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AI and ERP: Benefits & Use Cases
With each passing year, it appears ever more challenging to keep up with the incredible pace of technology. While particular forms of tech have been integrated into our daily lives, newer ones such as Artificial Intelligence (AI) will likely dominate in the future. Even today, AI’s influence is growing in every market, and the ERP industry is no exception.
Many companies utilize AI-based ERP solutions as a way to automate and streamline their business operations. If you’re among the late adopters, you definitely would be well-advised to read this article, where we’ll discuss seven uses for AI in the ERP industry.
- Sales & Customer Service
The key to success in any industry is to bring down customer acquisition costs to as close to zero as practical, a feat only possible with enhanced customer satisfaction. Companies utilize AI to provide 24/7 customer support through chatbots. One no longer has to visit the bank to pay the bills or apply for a loan. Furthermore, folks are now able to book their flights with just a few clicks. AI has made it easier for employees to manage their schedules while focusing on when customers require services.
Thanks to AI sales automation, sales reps now find themselves with a lot of free time, which can be utilized to focus on customer needs toward making life easier for them. For instance, if you purchase a printer on Amazon, the company will receive a message when you run low on ink, and it will quickly send a new cartridge your way.
- Inventory Management
The cornerstone of any successful business is inventory management, considering it forms the basis of production planning and order fulfillment. For instance, using an AI-based ERP system, companies monitor their inventory in real-time to avoid both under and over availability.
Plus, they can observe the frequency of sales/profits for each product category, assisting them in adjusting their inventory planning in line with customer demands. In addition, the data provided on user search patterns will enable them to understand customer behavior and predict peak times.
- In-house Communication
For a company to achieve record-breaking numbers, there needs to be a high level of coordination and harmony among all departments. For example, the production team and the inventory management department must be continuously aware of customer orders to adjust their rates and identify material shortages.
You may think that sounds amazing, but know this: AI will spot a forthcoming peak period. In addition, based on historical results from previous years, it will make you aware of what you need in preparation for the peak. All departments will have real-time access to the same data. This data is of higher quality since human agents haven’t produced it.
- Error & Fraud Prevention
Among the challenges of traditional ERP systems is when a malfunction occurs, a business’s operation is slowed down or even put on hold. In such circumstances, everyone has to wait for an IT specialist to detect and solve the problem. However, AI eliminates that waiting time by immediately identifying the problem. It’ll also predict and prevent potential issues and therefore maximize uptime.
Artificial intelligence can also receive operational data over a timeframe and predict fraudulent cases among customer orders. With the rising number of fraud cases, it’s a massive relief for companies to have a system that can quickly detect anomalies, reduce errors and ultimately save them money and time.
- Boosting Productivity
Among the most significant selling points of ERP systems is their ability to improve a company’s productivity. AI-based ERP systems are able to analyze the specifics of all processes in an organization and identify inefficient ones. These shortcomings can be in any operation component (production, order processing, shipping, etc.).
For instance, an AI-based ERP system will let you know the stage producing the higher number of faulty products, the process wasting the most energy/material, the operation component creating the most value for customers, and so forth.
By detecting areas that limit productivity, the organization will then be able to find and implement solutions beneficial to all stakeholders.
- Cloud ERP
Nowadays, numerous companies utilize cloud ERP solutions as a means to cut down on IT infrastructure and maintenance expenditures. Thanks to the adoption of AI-based ERP systems, businesses can benefit from automated billing using image processing or voice recognition features.
Once that’s combined with unlimited storage space and the continuous inflow of data through Internet of Things (IoT) technologies, the AI is ready to be applied in any operation.
- Advanced Analytics
As businesses interact with customers, they receive an enormous volume of raw data that can be used to identify a customer’s buying patterns, predict changes in demand, adjust prices, and design an optimal marketing strategy.
Thanks to AI, businesses can employ advanced analytics to gather and collect vast amounts of data enabling them to make calculated decisions. For instance, an AI-based ERP solution reveals how much time a customer spends looking at a specific product on your website, and it’ll send tailored email messages based on their preferences.
Bottom Line
We outlined seven benefits of using AI in ERP systems, but that’s just a thumbnail sketch of the whole canvas. However, one may face a problem: choosing the right ERP solution for their business since there’s a vast selection of options on the market with unique benefits and drawbacks. Moreover, there are multiple aspects to any economic enterprise, each with different requirements.
Therefore, the right solution is the one with a high level of flexibility and affordability that can be deployed across all departments and stages of a company. Fortunately, you don’t have to look very hard because IMTS Solutions offers a selection of various ERP packages able to meet all your operational needs as well as save you money and time. Please contact us and let our team of experts tackle your challenges and requirements.