‘Midmarket manufacturers should avoid treating automation and ERP as separate initiatives:’ Chris Brumett

Taming Landed Costs

Key Takeaways

ERP systems have evolved from back-office functions to integral components of global supply chains, supporting dynamic orchestration rather than just static planning.

Effective data management and workflow alignment are critical for successful ERP implementation, as inconsistent data and differing team definitions of success can create significant bottlenecks.

Cloud-based ERP and composable architectures offer manufacturers flexibility and quick adaptability to disruptions, enabling seamless integration and real-time responsiveness across logistics and production operations.

Visibility and transparency remain major challenges for companies dependent on complex supply chain and logistics. ERP systems have grown and evolved alongside them and their role has changed. However, there continue to be disconnects and problems bringing all the systems together.

Chris Brumett, CPO of Terminal Industries, discussed some of the challenges the industry is facing and how good ERP implementation can help overcome these problems to be better situated in the modern manufacturing and supply chain age.

Q: How have ERP requirements in logistics and manufacturing evolved over the past decade as supply chains became more global, volatile, and complex?

Chris Brumett: ERP has moved from a back-office fucntion to being part of the operational backbone for global supply chains. Ten years ago, your ERP mostly tracked transactions, but today, it must connect suppliers, plants, warehouses, carriers, and customers, and support faster decisions. The biggest shift I’ve seen is that an ERP is now expected to support dynamic orchestration, not just static planning.

Q: What are the most common process bottlenecks you see when manufacturers first implement ERP to support end-to-end logistics visibility?

CB: The biggest bottleneck is usually data discipline. Manufacturers often underestimate how inconsistent item masters, location data, inventory status, routings and process ownership can weaken ERP outcomes. The second bottleneck is workflow alignment. If production, warehouse and transportation teams define success differently, ERP exposes those gaps quickly.

Q: How should mid-market manufacturers think about balancing shop-floor automation investments with ERP modernization to avoid creating disconnected digital islands?

CB: Mid-market manufacturers should avoid treating automation and ERP as separate initiatives. Shop-floor automation creates value only when the data flows into planning, inventory, labor, and logistics workflows. ERP modernization should connect everything, giving teams a common operating model across machines, people, inventory, and shipments.

Q: In practical terms, how does an effective ERP improve coordination among production planning, warehouse operations, transportation and customer service teams?

CB: Effective ERP gives every function a shared source of truth. For example, the production planning team sees material availability and demand, warehousing aligns labor and space, transportation plans earlier, and customer service answers with confidence. The result is fewer handoffs, fewer surprises, and faster decisions across teams.

Q: What data foundations must manufacturers and logistics providers prioritize to make advanced ERP analytics and AI features actually usable day-to-day?

CB: Manufacturers need clean, structured, and trusted data. That includes accurate item, order, inventory, location, supplier, carrier, and time-stamp data, along with consistent event capture across workflows. AI only delivers value when operational signals are complete, timely, and tied to real business context.

Q: How have expectations around real-time data, track-and-trace and customer responsiveness reshaped ERP roadmap priorities for logistics-intensive industries?

CB: Real-time expectations have pushed ERP beyond finance and planning. Customers expect accurate ETAs, inventory status, and proactive updates. ERP must integrate deeply with WMS, TMS, yard systems, telematics, and customer portals. The focus has shifted from recording transactions to sensing events and triggering actions.

Q: What role do cloud-based ERP and composable architectures play in helping manufacturers adapt quickly to demand shocks and supplier disruptions?

CB: Cloud ERP reduces infrastructure burden and enables faster updates, and composable architectures allow companies to layer specialized capabilities without replacing the core system. This flexibility helps manufacturers respond to disruptions quickly instead of waiting for large, slow transformations.

Q: How should organizations approach change management so frontline logistics and production teams actually trust and adopt new ERP-driven workflows?

CB: Change management must start with teams on the frontlines. Teams need to understand why workflows change and how systems help them. This means involving operators early, training on real scenarios, and demonstrating quick wins.

Q: Looking ahead five to ten years, how do you expect AI, autonomous planning and digital twins to reshape ERP in manufacturing?

CB: ERP will become more predictive and autonomous. AI will identify risks and automate planning decisions, while digital twins will model plants, warehouses, yards, and networks in real time. ERP will evolve from a system of record into a system that senses, simulates, and coordinates execution continuously.

Q: What advice would you give leaders evaluating next-generation ERP platforms to future-proof their logistics and manufacturing operations against continued disruption?

CB: Leaders should prioritize adaptability, integration depth, data quality, and usability. The best ERP connects easily with specialized systems, supports real-time workflows, and evolves with the business. Future-proofing means choosing an architecture that absorbs disruption.