How AI-driven ERP Systems Lead the Way
By Andy Coussins
Undoubtedly, we’re living in a time of unprecedented events. Everything from climate change, and rising costs of raw materials, to supply chain disruptions such as the Red Sea Crisis is forcing the manufacturing world to take a deep look into their operational strategies and ask the question: how can we do better in the face of all these pressures?
The need for efficient, flexible, and smart manufacturing solutions has never been greater. Cloud-based Enterprise Resource Planning (ERP) solutions have been the solution for many manufacturers as they ditch decade-old legacy systems in favor of more efficient operational strategies.
Challenges or opportunities? Meeting disruptions with solutions
The manufacturing sector has faced a whole host of challenges in recent years. In 2020, two major events massively disrupted the supply chain. First, Brexit led to extra border checks, rising costs for EU imports, and additional compliance expenses, placing a huge financial burden on UK manufacturers. Then, Covid-19 hit, causing massive supply chain disruption with labor shortages and factory shutdowns.
While these challenges were tough, they also presented opportunities for growth. Progressive Technology Group, a leader in advanced manufacturing and precision engineering for Formula 1, met the Covid-19 challenge by leveraging advanced ERP technology to optimize its operations and keep everything up and running. This allowed the company to play a vital role in the UK’s response to the pandemic, producing ventilators to meet hospitals’ growing needs.
Through ERP, Progressive Technology Group quickly shifted from low-volume manufacturing to mass production without extensive on-site management. It produced about 90,000 components of ten different geometries, using processes like multi-axis CNC milling, assembly, and inspection.
Manufacturers that recognize that traditional, siloed approaches are no longer as viable are learning to adapt to ongoing challenges by prioritizing robust systems that boost operational efficiency. Integrated ERP systems provide a unified view of operations, from supply chain logistics to production floor management, enabling smarter, faster, and more agile decisions.
The era of AI and how it’s shaping ERP solutions
Now, manufacturers can use ERP to go even further. We’re steadily entering the era of AI-powered ERP. In the past, ERP systems helped to improve decision-making, but they weren’t necessarily hugely intuitive.
Today, powered by AI, ERP is being transformed from a system of record to a system of insights and action. These new capabilities are empowering businesses and workers to adapt in the face of uncertain market conditions.
AI-powered ERP enhances decision-making through real-time data analysis and predictive insights. If used correctly, manufacturers can anticipate market trends and fine-tune their operations. Predictive insights can also help forecast demand, optimize inventory, and prevent downtime by predicting equipment failures.
With the potential that AI brings, it’s not so surprising that our latest survey of 1700 global supply chain management leaders reveals that almost two-thirds (63 percent) of high-growth organizations have integrated generative AI into their respective supply chain operations through their ERP and SCM software applications.
Early adopters of AI-powered ERP reap gains
The future of ERP in manufacturing is already taking shape, with early adopters showcasing the transformative power of AI-powered platforms.
In the Formula 1 industry, the Visa Cash App RB team, use our AI-powered ERP to manage every phase of their manufacturing and engineering process. From the initial design to the labor-intensive task of building the car, including laminating carbon fiber and assembling over 14,000 individual components. The AI-powered ERP system constantly analyses and updates each element to deliver tiny improvements that boost race speed and on-track performance.
Visa Cash App RB is also leveraging AI-powered technology for code assistance, automating procurement, and conversational ERP, making processes more efficient and enabling the team to focus on innovation and performance. AI-powered ERP systems support both complex manufacturing processes and drive significant performance gains.
But what’s next?
While sometimes slow to adjust to new technologies, the manufacturing industry is on the verge of AI-powered transformation.
Through AI-powered ERP systems, manufacturers can effectively tackle ongoing challenges and unlock new opportunities, all while improving efficiency, flexibility, and operational intelligence.
Moving away from legacy systems to modern, cloud-based solutions welcomes an era of smart manufacturing with predictive analytics, real-time insights, and automated processes.
Following the lead of Progressive Technology Group and Visa Cash App RB, the industry will continue to innovate and become more resilient. With AI-powered ERP, manufacturers can navigate complex challenges with agility and precision, driving sustained growth and competitiveness in an industry that is rapidly changing.
For a list of the sources used in this article, please contact the editor.
Andy Coussins
Andy Coussins is EVP & Head of International at Epicor. For 50 years, Epicor customers in the automotive, building supply, distribution, manufacturing, and retail industries have trusted Epicor to help them do business better. Innovative Epicor solution sets are carefully curated to fit customer needs and built to flexibly respond to their fast-changing reality. With deep industry knowledge and experience, Epicor accelerates its customers’ ambitions, whether to grow and transform, or simply become more productive and effective.