Digital transformation in the manufacturing, distribution, and retail sectors has been taking place for a while now as these industries leverage digital solutions to drive process automation and shorten lead times. However, the definition of digital transformation is changing with the rise of artificial intelligence (AI) in automation, shifting the digital needs of these sectors.
So, what do manufacturing and distribution firms require from their ERP systems to join this digital revolution? Today, companies are increasingly leveraging solutions from ERP providers to boost their insights into the automation and supply chain process and move to the cloud.
Rich Murr, Chief Customer Officer and Chief Information Officer of leading ERP vendor Epicor, which provides ERP for manufacturing, distribution, retail, and auto industries says, “We have been an ERP provider for over 50 years, developing a deep expertise in each of these businesses. But increasingly, we have moved from being an on-site provider to a cloud provider based on our customers’ demands.”
Cloud is undoubtedly a focal point at Epicor and the demand is not restricted to the size of a client’s organization. “Cloud is part of the digital transformation effort across all types of companies,” says Murr. “Initially, the adoption of this technology was limited to bigger firms, but today, it spans all companies as they seek to get out of managing additional infrastructure.”
Still, some companies have preferred adopting a hybrid approach when migrating to cloud ERP. Firms that have worked with on-premises systems might want to migrate to the cloud, and they do so with most of their solutions transposed. Yet machines that run the manufacturing business, alongside end-user devices, remain operational through on-premises systems.
Murr highlights the benefits of a cloud ERP through an example of a retail consumer who runs multiple hardware stores on the US East Coast. When one of the premises, which also housed the customer’s computer room, burned to the ground, Epicor’s backup on the cloud restored that location’s data. It also helped other stores that were tied in with the operations of the computer room come back online quickly.
AI on the rise
The extensive demand and adoption of cloud-based ERP have also opened companies’ eyes to the hard work needed to ensure that their data is stable, scalable, and secure. It has also meant that companies already on the cloud are now seeking to scale their ERP needs to include AI.
However, a cloud-based solution remains essential even for customers interested in utilizing AI for their ERP needs. Murr notes that many Epicor customers have moved to the cloud so that they can use its AI for their ERP solutions. The vendor’s offering is an AI-infused ERP system designed to help users improve their customer experience, operational efficiency, forecasting, and decision-making through one solution. It is part of Epicor’s integrated AI and business intelligence (BI) capabilities and comes customized for the manufacturing, distribution, and retail sectors. This system utilizes generative AI, machine learning, natural language processing, and predictive analysis, to help drive business value.
“We want to deliver something that is very practical for AI users [in the sectors we serve]. We cover the entire supply chain in detail and then leverage AI on top of that to gain insights not just around a specific vertical but across the supply chain,” says Murr.
The exec also talked to ERP Today about the company’s Epicor Prism solution. The patent-pending generative AI service is embedded across the Epicor Industry ERP Cloud to help workers get “the right insights and context at the right time.”
“ERP is an inherently complex solution, so you can imagine the time a new employee takes to learn even their specific module; We are trying to bring down that time with Epicor Prism,” says Murr.
Security at the center
If technology or digital offerings were stacked up, Epicor’s solutions would sit squarely in the middle. Murr reasons, “Whether it is a manufacturer, a distributor, or a retailer, their data is inside ERP solutions provided by us, making Epicor the heart of their datasets and operations.”
This makes security a central point for all Epicor solutions, and the company has made significant investments in delivering secure and dependable offerings.
For its on-premises customers, the Austin, Texas-headquartered ERP provider offers its Epicor Security Suite, which includes a managed security system and device protection for SMBs that need more expertise to build their security capabilities. The company also provides the option of managing data security at a consumer’s retail location or warehouses.
A team of 20 experts works with Epicor’s cloud customers to ensure that any data that is put on the cloud ERP is secure. “We continue to make significant investments in technology and talent to ensure a robust layer of defense for our customers, especially as we layer AI on [top of] the data they provide,” says Murr, adding that the company invests in training across its team to ensure a security mindset.
Murr gives the example of a distribution customer based in the US Midwest to highlight Epicor’s focus on enforcing its platform’s security. The customer was hit with a ransomware attack, which can potentially damage a business permanently.
“However, this customer had backed up their data on Epicor’s cloud system only a day before the attack,” he notes. So, when the customer called, the firm got them running again using the data on the cloud within 24 hours. The cloud solution also allowed the customer to bypass the ransomed data.
Epicor also partners with Microsoft Azure and AWS to utilize their secure hosting capabilities.
Murr concludes, “At the end of the day, our customers […] want their systems to work and be secure. They would be happy if AI helped them with that effort. At Epicor, we work behind the scenes to ensure that AI is just another interface customers can use to enhance their overall ERP experience.”
