Digital transformation trends in manufacturing and retail sectors

Manufacturing and retail sectors are navigating the complexities of digital transformation (DX) and evolving operational standards. In manufacturing, the traditional view of inventory as a purely negative asset is shifting. Due to global supply chain volatility, companies are increasingly viewing strategic inventory as a necessary buffer against uncertainty, while simultaneously seeking ways to minimize excess stock to protect cash flow.

In the retail sector, the push for DX has introduced new cybersecurity vulnerabilities. Common practices, such as using shared IDs during busy periods or employees using personal smartphones and unauthorized generative AI to analyze sensitive company data, create significant security risks. These ‘shadow AI’ and credential-sharing habits can expose confidential information like sales data and employee details.

Meanwhile, Aichi-based control panel manufacturer Sankyo Denki has successfully utilized DX to transform its business model. By automating approximately 90% of routine tasks, the company has improved its profit structure and moved toward its goal of achieving an annual employee salary of 7 million yen.