{"id":9299,"date":"2018-11-29T13:07:41","date_gmt":"2018-11-29T13:07:41","guid":{"rendered":"https:\/\/za.syspro.com\/blog\/how-plastics-and-rubber-can-use-erp-for-digital-transformation-and-improve-efficiencies\/"},"modified":"2021-03-04T14:50:14","modified_gmt":"2021-03-04T14:50:14","slug":"how-plastics-and-rubber-can-use-erp-for-digital-transformation-and-improve-efficiencies","status":"publish","type":"post","link":"https:\/\/za.syspro.com\/blog\/digital-business-and-erp\/how-plastics-and-rubber-can-use-erp-for-digital-transformation-and-improve-efficiencies\/","title":{"rendered":"How Plastics and Rubber can use ERP for Digital Transformation and Improve Efficiencies"},"content":{"rendered":"Reading Time: <\/span> 2<\/span> minutes<\/span><\/span>

Organizations today operate in a dynamic continuum where the rules of competition and operation are constantly evolving. No industry is immune to the effects of their organizational ecology to properly understand the mechanisms of different manufacturing industries. We cannot just compare the resiliency and responses of segments of the same industry.<\/p>\n

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Regional Processing Manufacturing<\/strong><\/p>\n

Plastics and rubber manufacturing<\/strong> is categorized under the second largest manufacturing group globally,<\/strong> \u2018Regional Processing\u2019, as they are located close to demand points and sources of raw material. Yet the industry displays certain needs which are characteristic of global innovation industries due to the lower level of R&D intensity, high labor intensity, low energy intensity and low value density when compared to other peers in the regional processing group such as fabricated metals and food and beverage. This presents unique challenges for the plastic and rubber industry which has evolved over time and requires a constant pursuit of inflection points to ensure sustainability and relevance.<\/p>\n

One of the major industry challenges is the regulation and environmental protectionism laws. With the overlap of distinct technological revolutions \u2013 Industry 4.0 and the digital economy \u2013 and the additional regulatory changes, the industry is at the epicentre of new age manufacturing processes, with innovation and renovation being key for organizations navigating through these changes.<\/p>\n

The Challenge of Cost Efficiency<\/strong><\/p>\n

A further challenge for the plastics and rubber industry is that of cost efficiency. The competitive factors in the plastic and rubber industry are based on level of technology adopted, scale of operation and market size. However, in recent years, the increase in the prices of raw materials has indirectly transferred to consumers, also making the manufacturers trim their profit lines. This is also the result of globalization, making substitute suppliers proliferate and creating further macro-economic issues whereby manufacturers cannot compete with optimal production capacities.<\/p>\n

These challenges offer opportunities to create efficiencies and improve their processes by both digital transformation<\/a> <\/strong>and automation. Some of which include:<\/p>\n