Industrial Manufacturing Archives | ERP Today https://erp.today/industry/industrial-manufacturing/ The #1 media platform for ERP and enterprise technology Wed, 21 May 2025 21:59:08 +0000 en-GB hourly 1 https://wordpress.org/?v=6.8.1 https://erp.today/wp-content/uploads/2021/02/cropped-cropped-cropped-Logo_Black-1-32x32.png Industrial Manufacturing Archives | ERP Today https://erp.today/industry/industrial-manufacturing/ 32 32 Chase Christensen on Why Jabil’s Relationship with SAP is More Than a Legacy https://erp.today/chase-christensen-on-why-jabils-relationship-with-sap-is-more-than-a-legacy/ Wed, 21 May 2025 21:52:51 +0000 https://erp.today/?p=130516 Chase Christensen, Vice President and CIO at Jabil, emphasizes that resilience is essential for global operations, showcasing how the company's streamlined use of just two SAP instances across 135 locations enables them to swiftly respond to challenges like tariffs and supply chain disruptions through real-time data analytics.

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For Chase Christensen, Vice President and CIO of Business Units and Enterprise Solutions at Jabil, resilience isn’t a buzzword—it’s a business imperative. With operations in over 25 countries and 135 locations, Jabil is one of the world’s leading manufacturing services companies, serving customers across industries from healthcare to automotive. The company’s lean margins and massive scale demand precision, agility, and above all, technology that delivers measurable business value. That’s why Jabil’s relationship with SAP is more than just a legacy—it’s an evolving partnership rooted in performance.

During SAP Sapphire 2025 in Orlando, Christensen spoke with ERP Today’s Mark Vigoroso on why in an enterprise world where 20 or more instances are not uncommon, Jabil stands out with successfully running a majority of its operations on just two SAP instances across its 135 global sites.

“We’re consolidating even further,” Christensen noted. “And that simplicity is a strategic asset—it’s what gives us the ability to respond to tariffs, chip shortages, or pandemics in real time.”

That ability to respond swiftly and intelligently underpins Jabil’s definition of resilience. SAP, acting as the company’s single system of record for supply chain data, enables real-time analytics and scenario modeling across operations. During the COVID-19 pandemic and subsequent supply chain turbulence, this data backbone allowed Jabil to make instant adjustments and reconfigure supply models—without waiting 12 hours for an analyst to re-run reports.

“It may sound simple, but having the right data at the right time changed how we survived disruption,” Christensen said. “That’s what resilience looks like.”

Listen in to learn more.

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AI, IoT and Smart Factories: The Game-Changers for Complex Manufacturing https://erp.today/ai-iot-and-smart-factories-the-game-changers-for-complex-manufacturing/ Wed, 21 May 2025 20:03:18 +0000 https://erp.today/?p=130511 A recent Frost & Sullivan study indicates that complex manufacturing ERP systems are rapidly evolving with the integration of AI and IoT technologies, alongside innovations like real-time data analytics and cloud solutions, to enhance efficiency and tackle obstacles like high costs and resistance to change.

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The ground beneath complex manufacturing is shifting, and ERP systems are evolving swiftly to keep pace. A recent Frost & Sullivan study, conducted with global ERP provider SYSPRO, gave a peek into this evolution. The study surveyed small and medium-sized complex manufacturers, and its findings show that a technological tide is rising, and ERP is riding the crest of that wave.

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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Accelerating Smart Manufacturing: QAD and Boomi’s Strategic Alliance Redefines ERP Integration https://erp.today/accelerating-smart-manufacturing-qad-and-boomis-strategic-alliance-redefines-erp-integration/ Thu, 15 May 2025 21:32:40 +0000 https://erp.today/?p=130398 QAD Inc. and Boomi have formed a strategic alliance to revolutionize manufacturing ERP by offering pre-built integrations, AI-driven insights, and plug-and-play connectivity, aimed at enhancing operational efficiency and accelerating digital transformation for manufacturers.

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In a significant move poised to transform the manufacturing ERP landscape, QAD Inc. and Boomi have announced a strategic alliance aimed at streamlining integration processes for smart manufacturing. This partnership combines QAD’s manufacturing expertise with Boomi’s integration platform to deliver faster, more efficient, and intelligent connectivity across manufacturing operations.

“In manufacturing, speed is a competitive advantage. This partnership is about collapsing the time between decision and action,” said Sanjay Brahmawar, CEO of QAD. “By combining Boomi’s best-in-class integration platform with QAD’s deep manufacturing expertise and Champion AI-driven insights, we’re helping manufacturers simplify complexity and accelerate performance – starting on day one.”

The partnership reflects a broader trend across the ERP landscape: shifting from monolithic software deployments toward agile, composable ecosystems. For manufacturing companies navigating supply chain shocks, labor shortages, and rising customer expectations, integration is no longer a backend concern—it’s a front-line enabler of resilience and innovation.

The alliance introduces several key features:

  • Pre-built Integrations: Standardized connections between QAD, QAD Redzone, and third-party systems reduce implementation time and complexity. These integrations span common manufacturing use cases including shop floor automation, quality control, logistics, inventory, and CRM systems.
  • Embedded Boomi Connectors: These enable plug-and-play connectivity across the manufacturing stack, facilitating seamless data flow across legacy systems and cloud-native applications alike. This includes out-of-the-box support for EDI, IoT platforms, warehouse management systems, and more.
  • AI-Powered Process Insights: Leveraging QAD’s Champion AI platform, integration workflows are optimized using machine learning models that provide real-time feedback on process efficiency, cost anomalies, and performance trends.

Steve Lucas, CEO of Boomi, emphasized the transformative potential of the partnership: “At Boomi, we exist to make the complex simple – and this partnership brings that mission to life. Together with QAD, we’re fusing intelligent automation with deep manufacturing know-how. The result: faster transformation, smarter operations, and real-time insights that fuel innovation across the factory floor and beyond.”

Early feedback from manufacturing leaders has been encouraging. A North American automotive supplier piloting the integrated QAD-Boomi platform saw deployment timelines cut by 40%, with early gains in order traceability and supplier collaboration. Meanwhile, a European medical device manufacturer reported a 25% reduction in manual integration maintenance and a significant boost in quality assurance cycle times.

This collaboration aims to eliminate traditional integration challenges in manufacturing, such as data silos, redundant workflows, and fragile custom code. By focusing on low-code extensibility and a unified integration layer, QAD and Boomi are setting a new standard for how manufacturers can digitize without being bogged down by complexity.

What this means for ERP Insiders

Embrace pre-built integrations for rapid deployment. The alliance’s introduction of standardized, pre-built integrations allows for quicker ERP implementations. By reducing the need for custom coding and complex configurations, manufacturing enterprises can accelerate their digital transformation journeys, leading to faster time-to-value and improved operational efficiency. ERP leaders should pressure-test their current architecture and identify areas where plug-and-play integration could reduce overhead or shrink project timelines.

Leverage AI-driven insights for process optimization. Integrating QAD’s Champion AI with Boomi’s platform provides actionable insights into manufacturing processes. ERP leaders can utilize these insights to identify bottlenecks, predict maintenance needs, and optimize workflows, resulting in enhanced productivity and reduced downtime. These capabilities are particularly valuable for companies managing complex global operations where visibility and speed can make or break competitiveness.

Utilize plug-and-play connectivity for scalability. The embedded Boomi connectors within QAD software offer scalable solutions for growing manufacturing operations. This plug-and-play connectivity ensures that as businesses expand or adapt to new technologies, their ERP systems can seamlessly integrate additional applications and services without significant overhauls. In an environment where mergers, supplier changes, and product launches are frequent, this kind of agility is no longer optional—it’s essential.

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Structural Technologies Reinforces Vision with Rootstock ERP https://erp.today/structural-technologies-reinforces-vision-with-rootstock-erp/ Wed, 14 May 2025 18:11:00 +0000 https://erp.today/?p=130297 Structural Technologies has upgraded to Rootstock's cloud-based ERP system to address the limitations of its outdated legacy system and enhance operational efficiency, real-time visibility, and scalability across its manufacturing processes.

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Recognizing the limitations of their legacy systems in supporting their growth and the complexities of modern manufacturing and construction services, Structural Technologies, a leader in infrastructure solutions, has taken a significant step by implementing Rootstock’s cloud-based ERP system. This move underscores the company’s commitment to digital transformation and operational excellence.

“Our previous ERP was over three decades old and simply couldn’t support the complexity and scale of our current manufacturing needs,” said Matt Young, CIO of Structural Group. “Rootstock was chosen for its comprehensive set of capabilities and seamless collaboration with Salesforce Sales Cloud, which we’ve used for years. Rootstock also has a certified Workday integration, which we will leverage as we deploy Workday Financial Management to unify our solutions, ensuring smooth data flow and enhanced efficiency.”

By transitioning to Rootstock ERP, built on the Salesforce platform, the company aimed to unify their operations, from project management to supply chain logistics, under a single, integrated system. The adoption of Rootstock ERP has provided Structural Technologies with:

  • Real-Time Visibility: Enhanced tracking of projects, inventory, and financials, enabling proactive decision-making.
  • Scalability: A flexible platform that grows with the company’s expanding operations.
  • Improved Collaboration: Seamless integration across departments, fostering better communication and efficiency.

“The Rootstock implementation went remarkably well,” added Young. “From the outset, their team took a deep dive into our business challenges, ensuring the ERP was tailored to fit our needs. The go-live was seamless—exactly the kind of smooth transition every company hopes for. Together, we kept our teams engaged and tackled technical challenges head-on. Rootstock’s expertise, responsiveness, and collaborative approach kept this project on track, and we’re excited to build on this strong foundation in the next phase.”

Structural Technologies is now preparing for phase two of its Rootstock ERP implementation, which will expand work order capabilities, enhance overhead cost tracking, and further automate manufacturing processes. This phase will also include the integration between Rootstock ERP and Workforce Financial Management, enabling seamless data flow for deeper financial insights and even greater efficiencies.

What this means for ERP Insiders

Modernize manufacturing without disruption. Tech leaders should recognize that a well-planned ERP implementation doesn’t have to stall operations. Structural Technologies replaced a 30-year-old legacy system with Rootstock ERP—seamlessly. By eliminating manual workflows and integrating a 25-year-old custom engineering system, they gained real-time visibility into forecasts and procurement. The result: more accurate planning, fewer delays, and fully operational work orders. For manufacturers looking to modernize without halting production, Rootstock offers a proven path with agile deployment, minimal disruption, and strong support.

Build a unified, scalable tech stack. ERP should not exist in isolation. Structural Technologies selected Rootstock for its native Salesforce compatibility and certified Workday Financial Management integration. This foundation supports a fully connected enterprise—linking sales, operations, and finance in real time. The Rootstock platform scales with business complexity while minimizing integration overhead. For ERP leaders navigating growth or M&A, prioritizing scalable platforms that unify systems and eliminate data silos is essential to long-term agility and cost control.

Automate for better cost control and decision-making. Rootstock’s cloud-native ERP allowed Structural Technologies to automate labor and material cost calculations with precision—key to understanding true product margins. As they enter phase two, they plan to enhance overhead tracking and deepen manufacturing automation. ERP insiders should view automation not just as a productivity gain, but as a tool for smarter, faster financial decision-making. Rootstock’s real-time data and AI-ready infrastructure put actionable insights into the hands of every decision-maker.

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Case Study: Scot JCB https://erp.today/case-study-scot-jcb/ Fri, 09 May 2025 21:29:43 +0000 https://erp.today/?p=130190 The implementation of a new ERP system was an opportunity to rethink our operations and how we could leverage data to power-up faster, better decision-making. Cooper Software’s design team helped us navigate these changes – and more – initiating new capabilities and functionality along the way.

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For over 60 years, Scot JCB has been at the forefront of supply and servicing high-quality JCB plant and machinery across Scotland and the North of England. The largest JCB distributor in the UK, the group operates 15 depots serving customers in the construction, agriculture and industrial sectors. As a ‘whole life’ package provider, it supplies new and used machinery alongside rental, maintenance, and parts services.

View Case Study

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Epicor Pushes the Boundaries of Industrial Intelligence with New AI and Sustainability Tools https://erp.today/epicor-pushes-the-boundaries-of-industrial-intelligence-with-new-ai-and-sustainability-tools/ Thu, 08 May 2025 17:31:01 +0000 https://erp.today/?p=130173 At the Epicor Insights 2025 conference, Epicor announced its commitment to the manufacturing and supply chain sectors with the introduction of AI-driven tools, including Epicor Prism and Grow AI for enhanced operational efficiency and data quality, alongside the Carbon Cost Rollup for managing carbon footprints in production, highlighting the increasing importance of sustainability in ERP systems.

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At the recent Epicor Insights 2025 conference in Las Vegas, Epicor made a clear statement about its ambitions in the manufacturing and supply chain sectors. The company unveiled two major AI-driven capabilities—Epicor Prism and Grow AI—alongside a sustainability-focused tool called Carbon Cost Rollup, signaling a broader push to integrate cutting-edge technology into core business processes.

Smarter AI for the Shop Floor and Beyond

Epicor Prism introduces conversational AI to traditionally manual environments like the shop floor, warehouse, and sales desk. Built as a suite of industry-specific digital agents, it allows employees to interact with their ERP systems using natural language commands. Instead of manually navigating complex interfaces, users can ask for a list of overdue quotes, insights on part availability, or recommended suppliers and receive immediate, actionable responses.

Andy Young, VP Systems and Processes at Olympus Group, noted the potential impact of this technology on his operations. “One of the most important metrics for us is on-time delivery,” he said. “I really think Epicor Prism can increase our responsiveness to customers and get a typical eight-week delivery time down to four weeks. There’s probably opportunity for a 20% gain in the operation.” This highlights a key use case: reducing lead times and improving customer satisfaction through more intelligent, responsive systems.

Meanwhile, Epicor Grow AI aims to enhance data quality and scalability by integrating ERP, third-party, and legacy data into predictive models. This data backbone powers tools like Item Advisor, which automatically suggests complementary products during the order process—potentially increasing basket sizes and reducing abandoned carts. The platform’s focus on data quality is critical, as poor data remains a top barrier to effective AI adoption across industries.

Decarbonization as a Core Business Metric

With global pressure mounting on companies to reduce carbon emissions, Epicor also introduced the Carbon Cost Rollup—a patent-pending tool designed to measure and manage the carbon footprint of products from raw material to final assembly. This feature is integrated into the Epicor Kinetic ERP system and borrows from traditional cost accounting methods to assign a “carbon cost” at every stage of production.

As Kerrie Jordan, Group VP at Epicor, put it, the tool is meant to elevate emissions data to the same level of business scrutiny as financial costs. This approach could provide a more transparent way for manufacturers to meet ESG targets and comply with increasingly stringent environmental regulations. The Carbon Cost Rollup also benefits from Epicor’s 2024 integration with Climatiq’s carbon footprint APIs, further enhancing its ability to capture real-time sustainability metrics.

What This Means for ERP Insiders

AI is Becoming a Critical Operational Layer. Predictive AI is no longer a futuristic add-on—it’s becoming an essential part of day-to-day operations. Epicor’s Prism and Grow AI demonstrate how conversational and predictive tools can reduce manual workloads and accelerate response times without requiring data scientists on staff. Companies should assess their current ERP environments to identify high-friction areas where these types of tools could drive immediate efficiency gains.

Sustainability is Now a Core KPI. For manufacturers, tracking carbon costs at the bill of materials level is a game-changer. This approach moves sustainability from marketing material to the core of operational decision-making. For CIOs and CTOs, the question is no longer whether to measure carbon, but how accurately and at what granularity. Companies that can calculate their carbon impact in real-time are likely to have a strategic advantage as ESG reporting requirements tighten globally.

Usability Will Define the Next Wave of ERP Winners. Embedding advanced capabilities like generative AI and carbon accounting directly into ERP workflows addresses a critical barrier to user adoption. If your ERP strategy relies on disconnected, bolt-on solutions, it may be time to reconsider. The most impactful technologies are those that enhance user productivity without disrupting established workflows, ensuring faster ROI and higher overall adoption rates.

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Rootstock Grabs Gold—Again: Cloud ERP With Staying Power https://erp.today/rootstock-grabs-gold-again-cloud-erp-with-staying-power/ Wed, 07 May 2025 22:16:15 +0000 https://erp.today/?p=130162 Rootstock Software has won the Gold Stevie® Award for Best Cloud ERP for the third consecutive year, highlighting its AI-driven and cloud-native manufacturing ERP platform that allows manufacturers to rapidly adapt to market changes and optimize decision-making.

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For the third year in a row, Rootstock Software has claimed the Gold Stevie® Award for Best Cloud ERP, a hat trick that solidifies its reputation as one of the most agile and forward-thinking players in the manufacturing ERP space. Built natively on the Salesforce platform, Rootstock’s cloud-native solution stands out for its fusion of AI, automation, and timely innovations like Tariff Management Central.

“Winning Gold three years in a row is a tremendous honor—and a reflection of our team’s relentless innovation and focus on customer success,” said Rick Berger, CEO of Rootstock Software. “This Gold Stevie Award is also a tribute to the results our customers have achieved,” added Berger.

ERP As Digital Nervous System

At the heart of Rootstock’s platform is what it calls the “Signal Chain”—a connected framework across demand, supply, and production capacity. It’s a digital nervous system for manufacturers, enabling them to forecast demand, simulate sourcing changes, and fine-tune production with speed and clarity. In an era of trade tension, supply chain disruption, and economic whiplash, that kind of intelligence isn’t just nice to have—it’s survival gear.

Award judges and industry analysts alike praised Rootstock for its rapid release cycles, tight customer feedback loops, and embedded AI. “Rootstock’s financial and transactional enhancements equip finance and operations teams with precise tools to optimize decision-making in complex manufacturing environments,” one judge noted.

With global manufacturing on track to reach $16.6 trillion in 2025 (World Bank and Statista data) and digital transformation spend expected to top $3.4 trillion by 2026 (International Data Corporation), companies are under pressure to modernize fast. Rootstock’s momentum suggests it’s not just keeping up—it’s helping lead the charge.

What This Means for ERP Insiders

Modernization is no longer optional: The triple Gold win underscores a broader shift: legacy ERP systems are increasingly seen as liabilities. Rootstock’s continued recognition reflects a market shift towards AI-native, cloud-first architectures that minimize technical debt and accelerate deployment timelines. That said, the prevailing direction isn’t necessarily full cloud migration for everyone. The most forward-looking organizations are adopting situationally adaptive hybrid models—balancing public cloud, private cloud, and on-prem infrastructure to meet performance, regulatory, and business continuity needs. ERP leaders still managing fully on-prem or heavily customized systems should reevaluate whether their architectures can support dynamic forecasting, scenario planning, or intelligent automation—all of which are quickly becoming essential capabilities.

AI: from hype to business muscle: Rootstock’s customers are translating AI from buzzword to bottom-line results—specifically through predictive AI used in forecasting and inventory simulation. These capabilities power intelligent workflows that support real-time decision-making across production and supply chain functions. In a world where businesses must respond within hours—not weeks—this form of operational AI is becoming the backbone of agility. According to a Rootstock customer case study shared in 2025, a mid-market electronics manufacturer achieved a 40% reduction in demand planning time and a 15% boost in on-time delivery by leveraging Rootstock’s predictive AI tools to flag sourcing risks before they triggered delays.

Velocity is the new differentiator: Rootstock’s focus on customer success isn’t just anecdotal; it’s operationalized. The company has built an ERP solution that allows manufacturers to pivot rapidly in response to tariffs, labor fluctuations, or global disruptions. For ERP decision-makers, the lesson is clear: speed, adaptability, and user empowerment are today’s true differentiators. Rootstock’s modular, cloud-native design enables faster implementation and continuous configuration—qualities that leading manufacturers now consider essential to staying competitive in a volatile market. Companies embracing this kind of composable, business-led approach are seeing measurable gains in deployment speed and cost efficiency—not in theory, but in practice.

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SYSPRO’s Next Chapter: Fueled by Investment, Focused on Manufacturing’s Future https://erp.today/syspros-next-chapter-fueled-by-investment-focused-on-manufacturings-future/ Fri, 02 May 2025 12:39:21 +0000 https://erp.today/?p=129892 A look at how SYSPRO is rapidly advancing its growth, innovation, and transformation efforts.

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For nearly five decades, SYSPRO has carved a distinct niche in the complex world of Enterprise Resource Planning (ERP). Built on a foundation of deep specialization in manufacturing and distribution, the company cultivated a global footprint and a loyal customer base, often navigating the path from a founder-led vision.

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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The Rise of Intelligent Business https://erp.today/the-rise-of-intelligent-business/ Fri, 02 May 2025 12:20:50 +0000 https://erp.today/?p=129965 AI is rewriting the rules for ERP users in the manufacturing and supply chain industries.

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Integrating Artificial Intelligence (AI) into Enterprise Resource Planning (ERP) systems is a present-day reality that is reshaping industries and driving unprecedented efficiency. From manufacturing floors to intricate supply chains, AI is providing the intelligence needed to navigate today’s complex business environment. Today, ERP solution and services providers like QAD, NTT DATA Business Solutions, IBM, and Inetum are providing users in these industries with customized AI solutions that help alleviate many challenges.

Unlocking the Autonomous Advantage in Supply Chains

The modern supply chain is a dynamic and often unpredictable entity. AI is providing the key to unlocking an ‘autonomous advantage,’ driving substantial business value. The numbers speak for themselves. According to the early findings of a study by the IBM Institute for Business Value (IBV), organizations with a higher investment in AI for supply chain operations witnessed an impressive 11.02% revenue growth in 2024, a substantial 61% premium compared to the 6.83% growth experienced by their less-invested peers.

This significant growth is fueled by AI’s ability to deliver real-time, personalized responses to transactional inquiries and drive improvements across critical areas like supply chain management, bottleneck identification, and design innovation. AI’s proactive capabilities are also crucial, allowing businesses to anticipate issues and generate mitigation plans.

By deploying AI across essential workflows such as global trade management and supplier selection, companies can achieve unprecedented levels of efficiency and resilience. The ability to explore and test hypothetical scenarios using data further empowers businesses to prepare for impactful events through autonomous orchestration.

Facing Manufacturing Headwinds with “Pragmatic AI”

The manufacturing sector is grappling with a trifecta of challenges today: escalating operational costs, the complexities of global supply chains, and a widening skills gap. Recognizing this, QAD is championing a practical approach to AI that focuses on enhancing manufacturing operations through “Pragmatic AI” and low-code/no-code extensibility.

This approach empowers manufacturers to integrate data-driven solutions that adapt to their unique needs and improve decision-making without compromising existing workflows. This philosophy emphasizes delivering tangible results rather than getting caught up in theoretical applications.

A prime example of this is the direct embedding of AI into QAD’s core solutions. The company uses AI to recommend commodity classification codes for optimal cross-border taxation and customs clearance, demonstrating how AI can be seamlessly integrated to address specific, pressing operational needs. This leads to measurable improvements without disrupting established processes.

These additions to QAD’s platform enable manufacturers to achieve systemic improvements through better data visibility and optimizing critical areas like supply chain, production quality, and workforce execution.

Simplifying Custom Gen AI

The power of generative AI (GenAI) is undeniable, but the process of creating custom models can often be intricate and resource-intensive. NTT DATA Business Solutions is simplifying this process with its innovative GenAI Connector. This tool is designed to streamline the creation of custom generative AI models, allowing businesses to leverage their own data and select the most suitable large language models to rapidly build and refine AI applications.

The GenAI Connector significantly reduces the complexities involved in GenAI development by offering a user-friendly process. Users can effortlessly load business data, configure models, and iterate on their performance. This streamlined approach profoundly impacts ERP systems as it automates routine tasks like data entry, document processing, and report generation.

Additionally, the ability to analyze vast datasets allows for generating insightful recommendations, identifying hidden patterns and anomalies, and forecasting potential outcomes. Together, these features provide businesses with a significant competitive edge.

High-Impact GenAI Deployment

Recognizing the transformative potential of Generative AI, Inetum launched its GenAI Factory initiative in April 2024. This initiative is designed to support clients through every stage of their GenAI projects, from the initial spark of an idea to full-scale deployment. These services are structured around four key pillars: Assimilation, Qualification, Prototyping, and Scaling.

Through Assimilation, Inetum assists teams in selecting suitable models and technologies. Qualification involves a thorough evaluation of business challenges to determine the feasibility of GenAI solutions. Prototyping focuses on developing initial models to validate concepts. Finally, Scaling ensures the successful deployment of GenAI solutions, complete with training programs for seamless integration.

Inetum strategically collaborates with industry giants like Microsoft and SAP to integrate cutting-edge technologies into their offerings. The company’s focus is on industries where GenAI can deliver the most significant impact, including banking, energy, the public sector, and customer experience.

The Future is Intelligent

The integration of AI into ERP systems represents a fundamental shift towards the intelligent enterprise. As AI continues to evolve, its role in ERP will only become more profound, empowering organizations to operate with greater agility, efficiency, and foresight.

What This Means for ERP Insiders

Navigate the hype and focus on what’s best for you. While AI offers significant potential for ERP, users must be discerning about its application. Focusing on practical AI solutions, like those offered by QAD, that address real operational problems with a human-in-the-loop approach is key to avoiding the pitfalls of overhyped or ineffective AI implementations. Prioritize AI tools that offer tangible benefits and integrate seamlessly into your organization’s existing workflows rather than going for something new that might not ease your processes or increase your ROI.

Explore the potential of custom GenAI models. The emergence of tools like NTT DATA Business Solutions’ GenAI Connector and Inetum’s GenAI Factory make it easier for ERP users to explore the development of custom generative AI models tailored to their specific business needs. This opens opportunities to automate complex tasks, gain unique insights from data, and enhance decision-making in ways that off-the-shelf solutions might not fully address. Consider how custom GenAI models could provide a competitive edge by leveraging their proprietary data.

Embrace the evolution towards autonomous supply chains. The trend towards AI-enabled supply chains, including the development of AI agents, signifies a shift from reactive to proactive supply chain management. This means the potential for systems that can anticipate disruptions, optimize inventory levels, and even make autonomous decisions within defined parameters. Understanding this evolution and exploring how AI can enhance visibility and resilience in their supply chains is crucial for future success.

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IFS boosts ARR by 30% in Q1 on Industrial AI Performance https://erp.today/ifs-boosts-arr-by-30-in-q1-on-industrial-ai-performance/ Tue, 29 Apr 2025 13:36:09 +0000 https://erp.today/?p=129817 IFS achieved a 30% increase in annual recurring revenue and a 39% rise in cloud revenue in Q1 2025, driven by strong customer adoption of its Industrial AI initiatives, particularly through the IFS.ai platform, leading to a market valuation exceeding €15 billion.

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IFS has raised its annual recurring revenue (ARR) by 30% with a 39% annual increase in cloud revenue in the first quarter of 2025. The company’s recurring revenue share rose by 24% to 82% during the quarter.

