Semiconductor firm adapts modern ERP to boost productivity

As automation and digitalization become a significant part of today’s workplaces, electronic and semiconductor subcontracting group EMS embarks on another change as it aims to empower its workforce with modern enterprise resource planning (ERP) system.

The project, a part of the company’s digital transformation strategy, aims to strengthen EMS Group’s productivity by upgrading its systems with SAP S/4HANA, which will be hosted on the Fujitsu Cloud to enable EMS Group’s cloud integration and Hybrid IT strategy.

As a fully integrated ERP system, SAP S/4HANA allows organizations to utilize artificial intelligence (AI) to transform business processes both in the cloud and on-premise. It will also improve business operations by automating its systems and reducing manual processes.

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With the modern ERP system in place, EMS will now have a credible source of information across companies within the finance, procurement, inventory, operations, engineering, quality, and maintenance processes. The system will also improve financial reporting and analysis by accurately capturing and recording all cost revenue information across several revenue streams.

Industrial revolution

EMS also considers this project as one of its ways to activate its Fourth Industrial Revolution (FIRe), or the IR 4.0, digital transformation journey. “It may sound cliché because we have repeatedly talked about it but, the Industrial Revolution (IR 4.0) is now right in our doorsteps. Our adoption of the new ERP system, which utilizes AI and Cloud, is one of our ways to prepare for it.

“The FIRe, essentially, refers to the overall shift toward digital platforms. Modern digital technologies and applications will transform nearly every industry and sector, including the semiconductor and electronics industry. “We have been planning to integrate this modern ERP system for five years before we decided to partner with Fujitsu. We want to set an example for Filipino companies, that as we move to IR 4.0, we can empower, maintain, and even grow our more than 17,000 workers with technology as it will attract more business,” said Ferdinand Ferrer, chair and CEO, EMS Group.

Integrated digital system

“From a semi or mostly manual processes to now having a fully integrated and digital system to tackle them, is a big change for us, even for our operators, which compose 92% of our total workforce,” he said. “Acceptance will be the biggest challenge. SAP S/4HANA is already a tried and tested system but, the way we adapt it internally will dictate our transformation moving forward.”

Ferrer noted that it is important to maintain the collaboration within the departments and all levels in the organization. It is critical to let all the employees understand the benefits of the new system, including the opportunity of learning new skills needed in utilizing the system.