Enable IoT and AI
”Forterro’s study showed that 93% of Swedish medium-sized manufacturing companies are already using hybrid or cloud-based ERP systems, which is the highest proportion of cloud-based business systems in our study in Europe. Yet 80% say that their own organization’s lack of effective cloud use means they do not see the benefits of technologies such as AI and IoT, while 77% say that the cloud is an untapped opportunity for their company.
AI and IoT have proven to be incredibly important for manufacturers across Sweden. AI is enabling manufacturers to automate many tasks across their operations, on the production floor and in a variety of areas. IoT is similarly transformative. It will enable manufacturers to collect data from equipment and machinery and use the information to identify areas for improvement and trends.
By adapting an ERP to IoT solutions, it is easier to monitor and share production data, which can simplify demand forecasting and improve overall efficiency.
The Drive for Sustainability
It has never been more important to operate in a sustainable way. The manufacturing industry is a sector that has been slower than others in this regard, and manufacturers are under pressure to catch up.Forterro’s survey shows the extent to which Swedish manufacturers are now focusing on sustainability, with 76% saying it is a priority. 78% said their organization has a dedicated resource to manage sustainability, while 69% said they have a Net Zero plan.
ERP can help mid-sized manufacturers improve their sustainability efforts by making it easier to manage resources efficiently, reduce waste, manage inventory, and maintain compliance with environmental regulations. 81% of t respondents said that ERP helps their organization operate more sustainably.
The study also found that 72% of mid-sized Swedish manufacturers have reported increased profitability as a result of working more sustainably, making it a wise decision to use ERP in this way.
Protects the Supply Chain
All manufacturers are certainly aware of the global political turmoil that has affected supply chains. For manufacturers in Sweden, this is especially true, given the proximity to Ukraine.
The biggest challenges for Swedish mid-sized manufacturing companies were identified as the ongoing global economic and political uncertainty, as well as protecting the supply chain. As a result of supply chain concerns, 82% of respondents have digitized the supply chain and logistics to promote transportation efficiency.
As supply chains come under increasing pressure, cloud-based ERP systems are the best tool to create full visibility and empower manufacturers to take action for greater control. The global ERP market is expected to reach SEK 1,358 billion ($123.42 billion) by 2030, so its importance is obvious. And with manufacturers needing to produce business sustainably, maintain control over their supply chain, and maximize the potential of AI and IoT, ERP is more important than ever.
By Anders Gidlund
Principal – Product Management
for Jeeves ERP at Forterro
