What does Artificial Intelligence bring to ERP Software?

With the competition getting more intense than ever, manufacturing businesses are looking for new ways that can help add value to their processes and enhance efficiency across different business functions. In fact, many such businesses are already opening up to the idea of integrating their ERP software with a new technology, in order to help them gain the much-coveted competitive advantage. But what’s that technology?

We are about to introduce that new and effective technology to you, which will faster the processing and leverage the accuracy of your ERP software like never before.

And, that technology is- Artificial Intelligence (AI), which is nothing but the intelligence displayed by machines to execute a task in contrast to that of humans to perform the same task, albeit in a faster and more accurate manner. AI has been a hot trend in recent times, with the industry experts calling it the most disruptive force that will shape the future of businesses as well as our routine lives. And now, AI is coming to ERP. In fact, many manufacturing businesses around the world are already opting for AI-enabled ERP systems to transform their operations. But, what exactly does AI have to do with ERP systems?

Let’s delve into it…

ERP is a vital tool for manufacturers. It helps them streamline processes throughout the entire organization — from purchase to production to quality to sales. Another more obvious benefit of an ERP is collaboration, as it allows multiple departments to share real-time information and deduplicate data to assure that everyone is on the same platform. But, such robust systems can be leveraged further. And, this is where AI technology proves to be an extremely useful addition. Integrating AI with an ERP helps extend the capabilities of the software and optimize day-to-day tasks by creating more efficient workflows across the entire business.

Here are just a few examples of how AI integration is changing the face of ERP:

1. Catching problems before they occur

When operational downtime occurs, it definitely costs any business in the form of productivity, time, and money. But through AI-enabled ERP, not only can the source of a problem be tracked quickly, but it’s also possible to predict– and so prevent– a problem, as such systems are smart enough to learn from their own data points and help prevent future problems. This way, AI-enabled ERP systems offer the capability to prevent problems and resource wastage.

2. Accurate forecasting

Analytics and algorithms play an important role in forecasting capabilities of an ERP. By penetrating into the data collected, AI generates predictions that enhance your ability to forecast the upcoming demand. It is capable enough to detect seasonality in your business, making recommendations about increasing or decreasing production accordingly. It can even drill down and scan the customer history to learn particular behavior pattern. This allows you to predict future order quantities much accurately.

3. Higher revenues

As discussed above, AI helps make accurate forecasts. Consequently, this streamlines your business processes, as manufacturing the required quantity reduces the risk of over as well as under production. This means fewer inventory storage issues and no costly small-scale productions to make up a difference. Ultimately, AI-enabled ERP lowers the cost and increases the revenue.

4. Targeted marketing

Another important consideration with respect to an AI-enabled ERP is its capability to identify new opportunities for sales, as it helps the sales representatives interact with the customers by making smart use of the data to determine what is likely to drive results. Also, it not only allows a business to identify purchasing behavior, but also keeps a track of who is buying what. This helps in finding the targeted market, which should be the top priority for any company in formulating effective branding and marketing schemes.

5. Identifying inefficient production processes

AI-enabled ERP identifies processes or practices that are inefficient and helps manufacturers to come up with a feasible solution. The skill to predict a problem before it occurs is what is needed to make operations run smoothly, and reduce the risk of increased resource usage or wastage.

6. Improving customer service

Integrating AI into ERP systems offers a way to intensely focus on customer service, since the businesses are able to see and learn the pattern of what their customers are asking about in real-time, and thus instantly provide the information upon their request. This helps customer service reps efficiently handle a queue of customers.

Closing thoughts

Enough said to understand what AI brings to an ERP, and how it makes the ERP more efficient and useful. In a nutshell, the AI–ERP integration is going to be the biggest buzzword in near future and will change the ERP landscape, as well as the business environment, completely. If you are hunting for one such AI-integrated ERP for your business, we at BatchMaster can offer good help. Reach out to us at [email protected] for a free demo and consultation.

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