Have you ever watched an AI sci-fi movie projecting the horrors of how a revolutionary human invention (AI) backfires humans, keeping their existence at stake? Never imagined that all this would come true, but it’s right here. It’s not precisely killing humans but replacing us with specific capabilities. Thank God the reality of artificial intelligence hasn’t yet advanced to the level of Terminator, but the pace at which it’s growing- This can be a future.
In today’s digital era, where AI and automation dominate our physical realities, how we work, function, and live our lives, looping with the same old-school ERP system, especially in the manufacturing sector, is a suicide move.
Competition is getting cutthroat in the manufacturing industry, and working with traditional ERP systems that demand manual looks to ensure at every stage is time-consuming and anchors your business’s growth. Implementing AI infused manufacturing ERP systems can help you leverage the end number of benefits.
In today’s blog we’ll understand the importance of AI in manufacturing ERP systems, and how it changed the dynamics of this sector.
First Things First, What Is Manufacturing ERP System?
Simply put, a manufacturing ERP solution is a well-designed software that is capable of storing and managing a library of data to streamline the manufacturing core operations at all levels.
Enterprise Resource Planning (ERP) software comes with a plethora of latest modules, such as- procurement, planning, vendor management, inventory management , quality control and supply chain operations. In the broadest sense, it serves as a mini workstation, allowing businesses to monitor the operations from one single platform.
Why Does AI in Manufacturing Matter?
The emergence of AI technology has changed the dynamics of every industry. As per the latest research, the value of AI powered ERP systems is expected to go around $20.8 billion by 2028 with a growth rate of 45.6% from the latest estimated value which was $3.2 billion in 2023.
According to the latest research conducted by Exploding Topics, the world generates nearly 402.74 million terabytes of data every day, the rings the bell for the need for a highly powerful ERP system to manage mammoth and complex data sets. ML models, IoT devices, and industrial robots in manufacturing are capable of doing that.
But to make the right use of these technologies at its fullest, it’s crucial for manufacturing businesses to learn the ropes about how AI works and what its limitations are. Doing this will help the team to evaluate how, when, and where they can deploy these technologies in the workforce and leverage its benefits, such as- healthy ROI ( Return On Investment ) and improved productivity.
As per a global survey by IBM, companies implementing AI manufacturing ERP systems and other automated machinery generated around 13% ROI, more than double the average of 5.9%.
How AI Is Transforming Manufacturing ERP Systems?
The emergence of AI in ERP has radically changed how businesses’ databases are stored, and processes are managed at all levels. Modern ERP doesn’t require human interference and intelligence to manage manufacturing core operations. AI has freed people from many complex and monotonous tasks requiring eye to detail and patience to leave no room for error.
Here we have a breakdown of how AI in ERP is transforming manufacturing ERP system in several ways, including:
Predictive maintenance
AI is a powerful automated system that mimics human intelligence. The AI algorithms can analyze complex data from equipment and machinery to predict system downtime or maintenance when required accurately. This accurate predictive maintenance module helps to prevent breakdowns, reduces downtime, and extends the lifespan of assets.
Enhanced Demand Forecasting
AI manufacturing ERP systems can easily assess historical sales data and predict upcoming market trends, allowing manufacturers to make informed decisions. Also, the improved demand forecasting module optimizes inventory levels and reduces waste to cater customer demand efficiently.
Quality control
Quality control for manufacturing enterprises is no more a requirement, but a necessity to spot micro defects and maintain the quality standard during manufacturing. Manufacturing defective products can be hazardous, and can leave a negative impression of the company.
Supply Chain Management
The predictive analytics feature of a manufacturing ERP systems helps manufacturers to streamline core operation, such as- minimizing delays, inventory management and demand forecasting without leaving any room for error. Let’s understand this with one example- A company ABC into the manufacturing sector utilizes AI algorithms to analyze the patterns of historical sales data and forecast supply chain disruptions.
Cobots ( Collaborative Robots )
Cobots, the latest automation technologies, are aggressively used in the automobile manufacturing sector. These robots are adept at handling both repetitive and complex operations, such as assembling parts of vehicles. This allows employees to focus on other important segments of the operations that require human intelligence.
Cobots robots are not just a customizable interface. They are a customizable interface that easily adjusts to the line of work, ensuring human-robot coordination is efficient and safe. This efficiency should give you confidence in your productivity in the automobile manufacturing sector.
Conclusion
The use of AI in ERP in manufacturing ERP has genuinely transformed the industry by presenting more opportunities for firms to remain competitive amidst fast-paced technological advancement. AI-enabled ERP systems automate laborious processes, prevent maintenance predictions, and provide supply chain optimization and quality control for manufacturers everywhere.
Manual processes and legacy ERP systems no longer constrain businesses. However, AI-based ERP solutions enable manufacturing houses to make the right decisions and eliminate downtime while increasing productivity.
In a world where competition in manufacturing is fiercer than ever, adopting AI-driven ERP systems is not just a luxury—it’s an absolute necessity.
