74 | Sector Focus: Software
POWER COUPLE THE NEW
Ten-25 managing director Ian Oldrey explains how ERP and AI technology are reshaping the timber industry
You may already have an enterprise resource planning (ERP) system – if so, it’s likely that it’s the backbone of your business. For years, ERP systems were relatively stagnant in the way they managed and processed data. They relied on manual data entry, manual data processing and manual re-keying, after which you’d finally see some useable results to help with decision making. But, thankfully, times have changed and so has the software you use every day. ERP systems now provide automated input, processes, alerts and reporting, all saved within the Cloud and accessible anywhere, at any time, from any device. In the timber trade industry, ERP systems have improved supply chain management, financial management and compliance, all features which have used AI to enhance their productivity. Your ERP system will already be using AI
Above: AI should be used as a tool to help people, not as a replacement for them
to take on tasks that have previously required human intelligence to complete. It will create reports and dashboards to provide real-time visibility into production output, inventory levels, and sales, to allow your managers to make data-driven decisions promptly, identify bottlenecks, and allocate resources effectively.
INTEGRATING DATA
AI has been in the news virtually every week since the start of the year – more often than not about the dangers it represents to humanity. ChatGPT is either the beginning of the “end times” or the best thing since sliced bread, depending on who you ask. But AI isn’t really new. Spam filters, voice to text functions, and smart assistants like Siri, Alexa and Google are already working for us from our pockets, on our desktops, and in our homes and offices. In “traditional” industries, like the timber trade, AI may not have historically played a vital role. But in this era of rapid technological advancements, it’s becoming more and more important to embrace the benefits AI brings – to optimise operations, improve efficiency, and even enhance ever- important sustainability efforts.
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It will eliminate data silos by integrating your production, sales and finance departments, creating the “single version of the truth” by reducing manual data entry errors and enhancing cross-functional collaboration. It allows us to be more productive, provide better customer service, reduce human errors…the list goes on. And the list will keep growing, as AI is learning at a very fast pace. So as technology, and the industry, evolves, your ERP system must do too. Construction industry buying groups and trade associations are in the process of creating Product Information Management systems (PIM) filled with content-rich product data from the leading suppliers and manufacturers, such as pricing, availability, usage and imagery.
Many ERP systems are now able to integrate to suppliers’ and customers’ systems
to take advantage of PIM, which removes the need to re-key data and provides your systems with real time stock availability and pricing from suppliers.
And AI engines are being introduced to provide predictions and forecasting by using historical sales data, market trends and external factors. Think suggested stock reordering, customer targeting, optimising price levels – useful tangible actions that can really streamline the way a merchant operates.
Combine this with the data being made available in the industry PIM databases and you potentially have an exceptionally powerful tool. Outside of ERP, merchants can use AI to provide marketing ideas for specific target audiences, to create tutorials, chatbots, or even to plan out an optimal warehouse layout.
When taken into consideration alongside other technologies like augmented and virtual reality (AR and VR), machine learning and the ongoing trend of the internet of things (IoT) there’s a huge amount of creative potential there to be explored.
But it’s always worth asking whether, just because we can do something, we should – and while AI has the potential to bring significant advancements to the timber trade industry, it’s important to approach its adoption with caution.
At this early stage in its development, AI can have the tendency to fill in the gaps in its knowledge with estimations (a polite way of saying that it just takes a wild guess!), which could be a disaster when it comes to big business decisions. However, there’s no denying that by using artificial intelligence to automate repetitive tasks and streamline administration, you free up time to focus on creating human value. And that’s the key – AI should be used as a tool to help people, not as a replacement for them. So at Ten-25, we’ll be keeping a keen eye on the development of AI, and seeing where it can help us and our customers boost efficiency and productivity in each area of the business. ■
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