Modernizing Manufacturing ERP Systems with AI Intelligence

January 29th, 2026 Intech Systems AI in ERP Systems

A success story on transforming manufacturing operations, productivity, and decision-making at scale

Manufacturing ERP transformation is no longer just an IT program. It has become a core business strategy for improving operational efficiency, strengthening quality control, and enabling faster, more confident decision-making. McKinsey has found that productivity gaps between high- and low-performing manufacturers can widen by as much as 8X as task complexity increases. Fragmented processes and disconnected systems are often key contributors to this performance gap at scale.

In this article, we examine how a US-based specialty wire manufacturer partnered with Intech Systems, a three-cloud Microsoft-certified partner, to execute a phased manufacturing ERP transformation that accelerated modernization and enabled data-driven growth.

Operational Constraints That Emerged as the Business Scaled

As the manufacturer continued to scale, limitations in its existing manufacturing ERP environment became more apparent. Processes that once supported growth began to introduce friction across quality, productivity, and reporting. Three key constraints began to impact day-to-day operations and leadership visibility.

1] Quality control remained manual and loosely connected to ERP workflows

Quality control relied heavily on pen-and-paper processes and inconsistent documentation across teams. Inspections were not systematically tied to procurement and production transactions within the ERP system, making traceability harder to maintain as volumes increased. Without built-in quality checks, issues were often identified too late, increasing rework, defects, and compliance risk.

2] Knowledge work productivity became a growing bottleneck

Despite having core ERP systems in place, a significant amount of time was absorbed by routine knowledge work. Drafting emails and documents, preparing reports, reviewing data, and assembling presentations slowed collaboration and throughput. The challenge was not complexity, but repetition. As the organization grew, this manual effort became increasingly visible and difficult to scale.

3] ERP data fragmentation limited reporting and operational visibility

Operational and quality data lived across multiple systems, including QC data stores, ERP databases, Azure SQL, SQL Server, and a mix of cloud and on-premises sources. Reporting required stitching together inputs from different platforms, and leadership lacked a single, governed view of manufacturing performance. These ERP data silos delayed insight delivery and made it harder to consistently track KPIs across quality, operations, and the broader business.

Together, these issues made it clear that incremental fixes were insufficient and that a deliberate manufacturing ERP modernization was needed to support growth at scale.

How the ERP Modernization Journey Took Shape

The ERP transformation progressed through a series of focused initiatives, each addressing a specific constraint while laying the foundation for the next.

Step 1: Fixing Quality Control at the ERP Foundation

Quality control became the natural starting point. Accuracy, traceability, and consistency were essential to operations, yet existing QC processes were manual and loosely connected to ERP workflows.

Working within Dynamics 365 Business Central, a custom Quality Control application was implemented using Power Apps, Power Automate, and built-in Business Intelligence capabilities. Manual, paper-based quality checks were replaced with structured, ERP-integrated workflows tied directly to procurement and production transactions.

1. Item-specific quality parameters ensured inspections were triggered automatically
2. Quality records were generated immediately after transactions, reducing delays and handoffs
3. Standardized quality test certificates replaced inconsistent documentation
4. Historical quality data was stored securely to support audits, reporting, and analysis

Quality control shifted from a reactive, corrective activity to a proactive, preventive control embedded directly within the manufacturing ERP environment.

Microsoft-reported Benchmarks Indicate:

1. 20–30% reduction in defects
2. 10–15% improvement in operational efficiency
3. 10–20% cost savings from reduced rework, scrap, and warranty claims

Step 2: Improving Productivity Where Work Actually Happens

With stronger ERP processes in place, productivity constraints became more visible. A disproportionate amount of time was still being absorbed by routine knowledge work across communication, documentation, and reporting.

To address this, Microsoft 365 Copilot was operationalized across everyday work, with enablement focused on real workflows and governed usage rather than broad AI experimentation.

1. Routine activities across communication, documentation, analysis, and reporting were streamlined
2. Adoption focused on areas where time was consistently lost
3. Security, compliance, and data protection controls were maintained throughout

As a result, first drafts were produced faster, information was summarized more efficiently, and routine analysis required fewer manual steps.

Microsoft-reported benchmarks indicate:

1. 72% improvement in idea generation

2. 57% increase in creativity

3. 87% faster first-draft creation

4. Approximately 70% productivity improvement (market trends)

5. 73% of users are completing tasks faster

Step 3: Unifying ERP Data for Decision Intelligence and Visibility

Even as quality and productivity improved, operational and quality data still lived across multiple systems, limiting reporting and leadership visibility.

Using Microsoft Fabric and OneLake, data from Dynamics 365 Business Central, the Quality Control application, Azure SQL, SQL Server, and other operational sources was unified into a single analytics foundation.

1. A centralized Lakehouse architecture enabled governed, scalable access to trusted data
2. Power BI dashboards provided consistent visibility across quality, operations, and KPIs
3. A flexible, pay-as-you-go capacity model ensured scalability without over-provisioning

Microsoft-reported Benchmarks Indicate:

1. 85% of users experience improved data management
2. 78% faster time to insight
3. The analytics environment was deployed in two weeks

For the first time, operational data across the organization told a single, coherent story.

What Made This Manufacturing ERP Transformation Successful at Scale

Manufacturing ERP initiatives succeed when execution, adoption, and data alignment move together. In this engagement, progress was sustained by addressing operational improvements, productivity enablement, and analytics as a connected system rather than isolated efforts.

As a three-cloud Microsoft-certified partner, Intech Systems worked alongside the manufacturer throughout the journey to ensure changes were executed, adopted, and governed in day-to-day operations.

This included:

1. End-to-end delivery across Dynamics 365 Business Central, productivity, and analytics
2. Integration and customization using Power Apps, Power Automate, Power BI, Microsoft Fabric, and OneLake
3. Structured adoption and change management to ensure real usage
4. Rapid execution with measurable outcomes
5. Ongoing optimization and integration expertise across cloud and on-premises systems

Organizations that approach modernization with this mindset are better positioned to scale operations, improve visibility, and make confident decisions over time.

If you are evaluating how to modernize your ERP landscape, Intech Systems can help translate strategy into execution. Connect with Intech to shape a practical transformation roadmap for your manufacturing systems.