The new direction of the Industry

Nuno Figueiredo Abaco Consulting

Nuno Figueiredo
Board Member at Abaco Consulting

Opinion Article by Nuno Figueiredo, Board Member, Sales & Marketing Director for IT Insight [PT Only]: https://www.itinsight.pt/news/opiniao/o-novo-rumo-da-industria

It is a fact that this pandemic has demonstrated many weaknesses of an increasingly global economy and has become, in many cases, an acceleration element for the digital transformation, not only of organizations but of society itself. And proof of this is the Manufacturing sector, in which technological advances and innovation are growing at an ever faster pace.

 

Currently, companies face competition from more “traditional” countries and also from new countries, which have low-cost production, while trying to respond to the needs of emerging markets, especially in emerging markets in the developing world. These difficult conditions mean that the number of companies in all sectors continues to decline, with the rest facing increasing competition. Likewise, the complexity of highly distributed and constantly changing business networks creates a challenging environment for industries, in which it is not enough to produce, it is necessary to go further, foreseeing scenarios and developing immediate responses to possible non-compliances.

In this context, there are several technological tools that organizations must implement so that they can monetize their business, namely with the implementation of an ERP (Integrated Management Software) that allows, in real time, to obtain all the data that managers they need (and anywhere), contributing to act accordingly, and on time, in case any aspect of the business is not showing the expected rates. ERP thus allows organizations to reduce their costs, obtain greater total control of purchases and sales and also strategic planning over all production points, thus maximizing the efficiency of the production process and leading organizations towards profitable growth. Thus, through its use, companies have a system with all the information centralized, resulting in a saving of resources and time.

Currently, ERP, through artificial intelligence, enables better performance, transforming organizations’ business processes, with a reduction of up to 50% of the data footprint and extraction of reports up to 100 times faster. In addition to these benefits, it also provides real-time graphical data analysis – to support decision-making -, displays data in a simplified way – by eliminating aggregates and indexes -, allows better workflows, through specific business processes for each industry, and improves the user experience on different types of devices, reducing errors and increasing productivity, among others.

 

However, what are the benefits of implementing an ERP?

  • Improve production planning: Coordinate manufacturing operations from material requirements to stock – while adjusting plans based on real-time information from your company, supply chain and shop floor.
  • Supports complex assembly processes: Enables the creation of efficient plans for complex assemblies, covering areas such as material requirements, production and capacity planning, as well as bills of materials, road maps, factory layout and machine models.
  • Speeds up production operations: Optimizes production and material flow, enabling flexible and efficient production processes using methods of control, continuous improvement and just-in-time replenishment.
  • Supports manufacturing engineering: Increases quality and reduces costs by promoting collaboration between R&D and manufacturing teams with relevant data and transfers of engineering documents, bills of materials and design changes.
  • Improve quality management: Allows you to take rapid action to prevent or correct problems by executing closed-loop quality management processes – from planning to operations – to support continuous improvement across the enterprise.

In this way, technology contributes to the modernization of the management adopted by any organization in this sector, as well as to an improvement in the productivity of the factory and of all employees. In this sense, it is essential that organizations review their business models and implemented technologies so that they can keep up with constant technological evolutions.

The future is now, shall we?