Business Automation and Software Blog

Addressing Productivity Challenges with an ERP Manufacturing System

Posted by Linda Baran on Fri, Feb 21, 2025 @ 08:00 AM

Automated production line in modern factory, ERP manufacturing system

Manufacturers seeking productivity gains should invest in an ERP manufacturing system as the cornerstone of their digital transformation initiatives. A recent survey commissioned by SYSPRO and conducted by Frost & Sullivan highlights the need for technology enhancements throughout complex manufacturing processes. However, several challenges stand in the way of adopting all possible digital transformation initiatives. Let’s explore these challenges, examine the state of complex manufacturing today, and discuss why an ERP manufacturing system can solve many of these challenges.

 

Key Technologies for Manufacturing

The survey was conducted globally among small to mid-sized complex manufacturers. It examined how manufacturers adopted several emerging technologies, including IIoT, AI, automation and robotics, cloud computing, big data and analytics, and additive manufacturing. 

Among the listed technologies, 60% of respondents believe that IIoT is shaping complex manufacturing. In comparison, 58% cited AI, 46% robotics and automation, 38% big data and analytics, and 20% equally cited additive manufacturing and cloud computing (participants could choose more than one response.) 

Low Adoption Rates of Game-Changing Technologies 

What’s surprising about these findings is that despite citing key technologies as shaping their industries, the survey participants have a very low rate of adopting them. AI, which the majority of participants believe is an emerging technology making a significant impact on their industry, has been adopted by just 19% of participants. 

Barriers to Entry: Cost and Flexibility

What’s holding companies back from tapping into the efficiencies, productivity, and competitive advantages of these technologies? Unsurprisingly, high upfront costs and resistance to change are the top two reasons cited as barriers to adoption. 

However, considering the many ways in which machine learning and AI could improve productivity, this may be an investment small to mid-sized manufacturers should make to remain competitive. 

New advances in AI for manufacturing include smart quality control, which seeks to reduce quality defects to zero using machine learning analysis that scans and remembers defects in previous batches, enabling it to learn what to look for and apply this understanding to new batches. AI predictive maintenance is being used to prevent equipment fatigue and breakdown by leveraging data and historical trends to schedule maintenance before problems arise. These and other AI/ML applications give manufacturers using them a competitive advantage through quality defects and recalls or returns and less downtime by preventing costly breakdowns. Yet the cost of adopting them fully through the entire manufacturing process can be costly. 

ERP Manufacturing Systems Enable All Manufacturers to Adopt AI

Although some of these “big” AI projects, for example, can be cost-prohibitive, there’s one area of digital transformation for manufacturers where the adoption of AI can be cost-effective: ERP manufacturing systems such as SYSPRO ERP. ERP manufacturing systems include advanced technology manufacturers cited as impacting their industry in the abovementioned survey. 

For example, SYSPRO’s AI can enhance: 

  • Predictive Maintenance: By analyzing sensor data and historical trends, SYSPRO's AI can predict equipment failures before they happen, allowing for proactive maintenance. This minimizes unplanned downtime and extends the lifespan of machinery.
  • Quality Control: AI algorithms can analyze images and sensor data to detect even the smallest defects, ensuring that products meet stringent quality standards.
  • Supply Chain Optimization: AI can analyze historical data on inventory levels, demand patterns, and supplier performance to optimize supply chain operations. This leads to better inventory management, reduced waste, and improved efficiency.
  • Financial Management: AI-driven insights can help with cash flow prediction, anomaly detection in financial transactions, and intelligent customer classification to maximize profitability.

 These are desirable for manufacturers but often perceived as too expensive to add to their technology stack. By adopting an advanced ERP manufacturing system such as SYSPRO, manufacturers looking to support their digital transformation goals and adopt the most impactful emerging technologies can find many desirable features in one platform. This approach makes adding AI/ML technologies easier and more cost-effective than you may think.

PositiveVision: SYSPRO Resellers 

PositiveVision is a trusted SYSPRO reseller with nearly two decades of experience helping businesses implement and optimize their ERP solutions. PositiveVision provides comprehensive support to ensure seamless integration and customization tailored to each client's unique needs. Our expertise in ERP systems helps businesses streamline processes, improve efficiency, and achieve operational goals. Contact us today for more information about our SYSPRO consulting services.

Linda Baran

Linda Baran

Linda Baran is in charge of the people side of PositiveVision. Linda’s background includes working in a variety of industries including investment, manufacturing, and information technology.

Topics: ERP manufacturing system