The company’s strong financial performance in Q1 was led by significant momentum, driven by increasing customer adoption and the strategic impact of its Industrial AI initiatives, particularly through the IFS.ai platform. This growth trajectory has contributed to IFS’s market valuation exceeding €15 billion earlier this year.

Cloud-Based Solutions and AI Drive Growth

These figures underscore a clear trend: industrial enterprises are increasingly migrating to cloud-based solutions and integrating advanced AI capabilities into their core operations. The growth in recurring revenue, especially cloud revenue, highlights a strategic shift in technology adoption within these sectors, prioritizing adaptable technology stacks essential for navigating current global economic conditions.

The demand for IFS’s application of generative and agentic AI in industrial contexts is also a key driver of this performance. The company attributed this demand to the ease of adoption and deployment of IFS.ai, as well as the demonstrable value it delivers. Rather than merely piloting AI, IFS customers are operationalizing it at scale, leading to tangible improvements in productivity, business resilience, and strategic growth.

Looking Beyond Financial Performance

Market validation for the company extends beyond its financial metrics. The commitment from existing shareholders and investment from new minority partners reflect confidence in IFS’s strategy and its potential to capitalize further on the opportunities presented by Industrial AI.

In Q1, IFS added over 50 new customers, including prominent global organizations such as Total Energies, ArcelorMittal Projects Europe BV, Collins Aerospace, Goodyear, and Hitachi Energy. Securing these clients reinforces IFS’s position in critical areas like Enterprise Asset Management (EAM) and Field Service Management (FSM). This is further supported by industry recognition across its key segments.

IFS continues to focus on innovation tailored for industrial needs. The company introduced IFS Nexus Black at IFS Connect UK. This offering is a strategic program designed to accelerate high-impact AI adoption for complex challenges in asset-intensive industries. The initiative aims to facilitate the rapid development and deployment of bespoke AI solutions to achieve tangible outcomes quickly.

Commenting on the momentum, Mark Moffat, CEO of IFS noted that the integration of IFS.ai into the operations of leading industrial companies validates IFS’s leadership in EAM and FSM. He highlighted IFS Nexus Black as a demonstration of the company’s commitment to innovation and a catalyst for accelerated AI value creation specifically for the industrial enterprise.

What This Means for ERP Insiders

Industrial AI is transitioning to operational deployment. IFS’s results indicate that Industrial AI, as delivered through platforms like IFS.ai and accelerated by initiatives such as Nexus Black, is moving from conceptual stages to practical, scaled implementation within core business processes. This includes areas like asset management, field service, and operational planning. Organizations should evaluate how embedded AI can directly enhance daily workflows, automate complex decision-making, and provide predictive insights. Additionally, prioritize ERP and enterprise software solutions that offer deeply integrated AI capabilities specifically tailored to your industry’s requirements.

Tangible business value is being realized by IFS through real-world implementations. IFS customers have derived concrete benefits from the solutions provided by the company. For example, EDF Renewables is leveraging IFS Cloud and its Planning and Scheduling Optimization (PSO) engine to enhance asset management efficiency for large-scale clean energy operations. On the other hand, Noble Corporation is utilizing IFS.ai capabilities for predictive maintenance by analyzing extensive data to identify potential failure patterns offshore. These examples serve as evidence that Industrial AI can yield significant operational efficiencies, cost reductions, and improved strategic outcomes.

Market demand is shifting towards integrated, industry-specific intelligence. The prevailing market trend indicates a growing requirement for integrated intelligence within core enterprise systems, specifically tailored to the unique processes of industrial sectors. The increasing interest in agentic AI is particularly relevant for asset-intensive and service-centric industries. This necessitates that ERP systems evolve beyond basic record-keeping to become intelligent platforms capable of providing actionable insights directly within the user interface, informed by a deep understanding of industry nuances. While seeking solutions, customers must look for those built on a unified data model and composable architecture, which are foundational for effective, integrated AI and the development of autonomous processes.

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