Whether the manufacturer launches a new product or reformulates the products in the current portfolio, the accurate list of components or ingredients should be reflected in bills of materials (BOMs). However, creating new BOMs or constantly keeping existing BOMs up-to-date can be a time-consuming task. 

An RPA bot can automatically extract relevant data, like ingredient names, part numbers, costs, and quantity, from various sources, including technical designs, product specifications, and inventory records, and start the BOM creation/update processes in seconds.

Case study: BOM update
British American Tobacco (BAT) implemented RPA bots to update the cigarette recipes and cost of the materials used based on the changes in the quality, price, and availability of the recent tobacco leaf stock. As a result, BAT’s RPA bots have automated 400 hours of work a week.

Customer relationship management

By implementing RPA to handle time-consuming customer relationship management tasks, manufacturing companies leave more time for their sales representatives and support agents to build trust with clients. For example, sales departments can use RPA bots to enhance the onboarding journey for new customers. An RPA bot can monitor order requests in real time, and if there is an order from a new customer, the bot can initiate contract creation. It scans the incoming order to detect the information required to create a new contract, such as billing address or payment method information. Then, the bot enters it into a respective contract template and sets up a new customer account.

Сase study: Customer support

Sharp, a Japanese electronics manufacturer, implemented RPA to assist help desk employees with identifying callers and getting comprehensive customer information in advance. This resulted in speeding up the average handle time by up to 63% and improving the overall customer experience.

Order management

Order management is a tedious process, which comprises many rule-based tasks, which can be streamlined with RPA.

Manufacturing companies can use RPA to process quote requests and purchase orders with NLP (for textual information) and OCR (for document scans) capabilities and extract order information. Then, sales teams can use the extracted information to prepare quotes or place new orders. After that, RPA bots populate invoice templates with information from the incoming purchase orders and generate shipping invoices.

Сase study: Intelligent order management
AustriaCard Holdings, a hardware manufacturer, deployed RPA for sales order creation and optimization. An order management team used to enter order data from customers’ emails into multiple Excel sheets, compile sales orders, and upload them to the ERP system manually. With RPA implementation, the company managed to automate all these tasks, saving 2,000+ man-days over three years.

Freight management

For a manufacturing enterprise, timely order delivery contributes to a stable cash flow and increased customer satisfaction. RPA bots can handle various freight management tasks, including creating template-based contracts for logistics companies and scheduling deliveries.

To keep customers updated on order statuses, companies can use RPA bots that automatically retrieve delivery time estimates from the logistics management software and send respective customer notifications using ready-made templates.

Сase study: Freight inward process automation

Somany Impresa Group, a consumer appliances manufacturer, implemented RPA to streamline 80+ business operations, including the freight inward process. Now, RPA bots process vendor invoices and shipping documents using OCR as well as enter data on actual freight costs. As a result, RPA implementation reduced the effort required for manual processes by 80-90%.

Performance & compliance reporting

Manufacturing enterprises must regularly report on their financial, sustainability, and production metrics, including assembly lines efficiency, equipment and physical robots downtime, and detected quality control issues. Robotic process automation can handle it with ease, generating detailed reports for future audits. 

RPA bots enhanced with natural language processing can extract relevant details for the reports, including from unstructured data (e.g., emails, notes), which significantly speeds up data preparation and decreases report creation time. 

Сase study: RPA reporting for a food manufacturer
Ajinomoto, a Japanese multinational food manufacturer, implemented RPA to handle bank balance report creation, backups, and reformatting. Before that, their finance and accounting departments used to transfer, convert, and manually check vast volumes of corporate data every day. As a result, the company saves 230+ hours a month.

Data management

As a manufacturing business grows, the amount of data that needs processing increases. Instead of hiring new employees, enterprises can entrust laborious data management activities to RPA bots. 

RPA bots can be configured to remove duplicates, cleanse and reformat corporate data as well as structure and prepare it for data analytics or migration. RPA bots enhanced with AI capabilities can process unstructured data as well, including invoice scans, emails, and audio and video content, reducing the likelihood of human errors and contributing to consistent data processing. According to Strategic Market Research, 85% of companies experience a boost in data accuracy after RPA implementation.

Сase study: All-around data management

Vertiv, a global provider of critical infrastructure, experienced the benefits of RPA across multiple business processes, including contract management, invoicing, and others. The bots help extract data from business-critical documents (purchase orders, invoices, etc.) and enter it into pre-built templates, eliminating the need for human intervention. If the information is insufficient, the bot alerts the responsible employee.

RPA demo: smart invoice processing

In this demo video, Itransition’s experts show how RPA bots perform intelligent invoice processing by automating the collection, extraction, and entry of unstructured invoice data.

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Benefits of RPA for manufacturing

24/7 availability

RPA bots don’t get tired, so they can perform mundane back-office operations, like data entry and data processing, both during and after business hours.

Data accuracy

Bots extract and aggregate information based on strictly defined sets of rules, minimizing the risk of errors that occur when employees perform the same tasks manually.

