Digitalization of business processes at the cable company: the key to increasing competitiveness


Igor Еrgunov, Director of 1 C Practice, Odyssey Consulting Group:

«In recent years, the global cable industry has faced increased global competition, rapid technological change and geopolitical instability. In light of these factors, increased efficiency, innovation and the ability to adapt quickly to changing market conditions are required. Particular attention should be paid to tracking trends, rapidly digitalizing business processes and adapting the product range to new market demands».

The global cable industry continues to grow strongly, projected to grow 3-5% annually over the next five years. The key growth drivers are urbanization and global infrastructure development. Increased investment in smart upgrades, power transmission and distribution systems, and smart grid development will actively drive market growth. Defining aspects for the cable industry include:

  • Investing in research and development of new products to meet market demands, including increasingly relevant environmentally sustainable solutions.

  • Maintaining a high level of quality that meets stringent standards, including quality control at all stages of production, certification, and compliance with technical standards.

  • Implementing marketing strategies and promotional initiatives to maintain relationships with current customers and grow business.

  • Finding new market niches and sales channels, including international platforms and creating marketplaces for cable products.

On the other hand, optimizing production processes and improving operational efficiency through production cost management in a highly competitive environment is no less of a challenge.

  • Metals, insulation and other materials, the price of which is subject to market fluctuations, constitute a significant part of the cost of production, which requires regular updating of cost calculations to manage the overall profit of the company or for a specific order.

  • Labor cost accounting is also an important aspect. It is becoming increasingly important to determine the exact time spent on each production operation, which may require the installation of sensors on equipment.

  • One of the key areas for improvement is optimizing equipment setup, along with its role in cost and order fulfillment rate. Choosing the best strategy has a critical impact on business objectives in either scenario: minimizing downtime, reducing waste or speeding up order fulfillment.

To increase competitiveness it is necessary to strictly control the timing of raw material delivery, minimize costs and optimize the use of equipment to reduce the final cost of production. The new reality of cable plants implies competition not only in terms of price and quality, but also in terms of meeting deadlines for fulfilling orders. Enterprises must be flexible and promptly introduce new brands and types of products. In this context, it is important to correctly use available business tools to maintain competitiveness in the market.

Odyssey Consulting Group has developed "Cable Designer" and "Columbus:Cable" for the cable industry, capable of meeting the above requirements. The solutions are based on the high-tech platform 1C:Enterprise as a supplement to 1C:ERP and incorporate international best practices and consideration of individual needs of cable companies. 

"Columbus:Cable is a modern system based on 1C:ERP with improved functionality in terms of planning, order aggregation, warehouse management module, input and output quality management, inventory and other units, taking into account specifics of cable plants. This system allows to automate key business processes, improving efficiency and controllability of cable production.

"Cable Designer" is an innovative solution that automates the calculation of technological and economic indicators to determine the cost and retail price of the product. The solution offers the ability to automatically form the main parameters of new products, starting with the name and ending with all the semi-finished products produced in the process. Thanks to this system, the commercial department quickly receives preliminary calculations, which allows it to make weighted decisions on new deals quickly and efficiently.

To summarize, in order to maintain competitiveness and keep up with the demands of the times, key players in the cable industry must continue to invest in research and development, implement innovative technologies and prioritize sustainability to meet the ever-changing demands of various sectors of the economy. In addition, as the industry evolves and encounters new challenges and opportunities, the level of business process development will play a critical role in maintaining consistent product quality, which in turn will drive growth and improve business positioning.

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