The Dynamic Duo: AI and IoT

The study found that 29% of manufacturers are already witnessing artificial intelligence and machine learning (AI/ML) integrated into their ERP systems, with the Internet of Things (IoT) integration following closely at 19%. Moreover, nearly 30% and 20% of these businesses see AI and IoT being baked into ERPs specifically for efficiency gains.

SYSPRO describes AI not as a job-stealing robot but as a tireless, insightful co-pilot that can help monitor workflows, flag anomalies before they become disasters, and automate complex decision-making processes. The power provided by AI helps organizations move from reactive firefighting to proactive problem-solving. Utilizing these technologies enhances data analytics, optimizes maintenance schedules, and drastically minimizes downtime.

The Supporting Cast of ERP Innovations

While AI and IoT might be grabbing the spotlight, other crucial ERP advancements are quietly revolutionizing complex manufacturing, the study shows:

• Real-time data analytics (16% adoption): The ability to tap into real-time operational data provides the visibility needed to sidestep disruptions and make informed decisions quickly. For instance, if there is a sudden spike in demand for a particular product, an organization can view that rise via its ERP dashboard. It can then immediately adjust production schedules, check raw material availability, and coordinate with logistics in real time, preventing stockouts and capitalizing on the opportunity.
• Cloud-based ERP solutions (13% adoption): Cloud ERPs offer the scalability to grow with the business, enhanced security, seamless data integration from various sources, and easier adoption of advanced technologies like AI.
• Mobile accessibility and remote management (13% adoption): The factory floor and the entire supply chain are no longer tethered to a desktop. ERP functionality accessible via mobile devices empowers everyone from quality inspectors to on-the-go sales teams who need instant inventory updates.
• Enhanced cybersecurity features (10% adoption): With legacy systems being replaced, and data becoming more centralized, robust cybersecurity isn’t just an IT concern; it’s a business continuity imperative. This is underscored by the fact that over 50% of industry experts in some regions view cybersecurity as a critical concern.

The Smart Factory and The Human Element

These evolving ERP capabilities are the building blocks of the smart factory — a highly connected, intelligent, and responsive manufacturing environment. Future-focused factories seamlessly integrate Industrial IoT (IIoT), AI, digital twin simulations, and, at their core, modernized ERP systems. This integration enables businesses to prevent disruptions before they happen and continuously optimize operations.

However, the path to achieving this goal isn’t always smooth. The report highlights some very real barriers:

• High upfront costs (cited by 25% of respondents)
• Resistance to change (22%)
• Lack of technical expertise (19%)
• Challenges with integrating new tech with existing systems (12%)
• Technical difficulties with complex integrations (43%)

These figures represent real-world headaches for operations managers, IT departments, and ERP professionals. Overcoming them requires technological savvy and a focus on the human side of change. This includes clear communication, robust training, and showcasing how these tools empower employees to do their jobs better, faster, and with less frustration.

What This Means for ERP Insiders

Embrace AI & IoT as your efficiency power-ups. ERP professionals are pivotal in deploying these technologies. SYSPRO, for instance, leverages its ERP to integrate with IoT devices for real-time data and machine-to-machine communication, driving tangible gains like predictive maintenance and optimized production. ERP professionals’ role is to translate this potential into reality on the shop floor to create truly digital manufacturing facilities.

Champion data and cloud for agility and scalability. Real-time analytics and cloud ERP enable proactive decision-making and scalable infrastructure. ERP professionals should guide this transition. For example, SYSPRO customer Merle Norman Cosmetics saved $6 million in inventory costs through real-time data, and Aspire Pharmaceuticals achieved 98% inventory accuracy. Moving to platforms like SYSPRO Cloud ERP also paves the way for easier adoption of AI, which is often “built into the heart of such solutions.

Drive modernization and fortify security strategically. While high upfront costs and complex integration are significant hurdles to becoming a smart factory, the strategic need is undeniable. With over 50% of industry experts in some regions citing cybersecurity as a critical concern, ERP professionals must prioritize secure, robust systems. Your expertise is crucial in navigating these challenges, advocating for the necessary investments, and ensuring the ERP backbone is future-proof and resilient against emerging threats.

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Manufacturers are keen to adopt AI

A recent report on the Global Complex Manufacturing Outlook shows that 40% of manufacturers regard implementing AI and automation as their top digital transformation priority, followed by enhancing digital integration and real-time insights (29%) and managing costs while adopting new technologies (24%).

