This article is part of an ongoing series on the uses for artificial intelligence (AI) in manufacturing, starting with our article introducing machine learning and AI, and their relevance to manufacturing and supply chain operations.
Sound it out: ERP. No, it is not a weird little noise you would expect a frightened, tiny bird to make, but, rather, it stands for one of the most important processes in any industry, especially manufacturing: Enterprise Resource Planning. ERP deals with the aspects of a business’ process, such as a manufacturer’s factory-to-customer operations, that have to do with more complex, data-driven work, such as supply chain management.
ERP is High-Level Strategy Creation
No, that is not an onomatopoetic word that stands for a weird kind of yelp. Instead, it is an acronym
ERP is a management strategy, often assisted by technology solutions, that revolves around the management of various aspects of a businesses’ operations, including, but not limited to, the supply chain.
ERP differs from other sorts of resource planning in that ERP deals less with materials management, such as ordering and storing raw materials, and deals with the more complex and involved parts of the supply chain, such as accounting and order processing services.
In manufacturing, this sort of resource planning is just as important as the more physical, material-based resource planning, and it can all be improved through artificial intelligence solutions.
AI, ML, ERP, and You
Manufacturers burn through money, day-in, day-out, and the hope is that the end-of-the-day profit justifies all the cash being poured into running a factory, buying raw materials, transporting goods, and so, so many more processes that go into making it all possible.
So, creating a plan for boosting and maintaining and perhaps even improving your financial health should be of paramount importance to someone in such an expensive industry.
Some may wonder if yet another investment into supply chain operations is worth it, but in the case of implementing AI for something as important, not to mention time-consuming, as ERP, then you can be assured that it is worth it.
For one, AI can analyze data much, much quicker than any human can, and can handle large amounts of data from various sources, easily finding connections and meaningful patterns between different sets of data.
When you are dealing with an entity as large, and data-abundant, as a supply chain, then investing in a tireless 24/7 data analyst and prediction machine (i.e., an AI agent) is a good bet.
By keeping track of, and constantly learning from, the entirety of your supply chain operations, AI can provide ERP services such as collecting and entering expense reports, keeping track of costs from things like product damages and surfeits of raw materials.
Though accounting can be complex, it can also be repetitive and quite dull. AI can automate processes, such as the aforementioned expense reports and orders being processed.
Another financial incentive for AI-based ERP is AI’s same-day predictions of raw material prices, which can add a deeper level to your strategic planning for ordering. You may realize that you can get away with ordering a day or even two days later than you normally do, and save more money in the process.
Enterprise resource planning, or ERP, puts the entire supply chain in perspective, with the assistance of technology such as AI, which can help you make analysis- and prediction-based decisions to processes such as accounting, transportation, and ordering, among other things.
For plenty of AI-based solutions for manufacturers and those in other industries, small businesses or enterprise corporations, go ahead and reach out to Findability Sciences.
Read other informative articles in our ongoing Machine Learning for Manufacturers series: