**London**: A report highlights the critical need for manufacturing businesses to upgrade outdated ERP systems for improved supply chain management and efficiency. Industry experts emphasise the integration of AI and predictive analytics as key drivers in transforming financial operations and enhancing organisational success.
Manufacturing industries are grappling with the challenges posed by outdated enterprise resource planning (ERP) systems, which are increasingly seen as impediments to operational efficiency. A report by PYMNTS.com highlights the urgent need for businesses to upgrade these legacy systems in order to enhance supply chain management, inventory accuracy, and decision-making speed.
According to Geoff Brannon, CFO at Rootstock Software, the current landscape demands a shift towards modernisation driven by automation, real-time data, and artificial intelligence (AI). “The majority of manufacturers are considering AI in the near future. The momentum is undeniable,” Brannon noted during an interview for PYMNTS’s series “A Day in the Life of a CFO.”
AI technology is being seamlessly integrated within ERP systems to automate essential administrative functions, including inventory procurement and payment processes. Brannon emphasised the rapid advancement of technology, stating, “It’s exciting to see how it’s transforming industries traditionally tied to legacy systems.”
Within financial departments, the transformation is equally substantial. The evolving responsibilities of CFOs now require them to focus on collaboration with various business functions. “In the past, CFOs were seen as senior accountants. Today, the role is about partnering with the business,” Brannon explained, highlighting the need for finance professionals to support organisational goals effectively.
Rootstock has adopted Power BI to refine their approach to pipeline development by analysing sales execution and pipeline metrics. Brannon described how the company has constructed a comprehensive reporting framework that allows them to dissect data in multiple ways. He remarked, “The iterative process has been invaluable for refining our approach.”
The use of AI is also making inroads into Rootstock’s customer support systems. “We’re using AI to handle initial customer support tickets. It’s efficient and uses natural human language to the point where customers may not realize they’re interacting with a bot,” Brannon stated. Furthermore, automation within Rootstock’s finance function enables the team to better manage accounts payable processes, shifting their focus to more strategic activities. “Automating these processes frees up our team to focus on higher-value activities,” he said.
Rootstock’s strategic goals include achieving significant top-line growth, aiming for a 25% to 35% annual increase. Brannon acknowledged that this requires a diverse strategy involving enhanced product development, effective go-to-market strategies, and partnerships. Recognising the contributions of Chief Technology Officer Robert Rostamizadeh, Brannon indicated that efforts have been made to prioritise feature development over mere bug fixes.
Additionally, Rootstock has expanded its reseller network, which enables them to cater to both smaller clients and larger enterprises with complex needs. Brannon identified this expansion as a significant advantage for Rootstock’s growth strategy.
As the financial landscape continues to evolve, Brannon, drawing from his experience as a former treasury manager, expressed optimism about the current capabilities of banking platforms compared to previous decades. “We’re fortunate to have strong lender relationships and a team that helps us negotiate and secure the resources we need,” he said.
Looking ahead, Brannon sees predictive analytics as a transformative tool for CFOs. “We’re transitioning from generative AI to predictive AI, which offers forward-looking analysis to run the business more effectively,” he remarked. This shift towards predictive analytics represents a promising avenue for enhancing operational effectiveness and supplier relationship management in the future.
Source: Noah Wire Services
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