THE STORY

IMPELMEX SA DE CV is a leading Mexican company in the water treatment solutions industry based in Mexico City. The firm is recognized for its products' excellence, focus on sustainability, and personalized attention to its customers. It has positioned itself as a benchmark in the national and international markets. In 2023, IMPELMEX began its digital transformation journey. Partnering with Technology Coast Partners (TCP), the company implemented Epicor Kinetic ERP and SugarCRM, integrated through the Fluent Integration Platform.

This initiative, led by Juan Pablo Ortega, the company’s General Manager, aimed to streamline operations, improve efficiency, and drive substantial growth and expansion over the next five years. It began with the optimization of its production processes, the management of customer relations, and the training of its human resources and work teams to stay at the forefront of its industry by unleashing the power of its ERP to take the business to the next level and to maximize the use of its data.

This Case Study examines the challenges, solutions, and results of this digital transformation and how to see an immediate acceleration of the ROI using Epicor Kinetic Cognitive ERP in perfect synchronization with SugarCRM.

Company Overview

Founded in 1970, IMPELMEX is a fast-growing, medium-sized manufacturer specializing in water treatment and handling equipments. It operates in three business areas: water pumping, wastewater, and water purification systems. It is ISO 9001 and CSA (Canadian Standards Association) certified. In 2022, the company partnered with Ashland Water Group, a Chinese-American consortium, to expand into the US retail market by manufacturing high-volume products, with an immediate target of 100,000 units per year and possibly reaching 500,000 in the medium term.

As a medium-sized ETO (Engineer-to-Order), MTO (Make-to-Order), and MTS (Made-to-Stock) manufacturer on a fast-growth path, with the digital transformation of its manufacturing and marketing processes, IMPELMEX will remain at the forefront of its industry by streamlining every part of its business.

THE CHALLENGE

IMPELMEX faced several challenges to boost its growth and expansion:

Manual Processes: Paper-based manual processes, especially in the processing of orders and purchase orders, caused delays and the risk of human error, which impacted production timelines.

Limited visibility: The lack of unified data and real-time information made decision-making and inventory management difficult. Forecasts were based on historical data and customer estimates, sometimes leading to shortages in stock availability or overstocking.

Scaling for growth: Rapid expansion in the retail market required a scalable and efficient system to manage the increased volume and complexity of operations due to the nature of its products, which require a wide variety of combinations of both local and imported components. Systems and processes needed to be optimized to manage this growth.

Complexity of financial information: Due to the dynamics of the business, the recognition of income based on long-term projects and the variation in the timing of costs posed difficulties in accurately reflecting the company's financial results, especially for its US-based partners while complying with local regulations and standards.

Ineffective sales processes: The lack of a solid CRM system made it difficult to monitor sales; there was limited knowledge of customers, and opportunities were being missed.

THE SOLUTION

To meet these challenges, IMPELMEX implemented Epicor Kinetic and SugarCRM, which were integrated by TCP using the Fluent Integration Platform.

ERP Epicor Kinetic: To streamline manufacturing, inventory management, purchasing, and finance; provide real-time visibility into operations; automate key processes and enable improved forecasting and planning.

SugarCRM: To automate sales processes, optimize customer relationship management, and provide better information on sales opportunities and performance. Integration with Epicor ensured the flow of data between sales and production teams.

Fluent Integration Platform: For perfect integration between Epicor ERP and SugarCRM, guaranteeing data consistency and real-time updates between both systems and optimizing the work between the sales and production teams, as well as other areas of the company.

RESULTS

Implementation of the technological solutions was considered simple and satisfactory. It was carried out within the planned time frame and budget. The main results include:

Improved decision-making: Real-time data and advanced analytics enabled managers to make more informed decisions regarding inventory, production, and sales, as well as future investments, translating into improved business performance.

Process optimization: Streamlining the order-to-cash cycle, improving inventory management practices, manufacturing processes, and sales forecasting capacity. Automating manual tasks and processes reduced errors, increased efficiency, and free time for more strategic activities.

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Juan Pablo Ortega, General Manager of IMPELMEX, points out that in the manufacturing area, the system significantly impacts the people who work in the process. "It is much easier for them to do it now. We have always had good control in the manufacturing area. But now, changing from 200-line Excels of three weeks' production, visualization and how to schedule production is much easier for PPCP and manufacturing people."

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Streamlined order processing: Order processing time was reduced from days to hours, thanks to the automated flow of information between SugarCRM and Epicor ERP.

Better inventory management: Access to up-to-date and consistent information in real-time optimized management of the complex supply and storage chain inherent to the business due to the variety of its products and the number of components involved in the production process.

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With the move to a larger plant and the existence of three warehouses and one in Mexico City, inventory control is critical (...) everything is already loaded, and with simple part codes and barcodes, you know where it is, where it's going, where to put it. The new inventory distribution will also be easy to manage, thanks to the system. Our products are not simple, we have multiple versions, and now the sales team can choose how they will sell the product, and the system sends it directly to production. All of this has helped us a lot", explains Juan Pablo Ortega, General Manager of IMPELMEX.

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ROI Acceleration: Real-time inventory visibility enabled improved planning, reduced inventory shortages, and optimized purchasing decisions. Thanks to improved supplier benchmarking and purchasing management, a key product line experienced a 9% cost reduction.

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“The comparisons we are making in terms of suppliersare considerable. For example, with the Control Box product, which in 2024 meant a turnover of between PMX 45 and 50 million (US$ 2.4 million), we have been able to reduce our total cost by approximately 9% due to these comparisons, which Epicor is allowing us to have in error control .”Juan Pablo Ortega, IMPELMEX General Manager

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Improved sales process: SugarCRM implementation improved sales team follow-up, opportunity management, and sales forecasting. It also provided valuable customer information, enabling improved segmentation, increased sales conversions, faster order fulfillment, improved customer communication, increased customer satisfaction, and strengthened relationships.

Improved financial reporting: Epicor ERP enabled the creation of both fiscal and operational financial statements, providing US partners with a clearer picture of the company's financial performance in line with business dynamics while complying with local tax system (SAT) obligations.

Increased operational efficiency: Digital transformation has streamlined operations across all areas, resulting in increased efficiency and productivity. The rationalization of processes, the reduction of delivery times, and the improvement of inventory management have allowed for cost savings and increased operational efficiency.

Improved profitability: Profit margins increased significantly from 3-4% to an expected net profit of over 12% in 2024, a significant increase over previous years.

Flexibility and scalability: The platform's flexible architecture has enabled efficient implementation and customization according to the organization's requirements, allowing the project development within the estimated time and budget.

Satisfied employees: Employee feedback has been positive, and users consider the system easy to use and effective. The platform's versatility facilitates adoption and effective use by administrative and operational employees.

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Juan Pablo Ortega, General Manager of IMPELMEX, comments, "Implementation was easier than I expected. The process was very simple. With the TCP consultants, everyone understood it quite well. The training was very clear and easy to implement compared to the experiences I had heard of other systems. The company is already operating 100% in Epicor, and we are just getting started."

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THE FUTURE OUTLOOK

IMPELMEX plans to leverage its digital transformation initiatives further to achieve ambitious growth and expansion goals. Key priorities include:

Expanding market reach: New market penetration, including the Mexican residential and retail markets and exports to Central America; continued growth in the US retail market with its Chinese-American partner.

Off-shored production: Move 20-30% of its US partner's production from China to Mexico to increase exports to the United States.

E-commerce platform: Once the residential product line's manufacturing and marketing are up and running, consider implementing the Aleran Software e-commerce platform for manufacturers.

KEY TAKEAWAYS

The successful implementation of Epicor Kinetic Cognitive ERP and SugarCRM and their integration with TCP's Fluent Platform has proven to be a game changer for IMPELMEX, Mexico. The company has significantly improved its operational efficiency and competitiveness by embracing digital transformation in alliance with a capable and

experienced implementation partner. IMPELMEX has positioned itself for continued success in the years to come.

This case study highlights the importance of a well-planned and executed digital transformation strategy for mid-sized manufacturers looking to scale their operations and compete effectively in an increasingly competitive global marketplace.

By sharing this case study, Technology Coast Partners (TCP) wants to inspire other organizations to embark on their own digital transformation journeys.