AI is enabling ERP platforms to become an active participants in production planning and warehouse management. AI is enabling ERP platforms to become an active participants in production planning and warehouse management.

Beyond ERP: how AI is connecting the smart factory

By Carrie Tallett, Senior Product Manager at Forterro – Orderwise

Enterprise Resource Planning software is undergoing one of its biggest transformations in decades. Rather than simply recording transactions, AI is enabling ERP platforms to become an active participants in production planning, warehouse management and supply chain decision-making, helping manufacturers respond more quickly to changing demand and operational challenges.

Adopting AI within ERP solutions represents the next stage of operational development, with the potential to improve overall visibility and traceability of production and warehouse operations within organisations. AI has created space for business to introduce a unified system, upskill their staff, and implement new processes that connect ERP with operational execution

Connecting people and processes with AI

Manufacturing data is often spread across ERP, warehouse systems, production equipment and paper records, making it difficult for production, inventory and supply chain teams to work from the same operational picture. The result is reduced visibility, slower decision-making and weaker traceability.

AI is not replacing ERP solutions or operational expertise. Instead, it is extending the capabilities of existing systems by introducing intelligent agents that can analyse information, identify patterns and support operational decision-making.

This is providing the opportunity to leverage AI to deliver greater value, with records that are easily accessible for auditability and traceability, while enabling information from enterprise systems to inform activity across production and warehouse operations

Closing the loop with AI

AI is helping manufacturers create unified operational platforms that connect enterprise planning with production, warehouse and supply chain activity.

This creates the potential for closed-loop automation between enterprise systems and operational processes. Information captured on the factory floor or in the warehouse can inform ERP planning and decision-making, which can then guide activity back across production, inventory and logistics operations.

On the factory floor, AI can help planners respond automatically to changing demand, inventory levels or equipment availability. Rather than manually updating production schedules or warehouse priorities, manufacturers can use AI-driven insights to make faster operational decisions while maintaining production continuity.

If an unexpected machine failure occurs, AI could automatically update production schedules, notify warehouse teams of revised material requirements and recommend alternative manufacturing routes, reducing disruption without relying on manual intervention.

Using AI to power predictive warehouses

Looking forward, business should leverage AI automation to improve operational efficiency and remove friction, ultimately reducing the cost to serve.

Warehouse automation can often increase throughput and quality, while building resilience. However, supply chain volatility means manufacturers need greater visibility into supplier costs, availability and inventory levels.

AI can facilitate this understanding. Over time, a combination of AI enabled, automated warehouses will increasingly be able to predict the price of supplies and recommend the most cost-effective time to make a purchase and keep track of stock and its movement. Connected with ERP and production systems, this intelligence can support supply chain optimisation by helping organisations align purchasing, inventory and warehouse activity with changing operational demand.

Within smart factories, AI-enabled ERP can also bring together production, inventory and equipment data to provide a clearer view of operations. This can support predictive maintenance by helping teams identify potential issues earlier, plan maintenance around production requirements and reduce avoidable disruption.

With this focus shift, warehouse automation has the potential to become a critical tool for day-to-day logistics awareness for manufacturers and no longer something which is only available to enterprise level organisations. As AI becomes more tightly integrated with warehouse automation, these technologies will become increasingly accessible to manufacturers of all sizes.

From insight to operational execution

AI is accelerating the shift from disconnected operations to unified, insight-driven organisations.

When embedded into modern ERP and operational workflows, AI improves data visibility and traceability, shortens reporting cycles and helps teams focus on higher-value activities such as quality improvement, process optimisation and innovation.

The next logical step is extending that intelligence beyond planning and administration into execution through warehouse automation and connected production environments. By combining unified systems with AI-driven forecasting and real-time decision support, organisations can respond faster to demand changes or challenges. That means better informed supplier decisions, smoother throughput, and fewer disruptions across the supply chain. Ultimately, creating a closed loop between ERP intelligence and operational execution can help manufacturers build smarter, more responsive and resilient operations.

Author biography:

Carrie Tallett is Senior Product Manager at Forterro – Orderwise, where she leads the strategic development of ERP and WMS solutions designed for the needs of growing businesses in wholesale, distribution, retail, and eCommerce. She has over a decade of experience across product management, customer success, and operational strategy.