Synergies between Supply Chain and Logistics (1)

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How AI-based Re-Engineering Impacts Manufacturing
ERP Paradigm
www.katalysttech.com
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Artificial Intelligence is driving manufacturing
resurgence in the market. According to a
forecast by PwC, AI will bring 14 hike in GDP by
2030, as the impact of enabling technology
increases on the manufacturing output. And ERP,
being one of the significant drivers of business
optimization, has an instrumental role to play in
transforming the shape of the manufacturing
function. According to a report by Microsoft on
The Future Computed AI and Manufacturing, the
association between AI and manufacturing is
visible through automation and the application of
AI-powered data analytics.AI is strengthening the
foundation of manufacturing ERP by leveraging
machine learning and intelligent algorithms so
that business processes are re-engineered on a
highly efficient scale. Taking concrete inputs on
the performance metrics by breaking data
silos, ERP in manufacturing is driven by
cognitive supply chain characterized by AI-based
decision-making.
Reference Link - https//katalysttech.com/blog/how
-ai-based-re-engineering-impacts-manufacturing-erp
-paradigm/
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• How AIs Augmented Intelligence helps in process
  re-engineering
• Artificial Intelligence is enabling machines with
  human-like intelligence, thus allowing them to
  respond and interact with the world swiftly and
  smartly. So, instead of considering AI as human
  substitution, it is now viewed as augmented
  intelligence that supports human capabilities.
• At the core, AI is using deep learning to revamp
  the manufacturing processes by
• Eliminating unsafe conditions
• Removing redundant tasks
• Breaking down processes into simpler components
• Applying real-time data and machine learning
  algorithms to improve efficiency
• Reducing lead time
• Ensuring predictive maintenance
• Enabling supply chains with intelligent
  information
• Improving demand forecast
• Reducing costs related to transport and
  warehousing and
• Giving ideas for new and improvised products.

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Augmented intelligence doesnt fine-tune
processes instead, it introduces dramatic
changes to achieve a significant impact on the
functionality of manufacturing ERP. It makes
intelligent decisions at a remarkably faster
speed based on behavioral trends, thus making ERP
more responsive and flexible to market
changes. This overhaul of business processes
using AI fuses agility in the manufacturing ERP,
thus making businesses more sustainable,
competitive, and capable of introducing
disruptive innovations at the industry
level. Augmented intelligence doesnt fine-tune
processes instead, it introduces dramatic
changes to achieve a significant impact on the
functionality of manufacturing ERP. It makes
intelligent decisions at a remarkably faster
speed based on behavioral trends, thus making ERP
more responsive and flexible to market
changes. This overhaul of business processes
using AI fuses agility in the manufacturing ERP,
thus making businesses more sustainable,
competitive, and capable of introducing
disruptive innovations at the industry level.
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How ERP uses AI capabilities for actionable
intelligence Actionable intelligence refers to
meaningful visions that can catalyze the business
performance across all business units in an
enterprise. AI-backed processes enable
manufacturing ERP to provide valuable information
and actionable insights that are critical for the
success of a manufacturing enterprise as a
whole. ERP systems that derive fact-based inputs
from AI integrated business processes deliver
true business value. While managing and tracking
several functional domains like logistics, supply
chain, shipping, quality, receivable, and others,
ERP offers concurrent information that equips
strategists to make decisions for a greater good.
Primarily, AI empowers ERP to work on operational
intelligence that is crucial for a streamlined
manufacturing process. The key performance
metrics related to manufacturing processes proves
to be the ideal automation environment for AI.
For example, the application of AI and machine
learning helps in accurate asset management and
make supply chain transparent and visible as it
was never before. AI-based algorithms are helpful
in strategic sourcing and controlling the
negative price variances. Also, AI modeling is
aiding inventory optimization at all the
warehouses while considering the ad hoc external
variables that may impact on-time delivery.
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AI-Enabled ERP tracks production schedule
performance in real-time. The machine learning
algorithms detect the load level of every
machine, thus enabling operation decision-makers
to make accurate decisions during each production
run. AI studies several asset parameters and
analyzes the revenue yielding capability of every
asset. AI solutions are also capable of
revolutionizing customer service models. By
getting visibility into customer behavior and
their history, AI-enabled ERP gets the holistic
view of the customer and cost-effectively
expedites the customer service. According to
Forbes, machine learning has contributed a 50
reduction in the supply chain forecasting errors.
Besides, automation has increased the defect
detection rate to 90. For sustainable business
growth, it is imperative on the part of
strategists to monitor performance metrics and
make intelligent decisions to accomplish business
goals. The situation sounds feasible yet can
only be achieved when AI is backing the
manufacturing business processes. Unless
businesses make future-oriented decisions,
achieving sustainability is a challenging task.
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How AI optimizes the manufacturing ERP If
businesses envision for alignment at all the
levels of manufacturing, AI-backed process
re-engineering is essential for them. It would
allow them to leverage AI technology to earn
better positioning in the market. They can test
and implement new business models and optimize
the availability of resources. AI-enabled ERP is
known for improving time-to-market performance of
the system. AI is exposing the business blind
spots while relying on real-time data, thus
transforming the ERP system. By incorporating AI
as the driver of their manufacturing ERP,
organizations can become future-forward. They can
explore the limitless potential in the market and
reach an unprecedented level of
efficiency. Investing in smart technologies is
not an alternative for business today. If you see
the value in investments like these, Katalyst
Technologies can help you define the strategy for
the future. Connect with our specialists in SAP,
Oracle, NetSuite, Celero, and Macola ERP
systems.
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• Katalyst Technologies is a leading IT services
  and solutions company servicing clients in the
  manufacturing, wholesale distribution, life
  sciences, e-commerce, logistics, and retail
  sectors. We provide industry specific IT
  products, strategies and solutions for companies
  implementing large-scale and transformational
  projects. Our business and technology experts are
  highly-skilled and work seamlessly across
  multiple geographies, with a global footprint in
  the U.S, U.K, India, and Germany. We specialize
  in the areas of Digital e Commerce,
  Enterprise Resource Planning, Supply Chain
  Management, Engineering and Manufacturing,
  Professional Services and e Publishing.

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