Cloud ERP How Manufacturers are Adapting to the Cloud Way

How Manufacturers are Adapting to the Cloud Way

Manufacturing companies have unique and complex processes and workflows that require functionalities that a standard ERP application can’t provide. These types of companies require an ERP application that is   custom designed – with industry-specific workflows, forms and data formats in addition to user-friendly tools for customization. Manufacturing companies today are not looking specifically for a SaaS-based solution; they are choosing Cloud ERP products after comparing it with other traditional products.

Cloud ERP offers businesses a tremendous advantage for specific applications such as service levels, customisation and process optimization. Key factors such as operating costs, regulatory compliance and dynamic market changes are the reasons why a manufacturer would consider moving to Cloud.

Companies today are adopting Cloud-based ERP platforms and products, which integrates a large mix of useful add-on applications, widgets, templates, workflow tools and integrations to extend the core functionality. However this growth has been slow for a variety of reasons. When it is time to replace legacy systems, manufacturing companies are concerned about a number of core issues.

Cloud-based ERP has the usual cloud-related concerns around security and availability, but even more so for considerations specific to each manufacturer. Their highly tailored workflows, business rules and data structures — particularly those with multiple sites — require a level of customization not yet found in most multi-tenant applications.

Cloud ERP compared to traditional ERP software offers an array of benefits and enables manufacturers to improve efficiencies, reduce costs, and provide visibility to enable managers to make informed decisions. Most attractive benefit of cloud ERP is the price – the low capital investment requirement of cloud ERP allows these manufacturers access to cloud ERP software that they couldn’t afford to install in-house due to tight budgets. According to a research report about 22% of business software installed in a Manufacturing company today is SaaS, compared to 17% for other industries.

The Cloud ERP solution works perfectly for new manufacturing companies, which are starting up, as they are predisposed to move into the cloud because they don’t have the legacy of old systems.

Here is how manufacturing companies utilizing cloud ERP platform to remain flexible, scalable and profitable.

1. Use analytics and reports for capturing company wide knowledge & intelligence Multi-functional departments characterize manufacturing, each department having its own processes & rules. Therefore a single Cloud ERP system capturing the essence of activities in each department and providing that business intelligence to management is the key to remain competitive.

2. To support different business models Manufacturers use cloud based ERP system to deliver as per different business models like build-to order, configure-to-order and engineer-to-order. This helps manufacturers to remain flexible and adapt to dynamic market demands.

3. Accelerating new product development strategies to attain time-to-market objectives Using cloud-based platforms manufacturers can accelerate time and ensure high quality starting from design phase.

4. Automating customer service to streamline new order inquiries, order tracking & support Customer support is the last mile, which not only infuses further demand but also drives product innovation through feedback mechanism. With cloud ERP can automate customer support and remain sensitive t changing customer preferences

5. To unify global operations Manufacturers with global presence must adapt to cultures and taste to get accepted in local markets. Cloud ERP helps to bring standardization in manufacturing operations and processes and the diversity each local setup has.

6. To gain greater efficiencies in material planning, vendor management, inventory management and reduce logistics costs. Manufacturers are increasingly relying on cloud ERP to bring transparency in operations so that efficiencies and productivities are improved in these core-manufacturing functions

7. Achieve economies of scale Inter-functional intelligence, comprehensive reporting and proactive market trend analysis with Cloud ERP enables manufacturers to plan production to achieve economies of scale

8. Multiple Languages and Currency Traditional ERP systems have limits, especially related to supporting multiple languages and currencies, something, which the legacy systems were not built to do. Today Cloud ERP systems let companies expand internationally through Software as a Service (SaaS) quite easily and cost effectively.

Cloud ERP software offer a seamless way to absorb customizations which are typical for manufacturing companies. This helps them easily get ported from version to version. This takes a significant investment and time with traditional on-premises systems.

Cloud-based ERP products such as ERP in Cloud gives manufacturing companies the capabilities of an on-premises system without the up-front price tag, and helps businesses become more nimble.

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