Digitalization across all industries has never been more of a hot topic.
Implementing digital tools and solutions is crucial in all industries, from finance to real estate, education, and human resources. It not only ensures faster workflows and more effective resource use but also helps companies stay ahead of the competition and achieve higher rates of return on investment.
Digitalization in manufacturing, on the other hand, has had a much slower adoption rate due to complex workflows of the supply value chain, compliance and security needs, and their generally traditional style of working.
However, due to significant pain points and the global environmental, social, and governance (ESG) guidelines and trends, the manufacturing sector has been compelled to reevaluate its overall processes and impact, leading to gradual changes in systems and tools aimed at digitalizing workflows.
Manufacturing companies face many challenges due to the complex nature of their workflows and stringent requirements. These complexities can create inefficiencies that require people to step in, consuming valuable time and resources.
Some of the main issues that are common in the modern manufacturing industry include:
Turning to digital solutions to address these challenges is part of the current digitalization trends we see within the sector today.
Current digitalization trends across manufacturing supply chains and industries involve the implementation of various advanced technologies, such as:
These digital tools represent just a fraction of the technology and software embraced to streamline operations, enhance productivity, and maintain competitiveness in the rapidly evolving manufacturing sector.
When it comes to e-signature tools, major companies, including CHIMEI, Pfizer, and LeadTek, have already implemented them and experienced numerous benefits. These advantages include maximized efficiencies, significant cost savings, and progress toward fulfilling their ESG goals.
ESG factors are vital in manufacturing, focusing on reducing environmental impacts, ensuring fair social practices, and maintaining strong governance. The EU, in particular, has specific regulations, including the “climate policy.”
E-signature (or electronic signature) is one of the tools the manufacturing industry can implement to ensure compliance with these regulations and keep doing business. Manufacturers face significant pressure to prioritize ESG to meet stakeholder demands, manage risks, and stay competitive.
An e-signature is a digital way for someone to show that they approve the contents of an electronically sent document. In simple terms, it includes any online method that indicates someone agrees to a record or agreement, showing their intention to sign the electronic document.
The Electronic Identification, Authentication, and Trust Services (eIDAS) regulation outlines three levels of electronic signatures: simple electronic signature (SES), advanced electronic signature (AES), and qualified electronic signature (QES).
Source: DottedSign
Each type builds upon the requirements of the one below it, meaning that a QES meets the most criteria while an SES meets the fewest.
SES is considered the simplest type of e-signature available. It is recommended for everyday transactions and does not require strong signer authentication or ID verification. SES carries legal weight in some cases for legal compliance, but most documents would require higher qualifications to be met.
Use case: Approve internal documents such as daily production reports, training registers, and shift handover notes.
Example: A factory manager uses an SES to electronically sign off on a daily production report circulated via email among all relevant team members. This quick approval process speeds up communication and distribution without needing physical signatures.
AES significantly improves signer identification through thorough identity verification, typically validated by a trusted certificate authority (CA). This process creates a unique link to the signer, ensuring complete control over the signature.
AES often provides an audit trail or other evidence of data transmission, offering a secure and legal method for e-signing.
Use case: Sign contracts and master service agreements (MSAs) with suppliers or vendors regarding the procurement of materials.
Example: A manufacturing company utilizes an AES to securely sign a contract with a raw materials supplier. Using an AES ensures the signer's identity is verified and the signature linked to the contract is authentic, providing higher security and traceability than SES.
Just like an AES, QES enables the identification of a signer. However, a QES calls for additional requirements outlined in the electronic identification and trust services (eIDAS). These include prior identification of the signatory by an audited entity, like a CA, and a digital certificate based on PKI issued with proper electronic means.
In other words, a qualified signature creation device (QSCD) is used to create a digital certificate, which must be issued by a trust service provider (TSP) on the European Union Trust List (EUTL).
Use case: Signing safety and compliance documents or regulatory paperwork that require stringent legal recognition.
Example: When manufacturing companies need to submit safety compliance certifications to regulatory authorities, they should use a QES to sign the documents. This ensures the documents are valid, legally binding, and meet all regulatory requirements.
The types of e-signature solutions used are:
The risks of not using an e-signature solution far exceed the initial time and costs of implementing one, and the benefits can be seen instantly.
Today, many e-signature providers offer affordable and user-friendly options for businesses of all sizes. These options allow immediate use without complicated setup processes.
Risks of not using an e-signature solution in daily manufacturing business workflows include:
Benefits of using e-signatures in the manufacturing sector include:
Source: DottedSign
In addition to evaluating the different types of solutions available, part of the selection process involves identifying key functionalities that you require your e-signature solution to have.
Some of these essential functionalities to consider include:
By prioritizing these key functionalities, you will know exactly which e-signature solution best fits your workflows.
Choosing the correct solution can streamline your manufacturing document workflows, enhance collaboration with suppliers and partners, and ensure legal compliance - all while reducing costs and paper waste.
E-signatures are essential for different areas of the business.
Implementing e-signs across various departments for internal and external stakeholders in your manufacturing business is advisable. Each department has unique documents and signing requirements, so adopting an e-signature solution can help streamline these signing workflows effectively.
Source: DottedSign
E-signatures facilitate more efficient communication and agreement processes across the entire supply chain. It helps reduce delays in supplier contracts, logistics agreements, and quality assurance documents, leading to improved operational efficiency and better supplier relationships.
