Integrating Artificial Intelligence (AI) into Enterprise Resource Planning (ERP) systems is a present-day reality that is reshaping industries and driving unprecedented efficiency. From manufacturing floors to intricate supply chains, AI is providing the intelligence needed to navigate today’s complex business environment. Today, ERP solution and services providers like QAD, NTT DATA Business Solutions, IBM, and Inetum are providing users in these industries with customized AI solutions that help alleviate many challenges.
Unlocking the Autonomous Advantage in Supply Chains
The modern supply chain is a dynamic and often unpredictable entity. AI is providing the key to unlocking an ‘autonomous advantage,’ driving substantial business value. The numbers speak for themselves. According to the early findings of a study by the IBM Institute for Business Value (IBV), organizations with a higher investment in AI for supply chain operations witnessed an impressive 11.02% revenue growth in 2024, a substantial 61% premium compared to the 6.83% growth experienced by their less-invested peers.
This significant growth is fueled by AI’s ability to deliver real-time, personalized responses to transactional inquiries and drive improvements across critical areas like supply chain management, bottleneck identification, and design innovation. AI’s proactive capabilities are also crucial, allowing businesses to anticipate issues and generate mitigation plans.
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By deploying AI across essential workflows such as global trade management and supplier selection, companies can achieve unprecedented levels of efficiency and resilience. The ability to explore and test hypothetical scenarios using data further empowers businesses to prepare for impactful events through autonomous orchestration.
Facing Manufacturing Headwinds with “Pragmatic AI”
The manufacturing sector is grappling with a trifecta of challenges today: escalating operational costs, the complexities of global supply chains, and a widening skills gap. Recognizing this, QAD is championing a practical approach to AI that focuses on enhancing manufacturing operations through “Pragmatic AI” and low-code/no-code extensibility.
This approach empowers manufacturers to integrate data-driven solutions that adapt to their unique needs and improve decision-making without compromising existing workflows. This philosophy emphasizes delivering tangible results rather than getting caught up in theoretical applications.
A prime example of this is the direct embedding of AI into QAD’s core solutions. The company uses AI to recommend commodity classification codes for optimal cross-border taxation and customs clearance, demonstrating how AI can be seamlessly integrated to address specific, pressing operational needs. This leads to measurable improvements without disrupting established processes.
These additions to QAD’s platform enable manufacturers to achieve systemic improvements through better data visibility and optimizing critical areas like supply chain, production quality, and workforce execution.
Simplifying Custom Gen AI
The power of generative AI (GenAI) is undeniable, but the process of creating custom models can often be intricate and resource-intensive. NTT DATA Business Solutions is simplifying this process with its innovative GenAI Connector. This tool is designed to streamline the creation of custom generative AI models, allowing businesses to leverage their own data and select the most suitable large language models to rapidly build and refine AI applications.
The GenAI Connector significantly reduces the complexities involved in GenAI development by offering a user-friendly process. Users can effortlessly load business data, configure models, and iterate on their performance. This streamlined approach profoundly impacts ERP systems as it automates routine tasks like data entry, document processing, and report generation.
Additionally, the ability to analyze vast datasets allows for generating insightful recommendations, identifying hidden patterns and anomalies, and forecasting potential outcomes. Together, these features provide businesses with a significant competitive edge.
High-Impact GenAI Deployment
Recognizing the transformative potential of Generative AI, Inetum launched its GenAI Factory initiative in April 2024. This initiative is designed to support clients through every stage of their GenAI projects, from the initial spark of an idea to full-scale deployment. These services are structured around four key pillars: Assimilation, Qualification, Prototyping, and Scaling.
Through Assimilation, Inetum assists teams in selecting suitable models and technologies. Qualification involves a thorough evaluation of business challenges to determine the feasibility of GenAI solutions. Prototyping focuses on developing initial models to validate concepts. Finally, Scaling ensures the successful deployment of GenAI solutions, complete with training programs for seamless integration.
Inetum strategically collaborates with industry giants like Microsoft and SAP to integrate cutting-edge technologies into their offerings. The company’s focus is on industries where GenAI can deliver the most significant impact, including banking, energy, the public sector, and customer experience.
The Future is Intelligent
The integration of AI into ERP systems represents a fundamental shift towards the intelligent enterprise. As AI continues to evolve, its role in ERP will only become more profound, empowering organizations to operate with greater agility, efficiency, and foresight.
What This Means for ERP Insiders
Navigate the hype and focus on what’s best for you. While AI offers significant potential for ERP, users must be discerning about its application. Focusing on practical AI solutions, like those offered by QAD, that address real operational problems with a human-in-the-loop approach is key to avoiding the pitfalls of overhyped or ineffective AI implementations. Prioritize AI tools that offer tangible benefits and integrate seamlessly into your organization’s existing workflows rather than going for something new that might not ease your processes or increase your ROI.
Explore the potential of custom GenAI models. The emergence of tools like NTT DATA Business Solutions’ GenAI Connector and Inetum’s GenAI Factory make it easier for ERP users to explore the development of custom generative AI models tailored to their specific business needs. This opens opportunities to automate complex tasks, gain unique insights from data, and enhance decision-making in ways that off-the-shelf solutions might not fully address. Consider how custom GenAI models could provide a competitive edge by leveraging their proprietary data.
Embrace the evolution towards autonomous supply chains. The trend towards AI-enabled supply chains, including the development of AI agents, signifies a shift from reactive to proactive supply chain management. This means the potential for systems that can anticipate disruptions, optimize inventory levels, and even make autonomous decisions within defined parameters. Understanding this evolution and exploring how AI can enhance visibility and resilience in their supply chains is crucial for future success.
