Torrent Group digitizes internal operations to better face the future

Miguel Llorca Gómez joined Grupo Torrent three years ago, and since then, his role as CIO, and the entire IT function, has expanded to enable significant transformation of the company. “Previously, IT was a support function under the financial area,” he says. “But today, digital transformation is integrated into the management committee and reports directly to the CEO.”

This evolution has allowed IT to closely align with the strategic objectives of the business, becoming a driver of innovation and efficiency. As part of the change, in a competitive sink or swim industry, Grupo Torrent has implemented Microsoft Dynamics 365 for its new ERP system. Thanks to this, the company has integrated and optimized all of its business processes, from supply chain to quality management. “This transformation has not only modernized our operations, but prepared the company for the challenges of the future.”

Gómez correlates the business transformation with how the CIO role has grown into strategic business leader and integral decision-maker, someone who identifies new opportunities to innovate. “This means my team and I aren’t only focused on technology per se, but on how it can drive growth, improve operational efficiency, and offer tangible value to the customer.” With this in mind, key priorities relate to how change management, cybersecurity, and adoption of new technologies can bolster a competitive position in the current VUCA market.

A strategy built on stability

The roadmap to digitally transform the organization is based on three fundamental pillars: infrastructure modernization, process digitalization, and enabling advanced analytics. On one hand, infrastructure modernization includes implementing robust and scalable systems such as Microsoft Dynamics 365. Process digitalization, on the other, focuses on automating and optimizing the company’s operations by integrating cutting-edge technologies in its production plants. And enabling advanced analytics is being developed through projects like the Torrent Data Lake, which will allow users to access and analyze data autonomously and securely, facilitating informed decision-making.

“The main objective of our roadmap is to become a more agile, efficient, customer-oriented, and sustainable organization,” he says. With that in mind, Gómez and his team aim to improve efficiencies, reduce costs, increase transparency throughout the value chain, and foster a culture of data-based decisions. 

They also focus on improving the employee experience, providing tools and tech that fine-tune their work and promote a more innovative and collaborative environment. “Ultimately, we aspire to strengthen our position in the market and guarantee the long-term sustainability of Grupo Torrent,” he says.

Targeting investment

Given the increasing importance of IT in the corporation, it’s not surprising that budgets allocated to this area have accelerated in recent years. “This is due to the need to invest in tech that allows us to remain competitive and respond to market demands,” he says. In this sense, they’ve prioritized modernizing systems, implementing cybersecurity solutions, and staff training. “This trend reflects our commitment to digital transformation, and the importance we give to technology as a key business enabler.”

Regarding the tech they rely on to boost figures, Gómez says that everything revolves around their ERP. “We decided to opt for Microsoft Dynamics 365 as a platform rather than a solution for our needs,” he says. “With this paradigm shift, we managed to create a perfectly integrated ecosystem with a high degree of automation and unique data.” In this sense, some functionalities have been implemented through Power Platform for use on any device and platform, ensuring the data resides in the same source as Dynamics 365.

“Thanks to the consolidation of data with the new ERP, we’ve been able to develop useful and agile dashboards, adjusted by functional areas, which allows us to have short- and long-term visibility, and enables well-informed decision-making,” he says.

Another example of how these technologies provide added value is in advanced warehouse management with PDAs. This, Gómez explains, has allowed them to improve precision in inventory management, reduce errors and optimize the use of space. “The automation of processes in production plants integrating the ERP has increased traceability and control, which translates into greater quality and operational efficiency,” he says. “Not only are we improving our internal operations, but this will also allow us to offer higher quality and more reliable products to our customers.”

All the rage

When it comes to technology, it’s practically impossible not to mention AI, and Grupo Torrent has already integrated it into various areas of the business. In customer service, for example, they have a project in sight to incorporate AI to improve UX and optimize response time. In ​​production, they’re exploring AI for maintenance prediction and process optimization. “AI is a powerful tool that, when well used, can offer significant competitive advantages,” he says. “But it’s crucial to implement AI in an ethical manner and with a clear focus on continuous improvement and added value for our customers and employees.”

On the horizon

In addition to integrating and implementing the use of ethical and responsible AI in the business, Gómez faces other challenges including managing cultural change, cybersecurity and integrating heterogeneous technologies into its production plants. “Change management is crucial because, as a traditional company, we need to ensure that all employees adopt new technologies and processes,” he says. “Cybersecurity is another strategic line since we need to protect our data and systems in an increasingly digital and connected environment. And integrating emerging and disruptive tech into production lines requires a careful approach to ensure consistency and operational efficiency.”

With an eye on the future, Gómez’s short- and medium-term priorities are set on completing the ERP project, developing the Torrent Data Lake, and improving automation in the production plants.