The Smart Manufacturing Revolution in India

Sunil Wahi, Vice President, Applications Solution Engineering, APAC, Oracle speaks with Minu Sirsalewala, Executive Editor of Dataquest, about the significant transformations occurring in India’s manufacturing sector. As smart manufacturing takes center stage, driven by advanced technologies like AI and generative solutions, organizations face both challenges and opportunities. From addressing labour shortages to implementing sustainable practices, learn how manufacturers are adapting to a rapidly changing environment. With India emerging as a global manufacturing hub, the focus is on leveraging technology to enhance efficiency and competitiveness—are we prepared for this pivotal shift?

Could you provide an overview of the current manufacturing landscape in India? What are the primary challenges that manufacturing organizations are facing, and how critical is it for them to balance the needs of people, technology, and sustainability in the digital age?

The current manufacturing landscape in India is undergoing a major shift driven by digital transformation, with new industries such as semiconductor (SEMICON) manufacturing emerging under the “Make in India” initiative. The advent of advanced technologies like AI, IoT, and robotics is helping modernize manufacturing processes to boost productivity and global competitiveness. However, India faces significant challenges such as labour shortages, skill gaps, and an aging workforce that is retiring, requiring a robust transfer of knowledge to the younger generation. Additionally, there is a need to train workers on the latest technologies to ensure efficient operations. Supply chain complexity is another challenge, with increasing demands on logistics, particularly in tier 2 and 3 cities, putting pressure on infrastructure and driving the need for smarter strategies. Organizations are under pressure to create efficient and resilient supply chains that can quickly adapt to economic conditions, control costs, and protect margins. Indian manufacturers must also navigate regulatory hurdles that impact their bottom line. Sustainability is a growing concern, but many organizations are unsure where to begin in developing comprehensive environmental, social, and governance (ESG) strategies. Implementing sustainability across supply chains and manufacturing processes will be essential to maintaining profitability and competitiveness. Balancing the needs of people, technology, and sustainability is critical. Manufacturers must invest in upskilling the workforce to harness new technologies while embedding sustainability into operations. The future of Indian manufacturing will depend on how well these elements are harmonized to achieve both economic and social objectives.

Sustainability is a growing concern, but many organizations are unsure where to begin in developing comprehensive environmental, social, and governance (ESG) strategies.

How are AI and Generative AI solutions transforming traditional manufacturing and supply chain practices? Can you share some specific examples of how these technologies are being applied to revolutionize operations and improve efficiency?

AI and Generative AI are reshaping traditional manufacturing and supply chain operations by enabling better forecasting, real-time data analysis, and automation of manual tasks. For example, predictive maintenance systems use AI algorithms to analyse equipment data, predicting failures before they occur, which reduces downtime and extends the lifespan of machinery. Generative AI is transforming the design process, allowing engineers to generate numerous design alternatives quickly, speeding up product development cycles. Another area where AI is making a significant impact is supply chain management. The latest updates to Oracle Cloud SCM include enhancements that help customers leverage AI to increase workforce productivity, expand visibility, accelerate processes, and prioritize the next best action to drive results. Oracle has also integrated over 50 AI agents in its Fusion cloud business applications to tackle various business processes across multiple domains like finance, HR, and supply chain. These AI agents are designed to automate tasks like managing inventory, processing invoices, and analyzing sales calls, drastically improving operational efficiency. The flexibility of these AI agents, powered by large language models, allows them to handle multi-step tasks, providing organizations with more agile and intelligent systems than ever before. AI-driven systems can predict demand fluctuations and adjust inventory levels, allowing companies to react swiftly to market changes and optimize resource allocation. A notable example is Oracle’s AI-enabled solutions, which assist manufacturers in automating tasks like item description and lifecycle management, leading to increased operational efficiency and innovation.

A real-world example is Western Digital, which moved to Oracle Fusion Cloud, reducing its global supply chain planning time from 4-5 days to less than two hours.

Manufacturers have cited a lack of skilled workforce as a significant challenge. How can new and emerging technologies help fill this skills gap and amplify the efforts of the existing workforce without replacing them?

