In the context of globalization, Taiwan’s manufacturing industry faces numerous challenges in maintaining and enhancing its competitive edge. Faced with rising costs, operational inefficiencies, and technological constraints, robotic process automation (RPA) and intelligent automation (IA) solutions have emerged as key tools in driving transformation and optimizing production processes.
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Operational barriers in Taiwan’s manufacturing industry
Taiwan’s manufacturing sector, recognized as one of Asia’s industrial powerhouses, is currently facing significant operational challenges.
High labor costs
Labor costs in Taiwan are steadily increasing due to the demand for skilled workers and specialization in production. According to Taiwan’s Ministry of Labor, the minimum wage rose from NT$23,100 in 2018 to NT$27,470 in 2024. This represents an 18% increase over six years. These rising costs are becoming a major burden for manufacturing companies, pushing the need to optimize operations and reduce reliance on manual labor.
Intense competitive pressure
According to the Institute for Management Development (IMD), Taiwan’s global competitiveness ranking dropped to 8th place, a decline of two spots from the previous year. The National Development Council (NDC) attributes this decline to global inflation and high interest rates in 2023, which weakened end-user demand. Taiwanese enterprises are under pressure to continuously improve productivity and quality. As a result, they are seeking optimization solutions to maintain their market position.
Shortage of specialized employees
As technology evolves, the demand for specialized skills in areas like systems management and automated production increases. However, many Taiwanese companies struggle to find and retain personnel capable of meeting these high standards.
Outdated Technology systems
Approximately 45% of Taiwanese manufacturing companies still use outdated technology systems, according to PwC Taiwan. Continuing to operate these systems not only increases maintenance costs but also hampers their ability to adapt to rapid technological and market changes.
Automation to enhance performance and optimize manufacturing operations
RPA and IA have emerged as optimal solutions for Taiwan’s manufacturing sector. Automation not only reduces dependency on labor but also enhances efficiency, accuracy, and flexibility in operations.
Automation can be applied to various areas of the production chain:
- Order processing: RPA can automate the order processing workflow, from receiving information, confirming orders, checking inventory, to arranging shipments.
- Order tracking: IA enables real-time tracking of goods during transport and distribution, providing accurate data and giving managers a comprehensive view of the entire process.
- Inventory management: Automation continuously updates inventory, forecasts demand, optimizes stock levels, and automatically suggests purchasing plans. This helps companies avoid overstocking or shortages.
- Quality control: With IA, automated inspection systems can detect product defects in the early stages of production, reducing errors and repair costs.
- Data entry and reporting: RPA minimizes human errors in data entry while generating detailed reports on production performance without employee intervention.
- Payroll processing: Payroll calculations, payments, and invoice handling can be fully automated, reducing errors and enhancing accounting efficiency.
- Account payable: RPA assists in managing payments to suppliers, minimizing mistakes and ensuring a smooth and efficient payment process.
Read more: Unleashing The True Potential of Smart Manufacturing in Taiwan with AI and Automation
Success stories: Automation in Taiwanese manufacturing enterprises
A prime example of successful RPA and IA implementation in Taiwan’s manufacturing sector is TSMC. According to TSMC’s 2021 annual report, the world’s largest semiconductor manufacturer increased production efficiency by 20% while reducing defect rates to less than one part per million.
Another example is Delta Electronics, a leading electronics manufacturer that implemented automation in its supply chain management. According to IBM, after deploying RPA, Delta reduced order processing time by 40% and improved demand forecast accuracy by 25%.
These success stories not only demonstrate the effectiveness of automation but also serve as inspiration for other Taiwanese manufacturing companies. In the era of Industry 4.0, adopting RPA and IA has become essential for optimizing operations, boosting productivity, and reducing operational costs. This direction enables Taiwan’s manufacturing sector to maintain its competitive advantage and achieve sustainable growth.
References:
Robotic Process Automation in Manufacturing: Benefits, Use Cases, and Examples
50+ use case & examples of Intelligent Automation for the Manufacturing industry
akaBot (FPT) is the operation optimization solution for enterprises based on the RPA (Robotic Process Automation) platform combined with Artificial Intelligence, Process Mining, OCR, Intelligent Document Processing, Machine Learning, Conversational AI, etc. Serving clients in 21+ countries, across 08 domains such as Banking & Finances, Retail, IT Services, Manufacturing, and Logistics…, akaBot is featured in “Voice of the Customer” for Robotics Process Automation” by Gartner Peer Insights, G2, and ranked as Top 6 Global RPA Platform by Software Reviews. akaBot also won the prestigious Stevie Award, The Asian Banker Award 2021, Everest Group’s RPA Products PEAK Matrix® 2023, etc.
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