The “Brazilian Market Automation Index”, published annually by GS1 Brasil, shows that 60% of Brazilian companies have an ERP, but less than half of them use a platform to optimize warehouse management.
Brazilian industry is becoming increasingly digitalized and automated, however, despite the volume of companies that adopted artificial intelligence in the last year having doubled, going from 4% to 9%, the pace of this progress is still relatively slow. The main barrier is the entire industry's appetite to adopt more digital platforms and processes. This is demonstrated by the “Brazilian Market Automation Index”, a survey carried out by the Brazilian Automation Association – GS1 Brasil.
To change this paradigm of Brazilian industry, Infor, a global leader in cloud management software and specialized in industry, joined the GS1 Brasil Innovation and Technology Center to raise awareness among leaders about the importance and benefits of modernizing their processes. logistics in order to obtain competitive advantages.
“The partnership with GS1 Brasil aims to show visitors to the Innovation Center the benefits of using AI to automate processes. Our experience shows that the use of this technology can reduce order processing times by up to 30% and we have international cases where the application of AI generated annual cost savings with distribution of more than 1.5 million dollars.”, explains Waldir Bertolino , Country Manager at Infor.
Digitization is a process that has been going on for a few decades, revolutionizing many sectors of the Brazilian economy, but the obstacles to reaching digital maturity are still great. According to the study, 60% of Brazilian companies have an ERP, but less than half of them use a platform to optimize warehouse management. Among the systems used by national industries, only 43% use the WMS (Warehouse Management System) to manage stocks and distribution centers.
The research carried out by GS1 Brasil, which covers in detail the adoption and use of automation technologies in the Brazilian market, reveals that the industry is still unable to do the basics in relation to controlling its own stock. Warehouses with low technology and little equalization between demands and production result in problems such as high costs in the supply chain, unbalanced inventories and compromised customer satisfaction.
“The Innovation and Technology Center offers opportunities for those looking to promote advances in the supply chain through automation and innovative technologies. In this environment, Infor contributes to us by demonstrating its solutions to boost the adoption of these new technologies in the national market.” – Virginia Vaamonde, CEO of GS1 Brasil
“Firstly, companies need to do the basics well, that is, have well-structured inventory management that offers control over all warehouse activities. In operations where we implemented Infor WMS we saw fullfilment costs reduce by 15 to 20% and overall productivity increase by 15 to 40%. This is the kind of benefit of digitalization that we want to show with this partnership.” adds Bertolino.
Opening doors for AI in Industry
Expectations surrounding Artificial Intelligence in business are leading companies to invest in cutting-edge technology to accelerate the digitalization of their warehouses. Those that cannot keep up with this movement will lose space in the market.
The adoption of AI, in conjunction with other 4.0 technologies, also contributes to business sustainability, as it can help companies in their mission to reevaluate their production processes, ensuring greater energy efficiency and reducing the waste of natural resources.
“The market is increasingly demanding and is forcing companies to make a commitment to the ESG agenda and seek digital solutions that allow them to have greater control over their activities and greater efficiency in warehouse management. At Infor, we develop our solutions within the AWS ecosystem, whose data centers are 3 to 5x more energy efficient.” says Waldir.
The Infor WMS solution will be available for demonstration by the public and managers who are interested in learning about the features and benefits that the solution can bring to Industry processes for the digitalization of warehouse management, fulfilling the ESG agenda.