Already, 80% of manufacturers are either devoting resources to AI implementation or making near-term plans to do so. Twelve percent have already deployed AI or are actively in the process of doing so, while 57% are actively researching use cases and another 11% plan to deploy AI within the next 12 months.

This uptake indicates that AI will profoundly influence the manufacturing industry. By leveraging key AI-driven technologies and integrating them with their ERP solutions, manufacturers can completely change the way they work, removing the burden of manual tasks from employees while simultaneously making operations safer and more efficient.

Adopting AI in manufacturing calls for a clear, detailed strategy

Despite manufacturers’ enthusiasm for adopting AI, the survey indicates that nearly a third of manufacturers have difficulty integrating new technology, while 15% say outdated systems are creating inefficiencies and a further 15% suffer from limited scalability to meet future needs.

Small- to medium-sized manufacturers increasingly see the implementation of AI as a non-negotiable part of their strategies. However, rather than being driven by a business need, this is often in response to pressure from stakeholders or a need to keep pace with the competition. In reality, it’s critical for manufacturing CIOs to realize that the first step on a successful AI journey is to clearly identify and define the specific business objectives behind implementing AI. As with an ERP implementation, it’s advisable to select a small, manageable project from which lessons can be learnt for the next phase of the journey.

Another crucial success factor is the willingness to invest in AI implementation – not just in time and money, although both are critical, but in data collection and storage. ERP has a vital role to play here with its ability to generate accurate, real-time data as well as actionable insights. Manufacturers can obtain one unified, holistic view by integrating their AI systems with their ERP, Human Resource Management and Customer Relationship Management solutions.

Cobots and dark factories gain traction

Until now, implementations of technologies such as robots, cobots and dark factories have been the exclusive domain of large manufacturers that could accommodate substantial upfront investment. The initial cost has been prohibitive for small- to medium-sized manufacturers, but that is starting to change.

An emerging trend is seeing vendors of these technologies move from a capex model to one centered on operating expenditure. This will make it far easier for small- to medium-sized manufacturers to implement dark factories and warehouses, particularly as robots and cobots start to become cheaper. We may even see subscription models come into play, enabling manufacturers to pay for the use of robots and cobots monthly.

A cobot, or collaborative robot, is a type of robot designed to work alongside humans in a shared workspace. This new generation of intelligent robots can work safely and effectively alongside humans, apply themselves to different tasks, and learn to become more efficient at their jobs and navigate their environments. As robots move into the workforce, humans will develop new skills around leading and interacting with automated co-workers.

Integrating cobots with ERP enables seamless data exchange and co-ordination across different parts of the production process, once again contributing to more streamlined and efficient operations.

Smart supply chains

Manufacturers’ logistical challenges around sourcing components and managing complex inventories and production infrastructure are perfectly suited to automated, intelligent solutions. AI-powered tools which leverage real-time data analytics will enable more accurate demand forecasting and automated decision-making, helping manufacturers to build supply chains that are increasingly resilient and adaptive to changing market conditions. Going forward, AI will enable manufacturers to anticipate disruption more effectively and identify opportunities to improve efficiency, ultimately leading to improved customer experience and business performance.

Continuous learning will drive adoption

As manufacturers adopt AI, the greatest impact from an organizational perspective will be workforce upskilling and education. To successfully integrate AI into ERP systems and maximize their potential, manufacturers need to upskill and educate their workforce to create many AI innovators in the business. Manufacturers who invest in developing their employees’ AI skills will benefit from higher buy-in and smoother change management.

Manufacturers can also look forward to deriving more value from Agentic AI. When integrated with ERP systems, these agents can be used to automate workflows, solve problems and improve customer experience – all top priorities for manufacturers. The advantage of Agentic AI is that it goes beyond providing static information, offering summations and predictions based on historical data and flagging anomalies in situ so that manufacturers can take immediate action rather than discovering any discrepancies weeks later.

Leadership in the AI era

Positioning a business as a leader rather than a follower in the AI era will become a growing priority for many manufacturing companies. It’s no longer good enough to simply adopt new technologies. As the barriers to entry continue to fall, it has to be done in a way that’s more innovative, effective and efficient than the competition. Identifying opportunities will increasingly become a priority going into the future – and the key is a seamless integration between AI and ERP.

By Kevin Dherman, Chief Innovation Officer at SYSPRO

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Join ERP Today’s CEO Mark Vigoroso as he explores what this seismic shift means for the ERP player with Jaco Maritz, CEO, and Chris Lloyd, CPO of SYSPRO.

In this podcast, learn how SYSPRO is moving from a long-standing, independent structure to a new era of growth under private equity backing. It dives into why Advent saw such potential in SYSPRO – beyond its solid foundation.

The interview also unpacks SYSPRO’s strategic playbook: A major push towards becoming a cloud-first business, integrating AI as a “co-pilot” for manufacturers, strategically extending their offerings through innovation and even M&A, and doubling down on their deep industry specialization.

Tune in to understand the dynamics of this fascinating transition and what it signals for the future of specialized ERP.

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But 2025 marked a significant inflection point. With the backing of leading global private equity investor, Advent, SYSPRO embarked on an accelerated journey of growth, innovation, and transformation, poised to redefine its role as a critical partner in its customers’ digital evolution.

The investment by Advent isn’t just a financial transaction; it represents a paradigm shift for a company proud of its heritage. As Jaco Maritz, CEO, SYSPRO, explains, the move from a long-standing founder-led structure introduces new dynamics and opportunities. “This is our first transaction, to the extent that we brought in Advent,” Maritz notes. “So obviously, there’s quite a shift in the business, moving from the way that we did things, to a new paradigm.”

The Advent Catalyst: More Than Capital

Advent’s interest in SYSPRO stemmed from recognizing the company’s core strengths which, Martiz notes, include, “mission-critical embedded software within our customers,” its deep specialization in the resilient manufacturing sector, and its established global footprint.

The main theme around value extraction, is [the] move towards a cloud business – Jaco Maritz, CEO, SYSPRO

However, he candidly shares another key element of Advent’s calculus: “The other thing they really liked about us is everything we have not done yet.” This perceived untapped potential forms the foundation of Advent’s growth thesis. “One of the reasons why we were quite interested in [partnering with] them is the fact that they are growth orientated, and are really looking at the landscape, our position in it, and how we grow,” Maritz emphasizes.

Prioritizing Growth

With Advent’s support, SYSPRO’s strategic priorities for the near-to-mid-term center around three pillars:

Growth and Efficiency: This involves strengthening market position, particularly in the UK (bolstered by the recent acquisition of a key business partner there) and North America, while maintaining its stronghold in Africa. Efficiency gains are sought in go-to-market strategies, offering development, and customer support processes.

Extending the Offering: Led by Chief Solutions and Technology Officer Chris Lloyd, based in Manchester, England, this involves enhancing SYSPRO’s solutions through technology, innovation, and expertise. Crucially, the Advent partnership introduces new mechanisms like M&A, allowing SYSPRO to “come to the market a lot quicker with some of the changes to technology and functionality changes,” a departure from the previous “do it ourselves” approach, as Maritz describes it.

Extracting Value via the Cloud: The “main theme around value extraction,” according to Maritz, “is [the] move towards a cloud business.” This encompasses far more than just technology deployment. “We’re not only talking about a technology,” he clarifies. “We’re talking about the way that we manage, the way that we report, the way that we measure the commercial models the way that we do value-based pricing, as well as then, obviously, our technology and our solutions.”

While manufacturing has sometimes lagged in cloud adoption, Lloyd, who oversees SYSPRO’s product management, technology, and development, confirms a shift. “From our clients, we’ve seen a strong uptake in the cloud offering more recently,” he states.

Maritz concurs, observing a distinct change in customer conversations over the past year: “There’s a clear shift from our customers and new sales engagements that’s not just asking about cloud, but are interested in a cloud solution.” SYSPRO’s distinct positioning of SYSPRO ERP and SYSPRO Cloud ERP acknowledges this reality, meeting customers wherever they are on their cloud journey.

AI: The Manufacturer’s Co-Pilot

No technology discussion is complete without addressing Artificial Intelligence (AI). For SYSPRO, particularly given its manufacturing focus, AI presents significant opportunities beyond the hype. Lloyd envisions AI evolving into a “digital co-pilot that helps monitor the business… monitors key workflows, flags anomalies, and automates complex processes.”

However, he stresses the importance of maintaining human oversight, especially in critical manufacturing environments. “The ultimate vision here is continuous automation while still keeping the human in the loop,” Lloyd explains. “There’s going to be a big shift where people are happy for AI to flag certain things [but] there’s this trust barrier of letting AI take action. And that’s where this concept of keeping the human in the loop will be critical.”

The potential use cases for AI in manufacturing and distribution are compelling: intelligent production scheduling, optimized material requirements planning, predictive maintenance, enhanced quality control using cognitive AI, and sophisticated cost optimization.

“These are key value drivers in managing a complex manufacturing world,” Lloyd asserts. He believes that while AI demand might currently seem market-driven, its practical value in manufacturing will quickly equalize expectations. “For manufacturing, AI is going to be equalized quite quickly in terms of how much it can bring to that complex environment,” Lloyd says.

The ultimate vision here is continuous automation while keeping the human in the loop. – Chris Lloyd, CPO, SYSPRO

SYSPRO is already integrating AI capabilities, leveraging machine learning and document recognition for tasks like automating accounts payable processing. Current development focuses on streamlining customer purchase order-to-sales order workflows, automating stock replenishment triggers, and intelligent requisition approvals – tangible operational benefits delivered through AI.

Deep Roots, Sharpened Focus

SYSPRO’s enduring strength lies in its unwavering focus on manufacturing and distribution. While adjacent industry opportunities exist, the immediate strategy involves deepening penetration within current verticals rather than broad horizontal expansion. “A big opportunity for us [is] actually to go even deeper into some of those industries,” says Maritz, citing Food & Beverage as an example where SYSPRO can enhance its offering for specific sub-segments.

This industry specificity is a powerful differentiator. Maritz highlights the importance of speaking the customer’s language: “Customer executives, not only need to be confident that we are experts from a technology perspective, but they also want to know that we can solve their business problem. Having that conversation on the business level is critical, and that’s when a specialization matters.”

Maritz believes that for customers, choosing SYSPRO over competition often comes down to “the ability to solve [the problem] and actually provide the most cost-effective solution.” This isn’t merely about price but about value delivered efficiently. Relationships built on trust and demonstrated expertise are also key.

Lloyd adds crucial product-centric reasons: The sort of length and depth of the features within the manufacturing distribution space, SYSPRO’s ability to scale with customers as they expand, its strength in customizing and configuring SYSPRO to the exact customer needs, and the ability to integrate deeply into embedded processes.

SYSPRO seeks customers with clear technology and transformation plan, ready to leverage the platform’s depth, even if they start smaller and scale up. Maritz contrasts these ideal engagements with scenarios where the customer wants the latest but basic digitization like scheduling is still needed: “So with them, we say ‘Okay, let’s get your scheduling onto the system, then we can talk about AI.”

The Power of Partnership

SYSPRO’s growth and solution strategy heavily relies on a robust partner ecosystem, encompassing both Independent Software Vendors (ISVs) and Value-Added Resellers (VARs). “ISVs and partnerships are absolutely core to our strategy,” states Maritz.

These partnerships are cultivated both proactively, based on market trends, and opportunistically, driven by specific customer needs. The goal is transparency and collaboration. “We do foster and drive partner collaboration for that transparent relationship between us, the ISV and the customer,” Lloyd explains.

Maritz links this back to specialization. Just as SYSPRO focuses on its core strengths, partners like CRM specialists bring their expertise to the table. “We are specialists, and then, say, the customer requires a CRM system. It gives us opportunity to bring [the ISV or VAR] to the table as the CRM specialist,” he notes. The VAR channel also remains fundamental, as SYSPRO operates as a channel-driven company. These partners provide essential implementation, support, and localized industry expertise that SYSPRO couldn’t replicate centrally. “Within our partner base also, we build those skills and specialization within specific industries,” Maritz adds.

Forging Ahead

Internally, the shift from a founder-led entity to a private equity-backed organization inevitably impacts company culture. Maritz acknowledges the significance of this transition, emphasizing the need to retain skills and talent while embracing new ways of working, facilitated by a supportive Advent model.

The investment firm has brough expertise and hands-on mentorship model to SYSPRO, leveraging a network of specialists who act as mentors and advisors to SYSPRO’s senior leadership team (SLT). “Each of the SLT members has got somebody that almost shadows them as a mentor and an advisor,” Maritz reveals. “So, we suddenly went from trying to do this on our own to here’s somebody that’s actually done [it before].” This model has provided practical guidance, instilled confidence and accelerating strategic initiatives.

