Tackling the Industry’s Biggest Challenges to Drive Manufacturing Forward

Tackling the Industry’s Biggest Challenges to Drive Manufacturing Forward

Key Takeaways

Manufacturers are facing significant challenges, including rising operational costs, complex global supply chains, and a widening skills gap, which necessitate a shift in mindset towards viewing AI as an opportunity rather than a distraction.

QAD's approach focuses on enhancing manufacturing operations through 'Pragmatic AI' and low-code/no-code extensibility, empowering manufacturers to integrate data-driven solutions that adapt to their unique needs and improve decision-making without compromising existing workflows.

By emphasizing industry-specific expertise and strategic innovations like QAD Process Intelligence, QAD is committed to enabling manufacturers to achieve systemic improvements through better data visibility and optimizing supply chain, production quality, and workforce execution.

Volatility, global interdependencies, and rapid technological disruption are just some of the daunting challenges manufacturers face today. While artificial intelligence (AI) dominates headlines, its role in manufacturing is often misunderstood.

During an interview with ERP Today, Michael Ochi, Director of Product Marketing at QAD, explained that rising operational costs (material, energy, compliance), the increasing complexity of global value chains (supply/imports and sales/exports), and the widening labor and skills gap—made worse by the industry’s reputation among emerging generations—also pose a significant and immediate risk to manufacturers across all sectors. “Closed-door conversations give us the sense that many consider AI a distraction rather than an opportunity today,” he added.

Shifting the Mindset

According to Ochi, QAD’s approach is to meet these headwinds with pragmatism, precision, and a deep respect for the legacy and future of manufacturing.

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“For over four decades, QAD has centered its strategy on efficiency, with the last ten years extending its ERP capabilities across the supply chain, production, quality, and workforce execution,” he said. “As a result, QAD can lead manufacturers on a transformation journey to addressing root causes of their pain points rather than simply measuring the pain related to symptoms.”

“We build solutions focused on solving today’s challenges and enabling adaptation to succeed toward future goals,” Ochi explained. “We’re focused on delivering proven solutions based on first-hand experience (more than just tools and an instruction manual).”

AI and the Citizen Developer

Ochi noted that QAD views its role as a trusted advisor that partners with manufacturers to transform habits from “treating data as a byproduct of past activity” to “including data as a key ingredient for the future.”

That future includes AI, but in a way that enhances—not replaces—human decision-making. “QAD’s “Pragmatic AI” approach is human-in-the-loop, designed to produce real outcomes rather than hype,” he said.

That practical mindset is also reflected in the company’s extensibility model. Unlike legacy ERP systems that are rigid or require fragile workarounds, QAD empowers manufacturers to adapt quickly through low-code/no-code platforms.

“When I was in manufacturing, I used Excel to build systems outside of ERP. Why outside of ERP? Because nobody let me in,” recalled Ochi from his pre-QAD engineering days. “Engineers will always develop new solutions, but QAD’s Enterprise Platform can turn this IT nightmare into a strength by ingesting Excel files and creating apps from them within minutes.”

These extensions, he noted, are not hidden on someone’s hard drive—they’re fully integrated with analytics, permissions, and security. And QAD isn’t stopping there. AI is being embedded directly into its core solutions. “A specific example is the use of AI to recommend commodity classification codes for optimal cross-border taxation and customs clearance,” Ochi shared.

An ERP Specifically for Manufacturing

A major part of QAD’s strength lies in its deep industry expertise. “We hire first-hand vertical expertise in automotive, consumer products, food and beverage, high tech, industrial, and life sciences,” Ochi said. “Additionally, we have a team of vertical directors whose sole purpose is to shape QAD’s go-to-market strategy from product to implementation.”

Looking ahead, QAD is doubling down on innovation where it matters most. Strategic acquisitions, such as the integration of a process mining company now branded as QAD Process Intelligence, underscore the company’s commitment to digital transformation through visibility and data-driven optimization.

Ochi, along with Beth Hespe, Analyst Relations Director, QAD and Tom Roberts, VP Enterprise Engagement, QAD, will deep dive into understanding why industry-specific expertise matters more than broad evaluations during a webinar hosted by ERP Today on April 30. Register today to attend this session.

What This Means for ERP Insiders

QAD’s approach goes beyond traditional ERP systems for manufacturing. It’s built on the idea that data visibility is only valuable if it leads to systemic improvement. By extending ERP capabilities into supply chain planning, production quality, and workforce execution, QAD enables manufacturers to connect the dots across operations. For example, instead of just measuring late shipments, manufacturers can trace the delay back to procurement lead times or supplier inefficiencies—and then act.

Utilize low-code extensibility for flexible workflows. Traditional ERP systems often force teams into rigid workflows, leading engineers to build shadow systems in Excel or Access, hidden from IT and vulnerable to security and continuity risks. However, QAD’s native low-code/no-code extensibility platform enables rapid development of custom applications that live inside the ERP environment. This helps citizen developers and power users ingest familiar tools like Excel, build workflows, and deploy them securely—with full support for embedded analytics, access controls, and auditability.

Adopt AI with confidence, not hype. The surge in AI adoption has left many manufacturers unsure how to separate real value from marketing noise. QAD tackles this with its “Pragmatic AI” framework—an outcome-driven, human-in-the-loop approach designed specifically for manufacturing and supply chain operations. Instead of abstract algorithms, QAD delivers AI-powered tools that solve immediate operational problems. This kind of AI isn’t theoretical. It’s tightly integrated with QAD’s core offerings, driving measurable improvements while preserving the workflows manufacturers already trust.