Cloud ERP In Manufacturing: Why Join The Movement?

Cloud ERP in Manufacturing: Why Join The Movement?

The manufacturing sector of the economy was an early user of ERP systems when the software first emerged, but surprisingly, most manufacturers have been slow to adopt cloud ERP. By 2010, only about 5% of manufacturing companies were using cloud ERP. One reason for this slow adoption is that many ERP providers were slow at developing the solutions that manufacturers needed. Although numerous retail and wholesale companies, as well as service firms, have adopted cloud ERP, manufacturing companies have an extra layer of complexity: Myriad functionality needs and different design considerations which necessitate more specialized solutions.

Manufacturers have other concerns about moving to the cloud. Despite the fact that they are more likely to be hacked on their in-house solution, they worry about the security of their data in the cloud. Cloud providers have attempted to alleviate these concerns by offering security certifications that guarantee the privacy and security of company information. There is also concern about the performance and uptime capabilities of cloud options, but today, many providers are offering service level agreements of 99% uptime.

These concerns aside, cloud ERP offers manufacturers numerous advantages. With cloud services, manufacturers don’t have to perform their own back-ups, patches, or upgrades. Often, the total cost of ownership is lower than on-premises solutions since companies do not need to purchase and maintain complicated equipment or keep dedicated IT staff on hand. Many ERP vendors offer more reliable tech support than what companies can have in-house.

Cloud ERP also offers the flexibility that many manufacturers need, allowing sales reps to access real-time information globally and employees on the manufacturing floor to keep track of data with tablets. It offers the potential to coordinate just about every aspect of a manufacturing environment so that different departments can work together more seamlessly and effortlessly. Cloud ERP can be particularly helpful in the distribution process since it lets companies open a new distribution center and bring it online quickly. If your business has different locations, cloud ERP can help you manage your distribution resources across many locations.

Cloud ERP is particularly beneficial for small and mid-sized businesses, many of which have been relying on smaller financial packages and spreadsheets to keep track of data because the cost of an ERP system had been prohibitive. Many small businesses are discovering that ERP is affordable and they are becoming aware of the advantages it offers. A recent survey by IDC Insights discovered that 25% of small businesses are implementing cloud ERP and another 20% are considering a move to the cloud.

In the past, R&D, sales people, workers on the shop floor, accounting, and human resources were on their own little islands. Each group would have a small data set that was part of a larger picture. Since reports were run on different systems, each report would get a different result. With ERP, you can have a common language because everyone is using the same information. Cloud ERP provides visibility across all sectors of an organization, from the manufacturing floor to sales and even suppliers, which is a huge advantage. Real-time data gathering allows for more informed decision making; in an increasingly competitive global marketplace, manufacturers need every advantage they can get.

Another advantage cloud ERP offers: It can be used anywhere. Consider a company that buys smaller businesses worldwide. When they add a new company, they can simply say, “Here is our company network, just plug in.” There is no need for vendor resources to be on site. Cloud ERP makes the process much simpler and accelerates the speed to market so they can be more competitive. This business model could be used worldwide.

Cloud ERP has the potential to transform the way companies do business, from manufacturing and distribution to sales. It has the capability to level the playing field between small and midsize businesses and their larger competitors. If your company is not already part of the 45% of companies implementing or investigating cloud ERP, it may be in your best interest to check it out.

By John Schlemmer,

John Schlemmer has over 30 years of experience in the sales and marketing of Manufacturing ERP and Supply Chain Execution software; marketing these technology products and services to high-growth, emerging, mature and competitive enterprises. His specialty is in building and managing sales organizations; both direct and through channel organizations. He has held sales and management positions for a variety of software companies which has given him both industry expertise as well as extensive knowledge of available solutions in the marketplace. He is currently Vice President of Sales and Marketing at JAAS Systems, an Acumatica Cloud ERP ISV.

Follow Us!

CloudTweaks

Established in 2009, CloudTweaks.com is recognized as one of the leading authorities in cloud computing information. Most of the excellent CloudTweaks articles are provided by our own paid writers, with a small percentage provided by guest authors from around the globe, including CEOs, CIOs, Technology bloggers and Cloud enthusiasts. Our goal is to continue to build a growing community offering the best in-depth articles, interviews, event listings, whitepapers, infographics and much more...
Follow Us!

Sorry, comments are closed for this post.

Comics

At CloudTweaks, we're plugged into the cloud, the internet of things and all that the web has to offer. From wearable technology, to mobile computing, cloud computing and big data, CloudTweaks is your source for updates and news on the most innovative technology.

Popular

Top Viral Impact

Cloud Infographic – The Power Of Cloud Disaster Recovery

Cloud Infographic – The Power Of Cloud Disaster Recovery

Cloud Infographic – The Power Of Cloud Disaster Recovery Preventing a Cloud Disaster is one thing. Recovering from a disaster is a whole other area of concern. Today’s infographic provided by CloudVelox outlines some best practices and safeguards in order to help your business make more informed decisions. About Latest Posts Follow Us!CloudTweaksEstablished in 2009,…

Cloud Infographic – The Future Of Big Data

Cloud Infographic – The Future Of Big Data

Cloud Infographic – The Future Of Big Data Big Data is BIG business and will continue to be one of the more predominant areas of focus in the coming years from small startups to large scale corporations. We’ve already covered on CloudTweaks how Big Data can be utilized in a number of interesting ways from preventing world hunger to…

5 Ways The Internet of Things Will Drive Cloud Growth

5 Ways The Internet of Things Will Drive Cloud Growth

5 Ways The Internet of Things Will Drive Cloud Growth The Internet of Things is the latest term to describe the interconnectivity of all our devices and home appliances. The goal of the internet of things is to create universal applications that are connected to all of the lights, TVs, door locks, air conditioning, and…

Cloud Computing Adoption Continues

Cloud Computing Adoption Continues

Cloud Computing Adoption Continues Nowadays, many companies are changing their overall information technology strategies to embrace cloud computing in order to open up business opportunities.  There are numerous definitions of cloud computing. Simply speaking, the term “cloud computing” comes from network diagrams in which cloud shapes are  used to describe certain types of networks. All…

Featured Sponsors

Watching You Shop: Stores And Mannequins “Read” Their Customers And Respond

Watching You Shop: Stores And Mannequins “Read” Their Customers And Respond

Watching You Shop The mannequin in the store window stares blankly ahead as shoppers look at the clothes it is dressed in and contemplate a purchase. One shopper makes some comments. “It’s nice. I wonder if they have my size.” Another takes a few steps inside the store to see where these particular clothes might…

Sponsors

Is SaaS For You? Three Questions To Ask

Is SaaS For You? Three Questions To Ask

The idea of providing software to customers for a fee without the need for investments in IT infrastructure or staff has been around for decades. In the 1970s it was called Timesharing. Back then, companies utilized Timesharing services as their primary source of IT applications or as an extension of in-house IT applications, thereby avoiding…

Placement Opportunities - Find Out!

Established in 2009, CloudTweaks is recognized as one of the leading influencers in cloud computing, big data and internet of things (IoT) information. Our goal is to continue to build our growing information portal, by providing the best in-depth articles, interviews, event listings, whitepapers, infographics and much more.

You can help continue to support our community by social sharing, sponsoring, partnering or contributing to this great educational resource.

Contact

CloudTweaks Media
Phone: 1 (212) 763-0021

Join Our Newsletter