How Cloud-Based ERP Makes It Easier for Smaller Manufacturers to Compete
It isn’t always easy for small to mid-sized manufacturers to compete against large manufacturers. Smaller manufacturers typically try to capitalize on niche industries that larger companies avoid, but with a smaller market footprint, it’s harder to compete against the larger players in the field.
Luckily, cloud-based ERP technology offers a solution. Cloud computing lets smaller manufacturers scale up quickly when needed. It also offers access to affordable, robust software sized perfectly to fit current business needs.
What Are the Advantages of Cloud-Based ERP?
Cloud computing is a term used throughout many industries, but not everyone fully understands the technology and the advantages it provides. Let’s take a look at five key benefits cloud-based technology can bring to smaller manufacturers:
- On-demand – An ERP based in the cloud is available on demand, around the clock, from anywhere in the world.
- Pooled service – Resources used for a cloud-based ERP solution are pooled. This means multiple companies securely share server space, which offers tremendous cost savings that get passed along to business customers.
- Scalability – A cloud-based solution lets you scale the size of your ERP solution based on your current business needs. As the manufacturing business grows, the ERP cloud solution can grow with it.
- Predictable cost – Cloud services are normally billed according to a subscription plan, so you know what you’re going to spend on software every month. These costs are easy to plan for.
- Accessibility – Since cloud services are web-based, everyone—from company executives to technicians on the floor—can access these systems not only inside the facility, but even from home or when on vacation. This can dramatically improve productivity.
All these advantages provide small to mid-sized manufacturers a competitive edge. Instead of investing large sums of money into expensive hardware and software for an ERP solution you’re not sure will work for you, you can instead start small with a powerful, robust cloud solution.
As your manufacturing business grows, you can scale up a solution that you already know satisfies all your needs.
The Impact of Cloud-Based ERP on Modern Manufacturing
Using an ERP solution on the cloud can positively influence every aspect of manufacturing. Well-rounded cloud-based ERP software provides accounting and financial management functionality where you can retrieve important manufacturing data. It lets you view reports that provide critical insights into your manufacturing processes.
Business intelligence lets you develop important forecasts, so you can shift internal resources accordingly and provide accurate information to your customers.
There are ERP modules to track resources in your facility like equipment, product, and raw material. It also lets you better manage your supply chain and create operational dashboards, so that executives, managers, and employees can be aware of the issues that matter most in their respective roles.
In the modern, high-tech manufacturing environment, cloud services provide 25% of all inputs involved in manufacturing a product today. The insights provided by cloud-based ERP systems make manufacturing operations far more productive, efficient, and safe. Thanks to all these benefits, small and mid-sized companies can keep up with supply and demand within their respective industries as well or better than large manufacturing companies.
In fact, cloud computing is the future. Over 90% of manufacturers across the world today use cloud computing as a business solution. By using a more affordable ERP solution based on the cloud, small to mid-sized manufacturers across the globe are more flexible and can dynamically shift their resources and processes to accommodate a changing market.
This gives smaller manufacturers a tremendous advantage over larger manufacturing companies that use more expensive and more rigid Commercial Off-The-Shelf (COTS) software packages.
Find Your Cloud-Based ERP Solution
If you’re looking for a scalable ERP solution based on the cloud for your own organization, Mindover Software can help you choose the best software for your needs with consultants across the country, including Austin, Boise, Dallas, San Antonio and Hartford, CT.
We offer implementation and support for cloud-based ERP, Acumatica. Acumatica recently received the highest customer satisfaction rating for Cloud Core Financial Suites in Gartner’s 2018 Magic Quadrant.
If you would like to see Acumatica in action, contact us for a demonstration.