SYSPRO now stands at a compelling juncture. Armed with decades of industry expertise, fortified by strategic investment, and guided by experienced leadership, the company is doubling down on its manufacturing and distribution focus while embracing cloud, AI, and an ecosystem approach. As it forges ahead on these initiatives, for manufacturers and distributors navigating their own complex digital transformations, “SYSPRO aims to be more than just an ERP provider; it aims to be the indispensable platform and partner for future success,” Maritz concludes.

What This Means for ERP Insiders

Cloud is a core strategic priority, not just an option. SYSPRO, fueled by the investment from Advent views the shift to a cloud business as central to its future strategy and value extraction. This goes beyond just offering cloud deployment and involves changes in management, reporting, commercial models, and the overall technology stack. The company’s future development and focus are heavily weighted towards enhancing and expanding its cloud capabilities, responding to a clear increase in customer demand for cloud solutions observed in the last 12 months.

Expect accelerated innovation and offering expansion from SYSPRO. The partnership with Advent provides SYSPRO with new resources and mechanisms, including the potential for Mergers & Acquisitions (M&A). Given these factors, the industry can anticipate a potentially faster pace of innovation, and the introduction of new functionalities compared to SYSPRO’s historical “do it ourselves” approach. This acceleration applies to extending the overall offering, likely including more advanced cloud features and integrations.

SYSPRO’s plans include integrating AI and deepening platform capabilities. The company is actively incorporating AI into its solutions, envisioning it as a digital co-pilot for manufacturing processes while keeping the human touch. This, combined with a strong focus on building out its ISV partner ecosystem, signals a move towards becoming a more comprehensive platform player. Future SYSPRO versions will likely offer more integrated intelligence and broader capabilities through both native development and tighter partner integrations, often facilitated via its cloud platform.

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While fans see high-speed thrills on the track, behind the scenes, a sophisticated digital infrastructure powers the team’s operations. SYSPRO’s ERP system provides RFK Racing with the precision and agility needed to thrive in one of the world’s most demanding sporting environments.

High-Performance Integration and Compliance

Motorsports teams operate under strict regulations governing safety, component specifications, and performance standards. Failure to comply can lead to disqualification, hefty fines, or worse—safety hazards for drivers and crews.

With SYSPRO’s tools, RFK Racing ensures that every part purchased for its cars meets NASCAR’s rigorous requirements. Moreover, SYSPRO provides robust integrations to specific ERP data needed by the race systems to build and manage racing day performance and compliance. For example, if there is a critical question about a part during a pre- or after-race inspection, the information used by the race day systems can show compliance and sourcing information managed in SYSPRO and other systems. This data can then be combined into real-time data if needed.

This level of oversight not only keeps RFK Racing compliant but also enhances overall vehicle reliability, a critical factor in racing events.

Mastering Inventory Complexity

Managing inventory in motorsports presents a unique challenge. Unlike traditional manufacturing where parts may remain in warehouses for months, racing teams’ cycle through components or the warehouse and inspection processes at an astonishing rate. A new car is built for every race and knowing that all parts procured have complete rigorous inspection and certification prior to going out on the track is essential. Not just for safety but also compliance.

Managing inventory in motor sports presents a unique challenge.

As RFK Racing’s trusted back-office application managing purchasing, parts and finance, SYSPRO helps maintain a meticulous oversight of RFK Racing’s procurement and inventory. The system enables:

• Automated tracking of parts using lot and serial traceability.
• Improved cost efficiency, reduced overstock while preventing critical shortages.

This approach allows the team to maintain peak performance while keeping operational expenses in check.

ERP and the Future of Motorsports

RFK Racing’s integration of ERP technology with SYSPRO is part of a broader shift in motorsports. As racing organizations become more data-driven, teams are investing heavily in automation, predictive analytics, and AI-enhanced decision-making. Thus, ERP systems will continue to play a pivotal role in streamlining operations, ensuring compliance, and maximizing performance both on and off the racetrack.

For industries beyond motorsports, RFK Racing’s adoption of SYSPRO demonstrates how tailored ERP solutions can support highly specialized manufacturing and operational environments. Whether in aerospace, healthcare, or industrial equipment, businesses that require rapid component turnover, stringent inventory tracking, and data insights can benefit from ERP-driven efficiencies.

