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Why Are Manufacturers Switching to Cloud ERP?

Why Are Manufacturers Switching to Cloud ERP?

Cloud ERP is amidst the hype! Isn’t it?

By the way, how can it help you evolve and strengthen core businesses functionalities?

Let us discuss it in this blog.

Cloud-based ERP is hosted on a cloud computing platform and managed by the vendors. There are different options available, backup and disaster recovery plans which ensure that end-users work without any interruptions. For small and mid-sized businesses, Cloud is the first step to success.

“With a cloud-based solution, we only need to spend for the resources we need, as we need them.”

– Senior Vice President and CFO, Northeastern Hospital

Be it a hospital, manufacturing sector, educational sector, medical or retail industry, cloud ERP smoothly manages the comprehensive business operations while saving time and human efforts.

The major benefits of cloud-based manufacturing ERP are highlighted below:

Benefits of Cloud-based Manufacturing ERP

When you choose a cloud-based implementation plan, the ERP system is distributed from the cloud server (which is maintained by the cloud provider) and accessed on web browsers by the users. Cloud ERP lowers the overall expenses, encourages quicker implementation, decreases capital expenditures and allows businesses to focus on the core functionalities.

It goes without saying that a fully integrated Enterprise Resource Planning solution connects your entire business and offers unmatched user experience to the end users. It streamlines the operations and reforms supply chain to help you maintain significant security standards that are a must for a successful manufacturing business. And when it is on the cloud, the benefits increase by manifolds. How?

  • Cloud ERP encourages usage of virtual machines, thus, your IT team can focus majorly on growth initiatives rather than day-to-day, mundane tasks.
  • Easy-to-use setup wizards of cloud ERPs ensure quick and less complicated implementations.
  • Day-to-day operations such as order management, replenishment, cash collections, etc. are automated and concerned people can access these documents – this improves visibility.
  • It allows automation in a better way.
  • Cloud is with you every day, every time. It scales up and down, with your business.

When it comes to selecting a new enterprise resource planning (ERP) system, one of the most critical aspects in your decision will be whether you choose to deploy it

Cloud-based Manufacturing ERP systems are more common today, than ever before. Nearly every ERP vendor offers some form of cloud deployment option, and some have discarded their on-premise offerings altogether.

Below image gives a glimpse of Cloud ERP vs On-premise ERP, and displays how Cloud ERP is out-weighing on-premise ERP:

Cloud ERP vs On-Premise ERP

The difference between On-Premise and On-Cloud ERP is clear – On-Premise solution is installed locally on the hardware and company’s servers. Whereas, cloud ERP is hosted remotely by the vendor and can be accessed by the end users through a web browser. This means, irrespective of the location and time, users are free to work – all they need to have is a good internet connection.

So, why Cloud-based Manufacturing ERP is taking over On-Premise Manufacturing ERP?
Let’s see how cloud is better than On-Premise software –

  1. Better affordability – no additional expense on IT infrastructure
  2. Anytime, anywhere access from any device
  3. Quick deployment speed
  4. Timely software upgrades
  5. Rigorous security and back-up procedures
  6. Seamless and automatic updates

Industry-leading manufacturers are defined by the way they interact collaboratively, deliver goods on time and make smart decisions wisely. Small and mid-sized business owners leave no stone unturned to create a new path towards innovation and success.

If you are one of those entrepreneurs, then cloud ERP can help your manufacturing business flourish by harnessing new technologies.

It’s no secret that technology evolves at a rapid pace. Businesses should have the skills to leverage these technologies to stay competitive in this modern world. IoT (Internet of Things), Blockchain, Big Data, Robotics, Cloud computing are a few trends that support and backs the companies with productivity and real-time accuracy.

Cloud is the building block that lays a foundation for these evolving technologies. According to SAP benchmarking, organizations that work on the cloud, witness a 49% increased operating margin.

Cloud-based platforms offer consistency throughout the journey and this ensures flexibility and better performance. According to SAP, discrete manufacturers use the cloud to –

Simplify processes
Businesses are more successful when they are less complicated and follow an easy way of operating tasks. With cloud ERP, your employees don’t need physical devices like hard disk drives and memory cards for their systems. Because every piece of data is saved online, they can access it from any device through a web browser. Uploading, viewing and editing the files becomes a no-brainer.

Differentiate core business processes
Mass produced goods are way too different from a set of goods which are manufactured as per customer’s specifications. This is a highly competitive world and businesses are entirely dedicated to meeting customers’ demands so as to rise high.

Modernize your business
Whether it is about financial management or inventory, supply chain or social collaboration, cloud ERP lets you manage every aspect of the business in a hassle-free manner. Cloud-based ERP solutions are robust, eliminates the IT expenses and lets you meet the security compliance needs without hassles. It encourages innovation, quick decision making and unification of data into a single entity.

There are still some organizations where employees use multiple tools and applications for different tasks. Cloud ERP eliminates this glitch and allows businesses to manage their HRM, CRM, accounts, production status, QC results, and resource optimization from a single software. No chaos of disparate spreadsheets.

Cloud ERP solution such as OptiProERP provides you with all the comprehensive business management tools that improve business insights and streamlines the entire process. With world-class security delivered by SAP Business One, OptiProERP is an intelligent system of innovation which scales quickly and offers real-time data access to end users. To learn more about its functionality, feel free to contact us.