Emerging technologies such as AI, AR, and machine learning can address the skills gap in manufacturing by enhancing the capabilities of the existing workforce rather than replacing them. AI-driven training platforms offer personalized learning experiences, allowing employees to gain new skills at their own pace. Additionally, technologies like augmented reality (AR) provide immersive, practical training environments where workers can simulate real-world tasks and learn new processes more effectively. These tools help amplify human efforts, enabling workers to collaborate with automated systems, increase productivity, and improve job satisfaction. For example, the new Smart Operations for Manufacturing capability in Oracle Fusion Cloud Manufacturing enables production supervisors to achieve their work center’s production goals by focusing on issues impacting operational performance. AI systems can handle repetitive tasks, freeing up workers to focus on more complex and value-added activities, ultimately making the workforce more adaptable and resilient.

Oracle has been at the forefront of providing AI-enabled cloud application solutions for smart manufacturing. Can you elaborate on how Oracle’s smart manufacturing technologies are helping organizations stay competitive, become more agile, and unlock long-term opportunities?

Oracle’s AI-enabled cloud solutions are helping manufacturers stay competitive by providing real-time data insights and analytics, which allow organizations to make quicker, more informed decisions. The latest enhancements to Oracle Cloud SCM help customers create a smarter, more responsive supply chain by enabling them to optimize planning and execution and improve the speed and accuracy of processes. These technologies offer enhanced visibility across the entire supply chain, facilitating better collaboration between departments and stakeholders. With AI integration, manufacturers can automate routine processes, reducing human error and improving efficiency. For instance, companies using Oracle’s smart manufacturing solutions have streamlined their planning processes, reduced inventory costs, and increased operational agility. A real-world example is Western Digital, which moved to Oracle Fusion Cloud, reducing its global supply chain planning time from 4-5 days to less than two hours. This transformation has allowed them to optimize inventory levels and respond faster to market demands, positioning them for long-term success.

What are some of the practical applications of smart manufacturing technology that are easier to integrate and deploy? How do these applications deliver faster return on investment, particularly in controlling quality, managing inventory, and optimizing supply chain operations?

Some practical smart manufacturing applications that are relatively easy to integrate include AI-driven quality control systems and IoT-based inventory management solutions. For example, AI-powered visual inspection systems can detect defects in real-time, ensuring high-quality production and reducing waste. IoT sensors can monitor inventory levels in real-time, allowing manufacturers to optimize stock levels and reduce costs associated with excess inventory. The latest updates to Oracle Fusion Cloud Order Management enable users to quickly create and find orders, take actions, and engage customers, delivering faster returns on investment by minimizing inefficiencies. These technologies deliver a faster return on investment by minimizing inefficiencies, lowering labour costs, and improving overall operational productivity. Automating quality checks and inventory management helps companies meet customer demands more efficiently while maintaining high-quality standards, resulting in increased profitability and faster payback periods.

Automating quality checks and inventory management helps companies meet customer demands more efficiently while maintaining high-quality standards, resulting in increased profitability and faster payback periods.

Looking ahead, what do you envision as the future of smart manufacturing? How will advancements in AI and other digital technologies continue to shape the manufacturing sector, and what should organizations be doing now to prepare for these changes?

The future of smart manufacturing will be shaped by advancements in AI, IoT, and machine learning, leading to greater automation, real-time analytics, and interconnectedness across all manufacturing processes. As these technologies evolve, manufacturers will have the opportunity to create adaptive, highly efficient production environments that can respond instantly to changes in market conditions and consumer demand. To prepare for these changes, organizations should invest in the necessary technological infrastructure and foster a culture of continuous learning. With new features added every quarter, Oracle Cloud SCM helps customers create a resilient supply network and processes that can outpace change. Equipping the workforce with the skills needed to work alongside these advanced technologies is essential. Additionally, embracing innovation and adaptability will be crucial for navigating the complexities of the digital manufacturing landscape, ensuring long-term competitiveness and success.

Sunil Wahi

Vice President, Applications Solution Engineering, APAC, Oracle

minus@cybermedia.co.in