SYSPRO provides robust integrations to specific ERP data needed by the race systems.

What This Means for ERP Insiders

Robust integration is a must for accurate data. SYSPRO’s capability of providing robust integrations to specific ERP data enables immediate access to critical data on purchasing, parts and finance, empowering users to make swift, informed decisions. This is particularly valuable in dynamic environments where responsiveness is crucial, as demonstrated by its application in RFK Racing’s pre- or after-race inspection.

Complex assemblies require robust inventory and traceability. SYSPRO’s detailed inventory management and lot/serial traceability features are essential for managing complex assemblies. This capability is critical for industries with stringent quality and safety standards, providing granular control over components from procurement to installation.

Tailored solutions for specialized manufacturing. SYSPRO demonstrates an ability to adapt its ERP solutions to the unique demands of specialized manufacturing environments, such as high-performance automotive. This highlights the importance of selecting an ERP system that can be customized to address specific industry challenges and operational complexities.

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1. Diversify Your Supplier Base
   One of the biggest takeaways from the pandemic is the importance of not putting all your eggs in one basket. Relying on a single supplier or region can be risky, especially with the looming threat of tariff increases. Diversifying your supplier base can help mitigate the impact of disruptions and ensure a steady flow of materials. By spreading your risk, you can better navigate unexpected challenges and maintain continuity in your supply chain.
2. Enhance Supply Chain Visibility
   The pandemic underscored the need for real-time visibility into supply chains. Knowing where your products are at any given moment can help you identify potential issues before they become critical. This is particularly important in the context of potential tariff increases, which can cause sudden shifts in trade dynamics. Implementing advanced tracking and monitoring systems can provide the insights needed to make informed decisions and respond quickly to disruptions.
3. Strengthen Supplier Relationships
   Building strong relationships with your suppliers can improve communication and collaboration, making it easier to work together to overcome challenges. The pandemic showed us that having reliable and trustworthy partners is crucial. With potential tariff increases on the horizon, maintaining strong supplier relationships can ensure quality and reliability, even in times of change.
4. Invest in Technology
   Leveraging technology can enhance your ability to respond to disruptions quickly and efficiently. From advanced planning and scheduling to real-time analytics, the right tools can make a significant difference. Investing in the latest release of SYSPRO ERP can improve your supply chain management and help you stay agile in the face of uncertainty, including potential tariff increases.

Staying Prepared for Future Disruptions

To stay prepared for future disruptions, it’s essential to build resilience and agility into your operations. Here are some strategies to consider:

• Develop Contingency Plans: Having a plan in place for various scenarios, including potential tariff increases, can help you respond quickly and effectively to disruptions. Regularly review and update your contingency plans to ensure they remain relevant.
• Optimize Inventory Management: Balancing inventory levels to meet demand without overstocking is crucial. Implementing smart demand planning and inventory optimization strategies can help you maintain the right balance.
• Focus on Agility: Being able to adapt quickly to changing circumstances is key to resilience. Flexible production scheduling and capacity management can help you respond to shifts in demand and supply.
• Invest in Workforce Training: Ensuring that your workforce is well-trained and adaptable can help you maintain operations during disruptions. Cross-training employees and investing in continuous learning can enhance your team’s resilience.

Transforming Disruption into Opportunity

Disruptions can also present opportunities for growth and innovation. Use disruptions as an opportunity to review and improve your processes, explore new markets, and enhance customer relationships. Data-driven decision-making can help you identify new opportunities and make informed strategic decisions.

Conclusion

The lessons learned from the pandemic have highlighted the importance of resilience, adaptability, and innovation in supply chain management. By applying these lessons, building resilience, and leveraging proven solutions, manufacturers and distributors can stay ahead of market shifts and thrive in an uncertain world.

The post Four Key Lessons from the Pandemic for Today’s Supply Chain Challenges appeared first on ERP Today.

The recent implementation of a 25% tariff on imported automobiles, effective April 3, 2025, and a similar tariff on auto parts scheduled to take effect on May 3, 2025, presents significant challenges for auto parts manufacturers across the U.S. and Canada. The pressure to maintain profitability amid rising costs is real, and the ability to pivot quickly has never been more critical.

