The importance of cloud ERP systems in manufacturing

Managing Manufacturing with Cloud ERP Systems

Manufacturing is taking raw parts and materials and putting them together with machinery, human labor, and other tools to create a polished finished product. Though a simple definition, it highlights how complex the manufacturing process is. Recent events have raised that complexity exponentially.

For example, global supply chain issues caused by the pandemic, storms, trade wars, and more, compounded by the fact that the manufacturing industry has moved towards offshoring (transferring operations to and buying materials from overseas countries) in the last few decades, has resulted in lack of components (e.g., chip, lumber, metal, plastics, and more) and major distribution issues.

Dealing with the fallout of these unexpected challenges has taken a toll. Bloomberg’s take: “Manufacturers reeling from shortages of key components and higher raw material and energy costs are being forced into bidding wars to get space on vessels, pushing freight rates to records and prompting some exporters to raise prices or simply cancel shipments altogether.”

Unprecedented circumstances with high price tags damage manufacturing small and medium businesses, possibly to the point of extinction—unless they’re relying on a manufacturing cloud ERP solution.

How Cloud ERP Systems Benefit Manufacturers

Cloud ERP systems are comprehensive business management solutions that help regulate, streamline, and automate their operations as well as collect and analyze business data in real-time for strategic business decisions. Working from a centralized database in which every department, from accounting, finance, and CRM to sales, marketing, and inventory, is integrated, the business has a 360-degree-view of the entire organization. Mobile technology means the solution and its updated, accurate information is accessible 24/7 from the office, the shop floor, the field, or on the road, which enhances collaboration between every employee.

A manufacturing cloud ERP solution provides manufacturers the tools to manage and automate their production planning, scheduling, and inventorying requirements. Its industry-specific nature addresses the complex—and distinctive—processes and workflows found in manufacturing, providing better organization, improved resource management, and increased forecasting accuracy. To top it off, cloud ERP systems can be customized to fit each manufacturing company’s special needs.

Benefits of ERP systems in the manufacturing industry

Cloud ERP solutions provide manufacturers with adaptable solutions and technologies to improve efficiency, decrease costs, generate leads, and increase revenue to grow and transform their businesses effectively in the new digital economy. Here are some ERP strategies that Manufacturing Companies use in order to grow:

1. Drive Growth through Manufacturing Efficiency – Manufacturing ERP Software provides integrated applications designed to eliminate inefficiency through automation and actionable business insights. Artificial Intelligence, Machine Learning, Material Requirements Planning, Inventory Order Allocations, Barcode and RFID Automation and Business Intelligence and Reporting are just some features that ERP Solutions can provide
2. Streamline Processes with Connected Supply Chains – while many legacy ERP Systems rely on email, fax, phone, and other disconnected systems to collect essential information for decisions or product design, purchases or production, Cloud ERP software provides a collaboration platform connecting businesses with customers, dealers, and partners to improve efficiency in all areas.
3. Generate more Leads – it is often hard for manufacturers to improve sales because products are complex. Some manufacturers rely heavily on estimates, with only a small percentage converting to quotes or orders. Legacy systems and disconnected commerce applications disrupt processes delaying information required for effective marketing and sales. Cloud ERP Manufacturing Solutions provide tools that manufacturers need in order to sell more products and services. Here are some of the tools: Manufacturing Estimates, Marketing Automation, Matrix Items, Product Configurators.
4. Provide Exceptional Service – manufacturing has changed dramatically over the past decade. Manufacturers must do more than make great products. Customers choose suppliers based on the services they provide around those products. Consequently, today’s leading manufacturers offer installation, repair, maintenance, and other services to complement core product offerings. With embedded CRM and field service applications, Manufacturing ERP Software provides the ideal platform for delivering world-class services.
5. Optimize Inventory – features like Inventory Replenishment, Flexible Pricing and Valuation, Lo and Serial Tracking, Material Planning, Warehouse Management or Shop Floor Automation can help optimize inventory levels, automate processes, and implement just-in-time strategies to save time and increase inventory turns.
6. Manage Compliance – compliance is a huge issue for your manufacturing business. Compliance mandates from customers, vendors, and federal agencies cost time and money. Failure to manage compliance can severely restrict the ability to attract and retain customers. ERP Systems can provide dozens of features to help manage requirements to remain in compliance. Database level security, audit files, security roles, wikis, and document management support quality and compliance initiatives.
7. Gain Actionable Insights – ERP systems are notorious for capturing data. There is a lot of it. It is difficult, and sometimes impossible, to make sense of it all. Advanced  Manufacturing ERP Systems provide direct integration with advanced business intelligence applications to provide actionable insights.