By Ronnie Lee, Director of Greater Asia Pacific Region Services Sales, Lenovo
The manufacturing sector, as the third-largest carbon emitter in Malaysia, is at a crucial juncture, necessitating transformative changes to reduce its substantial greenhouse gas emissions. Recognising this imperative, the Malaysian government is committed to fostering green manufacturing through the Ministry of International Trade and Industry’s (Miti) i-ESG framework. This initiative is a key component of the New Industrial Master Plan 2030 that outlines a strategic roadmap towards sustainability and achieving net-zero emissions by 2030.
The i-ESG framework integrates Environmental, Social, and Governance (ESG) principles to align industrial growth with global sustainability standards. This involves implementing eco-friendly practices, improving energy efficiency, reducing waste, and enhancing the overall environmental footprint of manufacturing operations. Digitalisation plays a crucial role in this transition.
Benefits of Digitising Manufacturing Processes
Adopting technology-enabled sustainability practices in manufacturing significantly contributes to an organisation’s sustainability goals. Digitised operations allow manufacturers to monitor and optimize energy consumption, reduce waste, and enhance resource efficiency. For instance, smart sensors and IoT devices provide real-time data on equipment performance and energy use. This facilitates predictive maintenance, preventing equipment failures and reducing downtime, further contributing to energy savings and operational efficiency.
Moreover, digitisation enhances supply chain resilience by helping manufacturers anticipate disruptions, optimize inventory management, and streamline logistics. Digital tools and advanced analytics predict demand fluctuations, enabling proactive adjustments to production schedules and inventory levels. This reduces the risk of overproduction and waste, making supply chains more responsive and resilient to changes and unexpected events.
Furthermore, smart manufacturing advances sustainable product design and resource management. For instance, 3D printing minimises material usage through its layered construction method, which utilises precisely the required amount of material. Additionally, it supports on-demand production to minimise inventory waste and enables localised production to reduce transportation emissions. Many 3D printers also use recyclable materials to lower environmental impact and energy consumption.
Challenges to Smart Manufacturing Adoption
Despite the evident benefits, the transition to smart manufacturing in Malaysia faces considerable resistance. A staggering 80% of Malaysian organisations are hesitant to adopt smart manufacturing technologies due to a lack of awareness about the tangible benefits and perceived financial and technical barriers.
Many leaders are intimidated by the upfront costs associated with digitalisation, including investment in new technologies and workforce training. Additionally, there is a lack of understanding of how these technologies integrate into existing processes and the long-term return on investment (ROI).
Overcoming this resistance requires a concerted effort to educate and support organisations, demonstrating the clear link between digital investments and enhanced sustainability and profitability.
Key Factors Businesses Should Consider When Deciding on Technology Investments
When considering technology investments, organisations must evaluate several key factors:
- Alignment with Strategic Goals: Technology investments should align with the organisation’s long-term strategic goals, particularly regarding sustainability and efficiency.
- Scalability and Flexibility: Any chosen solutions should be scalable to accommodate future growth and adaptable to evolving business needs. Flexibility is crucial to ensure seamless integration with existing systems. This allows organisations to expand their capabilities without significant disruptions.
- Cost-Benefit Analysis: A thorough cost-benefit analysis should be conducted to evaluate the potential return on investment (ROI), considering both financial returns and sustainability gains. This comprehensive view helps manufacturers make informed decisions that balance economic and environmental benefits.
- Vendor Support and Expertise: Partnering with technology providers who offer comprehensive support and possess a proven track record of successful implementations is crucial. Such vendors can provide the expertise and resources necessary to navigate the complexities of new technology adoption. This ensures smooth deployment and ongoing operational success.
In this instance, Lenovo, a trusted partner in transformation, exemplifies smart manufacturing success. Ranked tenth in the Gartner Supply Chain Top 25 for 2024, Lenovo utilises AI to boost manufacturing processes, accelerating supply-chain decision-making by 60% and production scheduling by 98%, ultimately enhancing global customer delivery. Committed to sustainability, Lenovo have targets validated in alignment to Science Based Targets Initiative’s Net-Zero Standard and recently released the Lenovo ESG Navigator, a real-time ESG data collection solution.
Lenovo extends its commitment to sustainability and digitalisation by offering end-to-end support to manufacturers. Its Smart Manufacturing Solutions integrates IoT devices, real-time analytics platforms, and AI-driven predictive maintenance systems, helping manufacturers achieve precision, reduce downtime, and meet ESG goals. With tools like Lenovo’s Intelligence Sustainability Solutions Advisor (LISSA), customers gain actionable sustainability insights across their global supply chain.
Additionally, Lenovo’s Everything-as-a-Service (XaaS) approach offers financial empowerment programs such as flexible lease-to-own options and adaptable loan structures. This empowers companies to confidently invest in digital transformation without the obligation of capital ownership, paying solely for their monthly usage as part of operational expenses.
In conclusion, digitalisation is vital for green manufacturing in Malaysia. While challenges exist, the sustainability, efficiency, and resilience benefits are compelling. By addressing the barriers to adoption and leveraging insights from industry leaders like Lenovo, Malaysian manufacturers can transition to smarter, greener operations, contributing to the nation’s sustainability goals.
