Manufacturers today are faced with multitude of challenges, from accurately predicting and responding to demand, to finding ways to cut costs and increase profit margins. While technology has created a global market place for consumers, local manufacturers are now burdened with the challenge of having to compete with lower offshore prices. This challenge has led to the need for manufacturers to differentiate themselves and achieve a competitive positioning by demonstrating unprecedented quality and efficiency methods.
For the manufacturing business, an ERP system, presents an easier way to quickly automate manufacturing processes and connect all business areas, from the warehouse all the way to the production floor and delivery of finished goods. While ERP systems help businesses stay connected, without the ability to truly connect anywhere, anytime, there might be a time lag with communicating vital information especially, in an industry where are so many moving parts.
Manufacturers today are turning to cloud ERP solutions to help improve workforce productivity while on the go, reducing the Total Cost of Ownership (TCO) and ongoing IT maintenance costs with Cloud ERP systems. Cloud ERP systems, either cloud-based or cloud hosted, presents a way for manufacturing companies to communicate and make better data-driven decisions.
Looking at ERP systems for your manufacturing business? Download the Manufacturing ERP Selection Guide to help with your decision-making.
How is Cloud ERP Helping Manufacturers?
1. Shorter ERP Implementation Times
Many a time, the path to less resistance when implementing any software solution including ERP systems is to do so in a well, planned process that includes, training employees and implementing the solution, in the fastest possible time with little to no disruption to the day-to-day business processes. However, with certain on-premise ERP implementations, because the change affects so many areas of the business, the entire ERP implementation process can be laborious and may take a while to have everything up and running the way it’s supposed to. During that period of time, employees, are stuck in a “software-limbo” stage not knowing which systems to use – the old one that they know, or the new one that promises to make their lives better but is not fully functional yet. Cloud ERP systems helps to figuratively speaking “rip off the bandage” faster and help users get acclimated to their new ERP systems. Additionally it reduces the time with which there could be a disruption in business processes or duplication of efforts.
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2. On The Fly Decision Making and Business Intelligence
The key differentiator with cloud ERP solutions is the instantaneous ability to connect with all your core business systems provided you have access to an Internet connection. The benefit allows manufacturing businesses of any nature, whether made-to-stock or made-to-order quickly and efficiently gain access to valuable business information that can help in improving all areas of the business including, inventory management and identifying bottlenecks in the entire manufacturing process in real-time. As an added benefit, manufacturers can utilize easy access to business data to identify the changes in demand and trends to create a cost-efficient, Just-In-Time (JIT) manufacturing process.
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3. Improved Customer Service
Cloud ERP solutions improves communication and connection between the customers and manufacturers. With the automation of many manufacturing processes including the reporting and replacement of defective products, customer satisfaction can be enhanced without time or location constraints.
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In Conclusion
Beyond the general benefits of cloud computing including lower upfront investment costs, and the ability to focus on managing core business processes instead of routine IT server maintenance tasks, manufacturers choosing to host an on-premise ERP solution in the cloud or using a cloud-based ERP solution enjoy the benefits of a greater speed to execution, flexibility, and productivity that could tremendously affect the entire business’ bottom line.