AI-driven ERP: a case study enhancing digitalization and automation of business processes

In today's digital age, where digitalization and artificial intelligence are becoming increasingly important, companies must leverage this potential and incorporate it into their production processes. This thesis investigates the transformative impact of artificial intelligence on Enterprise Resource Planning systems, with a specific emphasis on Microsoft Dynamics 365 Finance & Operations. The study begins with a comprehensive overview of ERP systems, tracing their evolution from the early days of Material Requirements Planning to the contemporary era of AI-integrated, composable ERP solutions. It explores the critical success factors and implementation steps necessary for successful ERP deployment, offering a detailed roadmap for businesses aiming to optimize their operations. The case study analyses a plastic extrusion company opening a new plant with a high degree of automation. This will be achieved through the integration of Microsoft's innovative ERP software and the warehouse management system, which utilises automated warehouses and self-driving vehicles to automate all warehouse movements. To achieve a high degree of digitisation and automation, the three main business processes, inbound, production and outbound, have been overhauled to ensure and optimise a complete integration between the two systems, ERP and WMS. A key area of focus is the alignment of theoretical and actual quantities. In particular, ERP works with theoretical quantities, both for the receipt of goods in the inbound flow and for the consumption of materials in production. The WMS plays a crucial role in communicating actual quantities received and consumed, taking into account yields and waste. A significant degree of focus has been directed towards waste management, with the implementation of an automated process to enhance the company's eco-sustainability credentials. In conjunction with this integration, a new article configurator was developed for the company, managed via PowerApp. The sales team uses this configurator to create sales orders, it guarantees make-to-order (MTO) production and enables high-volume production of articles customized to the customer's needs. The result is a streamlined process that ensures the uninterrupted flow of goods and processes throughout the entire operation.