The following article is a summary and compilation of the panelists' answers to the questions posed during the panel "Smarter, Faster, Stronger: AI Meets ERP for Manufacturing Excellence," presented at FABTECH 2025 on September 10th.
If you've ever felt overwhelmed by the buzz around artificial intelligence (AI) and digital transformation, you're not alone. At this year's FABTECH conference, a panel of seasoned ERP (Enterprise Resource Planning) and manufacturing professionals came together to demystify how AI is not just a hot topic, but is a tool being used alongside ERP systems to drive real results in manufacturing.
Whether you're starting to explore AI or wondering how it fits into your shop floor operations, this article will guide you through key takeaways from the session.
AI in Manufacturing: It's Not Science Fiction Anymore
Ten years ago, AI felt like something out of a movie or you'd read about in a book. Today, it's a tool that manufacturers use to solve everyday problems and automate manual work, from predicting machine failures to optimizing inventory. If you've been hesitant to try tools with AI because of fears that it's going to take over, the good news is AI isn't here to replace you or your people. It's here to work alongside your team, helping you make smarter decisions faster and redefine value in your facility.
Panelist Logan Carolan, Solution Consultant at Infor, put it simply,
"AI is just a tool that works alongside your data to help you solve more problems and make more money."
Start with Strategy, Not Software
Before jumping into AI, it's essential to ask: Why do we want or need it? Are you addressing a real challenge, or is it just the latest trend? Panelist Nick Rolf, Senior Account Executive at SolutionsX, emphasized that successful AI adoption starts with a clear strategy. That means:
- Mapping out your current systems (even if they're a mix of spreadsheets, legacy software, and handwritten notes).
- Identifying where your biggest pain points are.
- Ensuring leadership is on board, driving change, and fostering a culture of user adoption for new technologies.
- Connect with your technology vendors to understand their development roadmap and how it will impact your business — not just the one the sales representative presents to you. Instead, cut through the sales speak by understanding the actual deliverables, timeline, and what they are exploring.
At the heart of your digital transformation, consider your ERP as the core component. Everything from maintenance logs to customers' orders should feed into it. That's your single source of truth.
Where AI is Already Making an Impact
Artificial intelligence is already helping manufacturers in big ways. Here are a few examples shared by the panel:
- Predictive Maintenance: Identify equipment issues before they lead to downtime and impact your bottom line.
- Forecasting & Inventory Optimization: Avoid overstocking, under-delivering, and generate trends based on your data and the market.
- Automated Quoting: Read CAD drawings and generate accurate quotes in seconds.
- Accounts Payable Automation: Save time by matching invoices, flagging discrepancies, and even initiating payments.
- Internal Chatbots: Help new employees get up to speed quickly by answering questions about products and processes.
Real Success: Combilifit's Story
One standout example came from Combilift, a global forklift manufacturer. They used AI to improve how they estimate service parts for customers. By integrating AI with their ERP system, they saw:
- 30% increase in first-time fixes.
- 40% reduction in service job costs.
- 30% increase in revenue per transaction.
And they did it in just 60 days. The key? They started with a clear business problem and worked cross-functionally to solve it.
A Cross-Functional Team is the Secret Ingredient
AI projects aren't just IT. Success depends on involving people from every department, including engineering, finance, HR, and operations. As Joey Himes, Senior Solution Consultant, shared,
"If we only get one perspective and one input, how likely is it that AI is going to get it right?"
Cross-functional collaboration ensures AI tools are trained with the right data and that the solutions actually work across the business.
Don't Skip Security and Compliance Considerations
With AI moving so fast, it's easy to overlook the risks. But if your team is using public tools like ChatGPT, they might be unknowingly sharing sensitive company data. Joey gave a great example, stating,
"You could have employees who are asking ChatGPT to provide an itinerary for their next trip to Europe, and then turn around three minutes later and ask it some question about pricing models or commission structures."
Our recommendation is to protect your business by:
- Set clear governance policies.
- Select secure platforms that align with your specific compliance requirements.
- Ask the experts who are planning.
What's Next? Staying Grounded and Focused
We get it. It's tempting to chase the latest AI trend, but the panelists offered a refreshing reminder: It's not a race. You don't have to do everything at once. Instead:
- Start small with one business challenge.
- Build momentum with quick wins.
- Empower your team to use AI responsibly and creatively.
Nick compared it to the early days of lean manufacturing,
"We empowered people to create value streams and make things visual. We can do the same AI."
AI isn't just for tech giants, it's for manufacturers ready to take the next step. Whether you're running a job shop or a global operation, the key is to start with your people, your processes, and your goals.
To Start, Ask Yourself:
What challenge do I want to solve?
What data do I already have?
Who needs to be involved?
From there, you're not just using AI, you're building a smarter, faster, stronger operation that is manufacturing excellence.
