In today’s manufacturing world, the real problem isn’t material shortages. It’s the digital disconnect between original equipment manufacturers (OEMs) and suppliers.
On one hand, OEMs are investing in expensive enterprise systems. On the other hand, many suppliers still run operations with clipboards, spreadsheets, and printed instructions taped to workstations. That misalignment creates missed deadlines, product recalls, and rising costs.
When suppliers rely on manual methods while OEMs use complex digital tools, communication breaks down, traceability disappears, and quality suffers.
McKinsey estimates that better collaboration across the supply chain could save up to $72 billion annually. But the industry can’t fix what it won’t face: the tech gap is no longer just an IT problem. It’s a threat to performance and profitability.
Shared Problems, Shared Goals
Factories of all sizes are trying to:
- Reduce rework and quality issues
- Improve traceability
- Train new operators faster
- Gain real-time visibility
- Avoid new data silos
Larger manufacturers may struggle with outdated systems, and smaller suppliers often lack the resources or support to modernize. But both want the same outcomes: speed, accuracy, and reliability.
A supplier that cannot trace a defect or adapt to a design change risks its own business and impacts the entire supply chain.
Innovation Can Start Anywhere
Digital innovation doesn’t come only from the top. Small factories often lead in real-time feedback, intuitive UX, and rapid onboarding. That agility matters, especially when frontline workers need to respond quickly.
The entire supply chain benefits when OEMs and suppliers operate on compatible systems. Everyone moves faster.
Building a Common Digital Foundation
What does that look like? A platform that’s:
- Modular and easy to scale
- Integrates with ERP, QMS, or MES
- Fast to deploy (think weeks, not months)
- Designed for frontline users
- Secure and flexible
This isn’t theoretical. At MORryde International, a digital rollout helped eliminate paperwork and speed up training. A new error-proofing system at HJI Supply Chain Solutions helped secure a contract with a major Tier 1 automotive OEM.
No custom software. No major IT overhaul. Just results.
Don’t Wait for a Mandate
The next generation of supply chain leaders will be the ones who move quickly, solve problems early, and build for every tier. That starts by closing the digital gap, factory by factory.
Ryan Kuhlenbeck is CEO of Pico MES.
