Manufacturing Companies See Value in Cloud ERP
While the manufacturing industry has one of the earliest adopters of enterprise resource planning (ERP) software, recent studies have found that they have been slower to move their ERP solutions to the Cloud. According to a study performed in 2010, only 5% of manufacturers had moved to the Cloud. Three years later, that number has not gone up much. One reason for this slow adoption is that ERP software vendors have failed to deliver solutions that meet the needs of manufacturers. While many companies in the retail and service firm industries have moved to the Cloud, manufacturing companies required an additional level of complexity that the early Cloud ERP solutions failed to provide.
Manufacturers also had additional concerns regarding moving their ERP solutions to the Cloud. Many worried about the security, and many others were concerned about the performance and uptime capabilities of Cloud ERP options. In response, Cloud ERP software vendors have attempted to alleviate these concerns by offering security certifications and offering uptime agreements.
Despite early reaction, more manufacturing companies moving to Cloud ERP
Despite their initial concerns, manufacturing companies are beginning to see the value of Cloud ERP solutions. Cloud ERP requires no manual back-ups, patches or upgrades, relieving companies of this periodic task. The total cost of ownership (TCO) for these solutions is often low since companies do not have to purchase and maintain equipment or hire additional IT staff.
Cloud ERP also offers manufacturing companies the flexibility they need by allowing sales reps to access real-time information no matter where they are, whether they are in or out of the office. Warehouse workers can also benefit from this flexibility by tracking data on mobile devices, such as phones or tablets. The flexibility offered by Cloud ERP solutions streamlines operations and increases visibility among all departments. If your business has multiple locations, Cloud ERP can even help you manage your resources among all of your locations.
Cloud ERP is also cost prohibitive. Manufacturing companies that have previously written off ERP software due to its high cost are beginning to adopt Cloud ERP at increasing rates. The software can also be used anywhere. When a new company or location is added, that company simply needs to plug-in to the network. That’s all. There is no need for the software vendor to be on-site. Cloud ERP makes the growth process easier and allows manufacturing companies to increase their competitiveness.
In the past, warehouse workers, sales reps, and accounting/HR employees were isolated in their own environments. If they needed to share information, they had to get the data from the source department. Each group worked with their own data, and their reports were run on entirely different systems. With Cloud ERP, departments across the company can communicate and share information seamlessly. It provides visibility into all aspects of the company, from the manufacturing floor to sales and even HR. The information and data is gathered in real-time so managers and executives can see what is happening at any point in time. This will improve decision-making and provide manufacturers with the competitive advantage they need in today’s marketplace.
The Cloud has transformed the way many businesses perform and operate. If your manufacturing company could benefit from a Cloud ERP solution, give us a call today at (512) 990-3994. Our newest product addition, Acumatica, is the perfect Cloud ERP solution for small and mid-sized manufacturing companies looking for an affordable way to invest in ERP. Contact us to learn more about the benefits of investing in Cloud ERP for your manufacturing company.