Cost savings

By saving hundreds of human hours, RPA helps manufacturers decrease operational costs to free up financial resources for strategic initiatives.

Best RPA platforms for manufacturing

Demonstrating steady growth over the past few years, the RPA market is mature and offers multiple RPA tools that can help manufacturing companies automate repetitive tasks. When selecting RPA platform providers, we recommend starting the evaluation with Gartner Magic Quadrant leaders that offer robust capabilities.

Completeness of visionAbility to executeChallengersSAPNiche playersSamsung SDSNintexLaiyeIBMLeadersUiPathAutomation AnywhereSS&C BluePrismMicrosoftVisionariesAppianSalesforceServiceNowPegasystems

Chart title: 2023 Gartner® Magic Quadrant™ for Robotic Process Automation
Data source: gartner.com – 2024 Gartner® Magic Quadrant™ for Robotic Process Automation

UiPath

UiPath is a leading RPA platform with 10,800+ customers worldwide, including manufacturing giants like Siemens, Heineken, Lenovo, and Xerox. For discrete and process manufacturing companies, the platform offers a well-rounded feature set to automate materials sourcing, supply chain management, marketing, compliance, and other processes.

Platform highlights
  • Ready-made components and templates to automate administrative routines in manufacturing (e.g., invoice processing)
  • Macro recorder for bot creation based on the user’s on-screen actions
  • 1,400+ out-of-the-box APIs for popular business software
  • AI and machine learning functionality, including OCR, NLP, and predictive analytics
  • Cloud and on-premise deployment
  • 60-day free trial

Microsoft Power Automate

Power Automate is a part of Microsoft’s Power Platform suite, along with Power BI and Power Apps. This industry-agnostic RPA platform provides manufacturing enterprises with low-code capabilities for workflow automation.

Platform highlights
  • Native integration with Microsoft 365 tools
  • Microsoft Copilot for AI-based manufacturing automation
  • Templates for automation flow creation
  • Integrated OCR, NLP, and artificial intelligence capabilities
  • APIs for integration with business systems, like SAP, Salesforce, etc.
  • 90-day free trial

SS&C BluePrism

SS&C Blue Prism is among the leaders of the RPA market, offering solid capabilities for intelligent automation in the manufacturing sector.
Platform highlights
  • Rule-based and intelligent bots for data processing
  • AI for automated data extraction and classification
  • RPA bot integrations with databases, apps, legacy systems, or web services
  • Bot orchestration, performance analytics, and exception management
  • 30-day free trial

Automation Anywhere

Automation 360 is Automation Anywhere’s RPA solution that helps run over 300 million bots a year. 

This cloud-native platform helps manufacturers automate their standardized business processes, including invoicing, vendor management, regulatory compliance, and financial reporting.

Platform highlights
  • 1,200 prebuilt bots
  • AI features enabled by GPT-4, ChatGPT-3.5 Turbo, and GPT-3 models
  • Macro recorder for faster bot creation
  • Automation opportunities discovery with AI
  • 30-day free trial

RPA challenges and how to solve them

Issue

Solution

Change management

Employees have to adapt to inevitable changes in their daily routines and master new tools.

Employees have to adapt to inevitable changes in their daily routines and master new tools.

To help employees quickly adapt to new workflows, the company should launch a comprehensive training program and timely gather employee feedback to eliminate any inefficiencies or issues that negatively impact user experience.

RPA scalability concerns

With time, the manufacturing enterprise may want to scale its automation initiative, and the existing RPA solution may not be able to accommodate this growth.

With time, the manufacturing enterprise may want to scale its automation initiative, and the existing RPA solution may not be able to accommodate this growth.

When choosing RPA technologies, manufacturing companies should evaluate the scalability of the potential platform. Consider solutions that offer deployment flexibility and a centralized management and control of a large number of RPA bots.

Our RPA services for manufacturing

Our RPA services for manufacturing
We analyze the current operational workflows in your manufacturing enterprise to design the RPA solution and plan out its non-disruptive deployment. You get a clear RPA implementation project roadmap with key milestones and KPIs, as well as a technical design of a platform-based RPA solution.
Our team handles manufacturing RPA solution implementation end-to-end: plans automation based on your business needs, uses the RPA platform’s functionality to create bots for routine operations, sets up RPA infrastructure, and conducts end user onboarding. We also build AI-enhanced solutions that can handle more advanced tasks, like processing unstructured data and customer interactions.

Looking for a trustworthy RPA vendor?

Get in touch

Furthering automation in manufacturing

RPA brings tangible benefits to companies across all industries, including manufacturing. As RPA platforms become more accessible and offer comprehensive automation capabilities, now is the optimal time to capitalize on the technology, eliminate time-consuming administrative tasks from employees’ routines, and get ahead of competitors.

If you want to optimize business processes across your manufacturing organization with RPA, making them more cost-efficient, consider partnering up with a reliable RPA vendor like Itransition. 

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