3 Ways ERP Drives Digital Transformation
Latin American manufacturers and distributors have a long way to go when it comes to incorporating the latest technology into their business practices. Though the region has experienced high levels of urbanization, their technology adoption rates fall behind other parts of the world.
However, this is set to change. Latin American enterprises of all sizes are on the path towards digital transformation. In its index of 60 countries’ digital competitiveness, Harvard Business Review categorized Mexico, Brazil and other Latin American nations as Break Out countries, meaning that their digital infrastructure is rapidly evolving.
One way that manufacturers and distributors are getting set for change is through implementing enterprise resource planning (ERP) software. Designed to manage a full range of back-end processes in a single solution, ERP utilizes cutting-edge technology to promote greater efficiency and visibility. Keep reading to find out how ERP can drive digital transformation in Latin America.
1. Process Automation
Between 2000 and 2015, the productivity across Latin America grew only 0.6 percent, one of the weakest performances in the world. About half of the full-time hours worked in the region could be automated, meaning that there’s ample room for Latin America to boost their productivity through using ERP to automate processes.
Manual, repetitive activities are known to delay supply chains and result in human errors. ERP can automate these menial tasks to make your organization run faster and with more precision. One manufacturer, for example, reduced production lead time from two months to one day after implementing Epicor ERP to streamline workflows. With such incredible improvements in efficiency, customers can obtain their goods in no time, resulting in higher satisfaction. The process automation facilitated by ERP truly transforms manufacturing and distribution performance from top to bottom.
2. Cloud Computing
Small to mid-size businesses (SMBs) in Latin America have long lacked access to ERP because of its expense and complexity. However, the advent of cloud computing has caused all this to change. Cloud ERP’s simplicity and lower price point make it ideal for SMBs that can’t afford the implementation and maintenance costs of on-premises software. The region is experiencing a boom in cloud platforms. With cloud ERP, SMBs can finally ditch legacy IT solutions and pursue digital transformation.
The cloud promotes manufacturing and distribution innovation. Data and reports are available across mobile devices, so users can work efficiently and enjoy full visibility even out of the office. Cloud computing also powers cutting-edge technology, such as artificial intelligence (AI) and real-time analytics. These tools offer deep insights and instant updates to improve decision making.
Furthermore, cloud ERP has the flexibility to grow with your business. Adding new locations and upgrading your software is much easier with cloud ERP than an on-premises solution. Hosting your software in the cloud will get you set for exciting business improvements.
3. Internet of Things
The cloud also fuels greater enterprise connectivity by supporting the Internet of Things (IoT). IoT technology connects products, equipment and other “things” to the internet, generating valuable insights for manufacturers and distributors. Latin America is increasingly investing in IoT, with Mexico, Colombia and Chile forecasted to see the fastest IoT spending growth in the next few years.
However, many businesses aren’t appropriately leveraging the data generated from their IoT devices. Most of this data is unstructured and underutilized. To enjoy the full value of this information, align your ERP and IoT technology. ERP software transforms data into actionable insights, so users can easily capitalize on a wealth of information to make better decisions to improve your business.
IoT and ERP can help you become a truly connected enterprise. Data from sensors will allow users to monitor machine performance and track the shop floor from dynamic ERP dashboards. Insights into your production process can reveal areas of waste or inefficiency. IoT devices can also detect product defects and transfer this data directly to your ERP, improving quality management. Latin American businesses that utilize IoT and ERP effectively can gain a sizable advantage over their competition.
Latin American manufacturers and distributors are making tremendous strides to modernize their enterprise technology. Epicor ERP serves as a strong foundation for digital transformation. Specializing in premier ERP solutions for over 45 years, Epicor knows how to use cutting-edge technology to meet the needs of businesses around the world. In its most recent release, Epicor added AI and IoT tools to maximize productivity.
Datix, an Epicor Gold Partner, will help you utilize advanced ERP features to the fullest. Our certified consultants have over 20 years of experience executing a range of Epicor projects for clients across the globe. We have dedicated resources and partners available to empower Latin American manufacturers and distributors to transform their businesses with software. From start to finish, our ERP experts will work with you to meet your unique needs and optimize your performance.
Get started on your digital transformation journey. Contact Datix today to learn more about our ERP solutions and services!