Key documents e-signatures can be used for:
E-signature tools help digitalize and automate HR processes such as onboarding, policy acknowledgments, and benefits enrollment. E-signature solutions also ensure high levels of compliance with labor laws and internal policies by providing easily accessible, time-stamped records of employee agreements and consents.
Key documents e-signatures can be used for:
E-signature accelerates sales cycles by allowing customers to sign contracts or documents quickly and remotely. This improved process leads to faster deal closures and increased customer satisfaction, increasing sales revenue and reducing administration time.
Key documents e-signatures can be used for:
E-signature tools expedite the execution of legal documents, saving time and resources while maintaining legal validity. They also provide a clear audit trail, which is crucial for dispute resolution and compliance with regulations for the United States like the eSign Act, UETA, and the European Union, which eIDAS primarily governs.
Key documents e-signatures can be used for:
Traditionally, the procurement workflow requires physical paperwork and manual signing. An e-signature solution eliminates this paper-based process, significantly reducing printing, scanning, and mailing documents. This leads to faster turnaround times and increased efficiency in the procurement process. It is a way to speed things up, as collecting signatures no longer requires a lot of back-and-forth.
To accelerate the procurement process by enabling quick approvals and contract signings, reducing delays in vendor onboarding and purchase orders. They also help maintain accurate records of agreements and terms, ensuring better contract management and compliance.
Key documents e-signatures can be used for:
E-signature tools help simplify IT processes, reduce physical paperwork, and increase efficiency in areas like change management and access control. They also improve security and compliance by providing an auditable trail of approvals for critical IT operations and policies.
Key documents e-signatures can be used for:
E-signature tools enable teams to quickly obtain approvals for campaigns, external agency collaborations, brand assets, and content releases. Securing permissions and rights for using third-party content, influencer collaborations, and agency MSAs is now much smoother, ensuring legal compliance and faster time-to-market for marketing initiatives.
Key documents e-signatures can be used for:
You don’t just have to take our word for it. Let’s look at some real-life examples of how e-signature solutions have changed how manufacturing companies operate.
Pfizer is a leading global pharmaceutical company that develops and manufactures medicines and vaccines. They strongly focus on research and development to bring innovative therapies to patients worldwide.
Pfizer faces challenges managing the extensive documentation required for clinical trials, regulatory submissions, and quality control processes. Compliance with strict regulations such as the Code of Federal Regulations is crucial but can be time-consuming and error-prone with paper-based systems.
Pfizer has implemented an e-signature solution to streamline their document workflows. Using e-signatures, they can securely sign and approve documents such as clinical trial protocols, drug registration applications, and batch records. This ensures data integrity, enhances collaboration among teams and partners, and helps maintain compliance with regulatory requirements.
Pfizer has significantly improved overall productivity in its document-intensive processes. They have reduced the time and resources required for printing, signing, and delivering physical documents. The robust security features of their e-signature platform, including user authentication and audit trails, have strengthened their compliance effort.
LEADTEK Research Inc., founded in 1986, is a globally renowned computer and smart medical research and development (R&D) manufacturer and a long-term partner of NVIDIA.
LEADTEK faced significant challenges with paper-based signatures, including the need to physically transfer signed documents back to headquarters, which prolonged the signing process and made it difficult to track progress. Additionally, filing signed documents consumed valuable time and storage space.
To address these pain points, the company implemented an internal digital system supported by management, utilizing an e-signature solution for its backend processes. This transition has dramatically improved cross-department communication and streamlined operations.
With the help of e-signature, the warehousing department has streamlined its shipment process, reducing the time needed for each shipment and resulting in more efficient use of person-hours.
Additionally, the move to e-signatures has led to a 30% reduction in paper usage, supporting sustainability efforts. The electronic processing of documents has also significantly sped up approval times, minimizing lengthy approval chains and decreasing the likelihood of lost documents. Overall, these enhancements have contributed to a 10% reduction in shipping operation time, improving overall efficiency within the department.
Dilawri Group, Canada's largest automotive group, has 82 franchised dealerships representing 38 global brands in Canada and the US. They offer their customers various vehicles, services, and financing options.
Dilawri Group faces challenges in managing the extensive paperwork involved in vehicle sales, financing, and service contracts. Ensuring accurate and timely completion of these documents is crucial to providing a seamless customer experience and maintaining compliance with regulations.
Dilawri Group has implemented an e-signature solution to digitize their document workflows. By using e-signatures, they can securely sign and approve sales contracts, financing agreements, and service records electronically. E-signatures have streamlined its processes, reduced errors, and enabled customers to sign remotely.
By adopting e-signatures, Dilawri Group has significantly improved the efficiency of its document management processes. Results show reduced time and costs associated with printing, storing, and retrieving physical documents. The electronic audit trails and security features of their e-signature platform have also contributed to their compliance efforts and reduced the risk of disputes. They have also noted that customers appreciate the convenience and speed of signing documents electronically, which improves satisfaction and loyalty.
It is clear that e-signature tools play a vital role in transforming the manufacturing sector.
Manufacturers need to remain competitive in a fast-paced market. Embracing advanced technologies and digital tools fosters greater agility and responsiveness, allowing businesses to adapt quickly to ever-evolving demands and improve team collaboration.
Integrating e-signatures and digital solutions simplifies document management and paves the way for a more innovative and sustainable future in the manufacturing industry.
Ready to go paperless? See which e-signature tools made our 2024 list!
Edited by Shanti S Nair
