Published on: October 26, 2021
There are many benefits derived from adding cloud manufacturing ERP software to your company. As manufacturers continue to face unprecedented challenges and disruptions to the global supply chain, having cloud manufacturing ERP systems can make a big difference to your company’s success.
What Is Cloud Manufacturing?
Cloud manufacturing combines the Internet of Things, supply chain management, and cloud computing into an integrated system for manufacturers. It improves tracking of resources, vendor management, sourcing raw materials, and inventory management. The software involved in cloud manufacturing improves a company’s ability to use all resources effectively including equipment, raw materials, and personnel to improve profits and productivity.
According to an Accenture paper, shifting to the cloud saved companies, on average, 10% of their previous costs before moving to the cloud. But it is the benefit to productivity that may make manufacturers take the next step to add cloud manufacturing to their companies.
5 Productivity Benefits of Cloud Manufacturing
There are many ways in which cloud manufacturing improves productivity.
- Enhances collaboration: According to a Cisco study, the use of cloud technology to enhance collaboration increases productivity by 400%. This extraordinary feat comes about from the use of multiple cloud technologies such as instant messenger channels, cloud ERP systems, and more. But the result is the same – by moving software to the cloud and making it easier for employees to collaborate, they can be more productive. Cloud software takes away many of the potential barriers to communication and collaboration.
- Reduces downtime: Cloud systems are more stable and reliable than onsite technology. If one part of a cloud system experiences trouble, others can make up for it, providing stable, reliable systems for users. They greatly reduce downtime and the resulting lost productivity experienced with stand-alone systems.
- Minimizes possible security threats: Although a cloud system cannot protect against mistakes or accidents (part of human nature), it can protect against automated bot attacks, DOS attacks, and other automated threats. Spreading out data across multiple servers also protects it better against physical threats such as natural disasters, fires, and similar events.
- Adapts to multiple devices: Cloud systems run through the internet and can work on almost any device. Instead of purchasing expensive hardware, companies can comparison-shop and purchase the most cost-effective devices for their needs.
- Shortens task time: Many common tasks, from generating and sending invoices to paying bills, can be automated with the right cloud system. Although it shaves off only minutes from a task, such automation does add up to minutes and hours saved which can be spent on other more complex tasks. It enhances productivity throughout many departments but especially in accounting and finance.
Improved Reports for Better Decision Making
Although not directly tied to productivity, another great benefit of cloud manufacturing systems is their improved reporting ability. Either through better reports or the addition of business intelligence (BI) systems, the reports generated from cloud ERP systems can provide up-to-date, detailed data that enhances decision making. Managers don’t need to recreate reports in spreadsheets. Often, reports can be generated directly from the system that meets their needs, or with minimal tweaking, the desired output can be generated.
Manufacturers seeking a competitive edge can find it in many ways. One way that offers better productivity in many areas of a company is cloud manufacturing. If you’d like to explore cloud manufacturing solutions, contact us today. We offer a quick start guide to cloud manufacturing that might answer many of your questions as well as great resources to help you with cloud implementation.
Mindover Software provides ERP software consulting, training, and implementation. For more information, please, contact us or call 512-990-3994.