To increase productivity, increase efficiency and become more profitable, manufacturers are using integrated management software packages (ERP or Enterprise Resource Planning) to manage and automate various business operations — including finance, accounting, human resources, production management, supply chain management, inventory management and customer relationship management.


Historically, ERP systems were implemented as on-premises software systems, which meant that manufacturing companies had to invest in expensive infrastructure and hardware to run the software on-premises. But in recent years, there has been a growing trend towards cloud-based ERP systems.


For what ?


The many benefits of a cloud-based ERP system help manufacturers stay competitive and succeed in today’s fast-paced environment.


What is a cloud-based ERP system?

Cloud-based ERP systems are software systems that provide access to an integrated suite of applications on the web or “the cloud”.


Unlike on-premises systems, cloud-based ERP systems are hosted on remote servers and can be accessed over the internet from anywhere as long as there is an internet connection.


Cloud-based ERP systems offer manufacturers many advantages over on-premise ERP systems, including lower upfront costs, greater flexibility, easy scalability, and faster implementation. In general, cloud ERP systems also offer automatic updates and maintenance, which makes life easier for manufacturers who do not have an IT department — or a very small department — because it allows them to ensure they always use the most recent version of the software.


Why are more and more manufacturers transitioning to cloud-based ERP systems?

There are many benefits of moving from an on-premises ERP system to a cloud-based system:


1, Accessibility

A cloud-based ERP system can be accessed from anywhere, from any device — laptop, smartphone, tablet — that has an internet connection. Cloud-based ERP systems allow employees in different departments or in different locations to access real-time data to collaborate more effectively, increasing efficiency and productivity. This is especially important for manufacturing companies that have many locations, for those working remotely, or for field service divisions. Indeed, everyone can quickly access the exact information they need to do their job.


2, Extensibility

As a manufacturing company grows, its ERP system needs may change. A cloud-based ERP system can easily be scaled up or down to meet changing business needs.


To expand on-premises ERP systems, hardware and infrastructure must be upgraded or redesigned to meet growing demands. But cloud-based ERP systems scale easily, and resource utilization can easily be scaled up or down as needed, allowing the ERP system to grow with the business. A cloud-based ERP system easily adapts to handle an increase in hiring or the addition of new products and business units. For manufacturers who face seasonal fluctuations or rapid growth, this is particularly important.


3, Better real-time data

Real-time data is one of the biggest benefits of an ERP system — and a cloud-based ERP system can deliver real-time data even more efficiently than a traditional ERP system. With a cloud-based ERP system, the data used to generate reports and projections is less likely to contain errors. Indeed, the data is always up to date, because the application and the information are hosted on a single and centralized cloud computing location.


Cloud-based ERP systems give businesses access to accurate and timely data, allowing them to make more informed decisions that can help them optimize everything from inventory control to production management to management. of the supply chain.


4, Improved collaboration

Cloud-based ERP systems make it easier for employees to collaborate because they access the same data and work in the same documents from anywhere. The cloud allows employees to enter data, compile it and collaborate from any location, which means that different departments or different business units can work together from multiple locations because everyone has access to a single instance of the software.


Key decision makers can also stay connected when they travel, when they’re offsite, or when working outside of business hours, making collaboration easier and projects moving forward.


5, Lower initial costs

A cloud-based ERP system eliminates the need for expensive infrastructure and hardware on-site, making it more affordable for small manufacturing businesses. Additionally, the subscription-based pricing model is predictable, which can help manufacturers better manage their budget.


6, Faster implementation

Cloud-based ERP systems can be implemented much faster than on-premise systems because you don’t need to put any hardware or infrastructure in place. Configuring on-premises ERP systems to meet specific business needs is more expensive, time-consuming and requires more IT resources than a cloud-based ERP system because everything must be done on-premises.


In contrast, with a cloud-based system, the ERP provider activates the hardware and software. Therefore, there are fewer downtimes when converting to the new system. Manufacturers can get their new system up and running faster, making them ready to meet growing demands or a changing market.


7, Automatic updates and maintenance

With a cloud-based ERP system, manufacturers don’t need to worry about installing updates and doing maintenance themselves. This is taken care of by the ERP system vendor, allowing the manufacturer’s employees to stay focused on more important tasks.


8, Improved Security

Some manufacturers are still reluctant to use cloud computing because of their sensitive data, including financial information. But the security of a cloud-based system is better than that of an on-premises system.


Manufacturers no longer need their own specialized resources to protect the system and their data on-site; on the contrary, cloud-based ERP systems are hosted by vendors who can devote more resources to security than individual manufacturers. With strict security measures in place, cloud ERP systems can ensure that manufacturing companies better protect their data and avoid security breaches.


9, Integration with other systems

Cloud-based ERP systems can easily integrate with other cloud-based systems, including CRMs, distributor or e-commerce platforms, to simplify business operations. Since a vendor typically takes care of the integrations, customizing a cloud-based ERP system to meet a manufacturer’s unique needs is easier and less expensive for the manufacturer than an on-premises system.


10, A greener choice

Finally, cloud-based ERP systems can help manufacturers reduce their environmental footprint because they don’t need to use as much power or have as much physical space as on-premises systems.


How do you know if your business is ready for a cloud-based ERP system?

As a manufacturing company grows, its operations become more complex and may require the involvement of multiple departments, multiple teams, and multiple locations. If your business finds it difficult to manage these issues with your existing on-premises ERP system, a cloud-based ERP system can provide you with greater flexibility and scalability to support your growing operations and business needs.


A cloud-based ERP system provides many benefits to help you better manage your operations, stay competitive, and thrive in today’s fast-paced environment.

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