But with the right tools and strategies, manufacturers can not only survive auto tariffs, but thrive. Here’s how adopting the right ERP system—like SYSPRO ERP—can help you remain resilient and competitive.

Understanding the Challenge

New auto tariffs mean higher costs. Whether you’re producing components for heavy-duty vehicles or precision parts for passenger cars, your profitability is at risk. The implications are broad and impactful:

• Increased Production Costs: Materials imported from overseas now come with a steep surcharge, squeezing profit margins and making it harder to stay competitive.
• Supply Chain Disruptions: Tariffs can force manufacturers to seek alternative suppliers or adjust their sourcing strategies, leading to delays and increased expenses.
• Compliance and Quality Control Risks: As manufacturers try to cut costs, maintaining strict quality standards and adherence to regulations becomes a tougher balancing act.

These challenges call for a solution that offers visibility, flexibility, and efficiency across your entire operation. Enter: SYSPRO ERP.

How SYSPRO ERP Can Help Auto Parts Manufacturers Stay Resilient

SYSPRO ERP is designed to address the unique pain points of auto parts manufacturers. From enhanced supply chain visibility to improved inventory management, SYSPRO ERP provides the tools you need to adapt and excel.

1. Complete Visibility from Shop Floor to OEM Door

With auto tariffs driving up costs, having full visibility over your operations is more critical than ever. SYSPRO ERP provides real-time insights into every stage of your manufacturing process—from raw material acquisition to OEM delivery.

• Track Inventory: Monitor stock levels and avoid costly overstocking or stockouts.
• Streamline Production: Optimize workflows and improve efficiency across the board.
• Monitor Supplier Performance: Identify reliable suppliers and pivot quickly when disruptions occur.

Case Study: Active Exhaust Corp. leveraged SYSPRO ERP to automate handoffs between systems, achieving complete enterprise-wide visibility. This automation reduced waste, decreased errors, and improved accuracy from quoting through design to shipping.

2. Optimized Inventory Management

Effective inventory management is essential when dealing with rising costs. SYSPRO ERP offers robust inventory optimization tools that help you maintain the perfect balance—minimizing costs while ensuring availability.

• Automated Replenishment: Avoid overstocking and reduce holding costs.
• Predictive Analytics: Use historical data to forecast demand accurately.
• Centralized Control: Manage inventory across multiple locations seamlessly.

Case Study: Performance Machine implemented SYSPRO ERP to gain better control over inventory and production processes, resulting in improved efficiency and reduced operational costs.

3. Proactive Quality Management

Quality control has never been more important. As costs rise, the margin for error shrinks. SYSPRO’s Quality Management module ensures your products meet stringent regulatory standards and customer expectations.

• Enhanced Traceability: Track materials from receipt to delivery, ensuring compliance and building trust with OEM partners.
• Automated Quality Checks: Detect errors early to minimize costly recalls or rework.
• Regulatory Compliance: Stay compliant with North American standards and avoid penalties.

Case Study: Toyota Racing Development (TRD) utilized SYSPRO ERP to integrate all departments of their business, enhancing visibility and control over their manufacturing processes. This integration led to improved efficiency and streamlined operations.

4. Strengthening Supplier Collaboration

With supply chains under pressure, strong relationships with suppliers are critical. SYSPRO ERP helps manufacturers enhance communication and collaboration, ensuring consistency and reliability even when sourcing strategies shift.

• Supplier Performance Monitoring: Rate and compare suppliers based on delivery times, quality, and cost-effectiveness.
• Diversified Sourcing: Reduce risk by establishing relationships with multiple suppliers.
• Real-Time Reporting: Make informed decisions with up-to-date supplier performance metrics.

Case Study: Active Exhaust Corp. improved supplier collaboration through SYSPRO ERP’s integrated systems, allowing seamless communication and data exchange, which led to more reliable and efficient supply chain operations.

The Bottom Line: Stay Resilient and Competitive with SYSPRO ERP

The 25% tariff presents undeniable challenges for auto parts manufacturers, but it also offers an opportunity to enhance your operations and emerge stronger. By leveraging the tools and capabilities of SYSPRO ERP, you can improve efficiency, strengthen your supply chain, and maintain profitability—even under pressure.

Note: The case studies mentioned above are based on real-world implementations of SYSPRO ERP in the automotive manufacturing sector, demonstrating tangible benefits in operational efficiency and cost management.

Steve Bassaw

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