The Cloud has become so entrenched in many businesses that it’s hard to find one that has not implemented at least one Cloud system in their organization today. One of these systems is Cloud-based Enterprise Resource Planning (ERP), which is becoming popular with manufacturing companies.
What is Cloud-Based ERP?
Simply put, Cloud-based ERP is a type of business management software. It is usually a set of combined applications that allow a company to gather, store, manage and present data from all aspects of their business, including manufacturing operations.
Tom Powledge, Vice President of Product Delivery, SMB, .Cloud, Symantec states on Cio.com that Cloud computing affects all aspects of your organization, even your bottom line. Cloud-based ERP systems for manufacturing are directly relevant to the CFO’s role in the organization. For this reason, it is important that CFO’s be involved from the start when deciding how Cloud-based ERP software will be beneficial to the organization. Here are some important factors that CFO’s should consider when selecting and deploying ERP software solutions in his/her manufacturing facility.
1. Hardware or Software Upgrade
When the cost of upgrading your on-premises application approaches the cost of replacing the system, you may want to consider a Cloud-based ERP solution. The longer your company uses an old version of an on-premises application, the more likely it is that support will be harder and harder to get.
2. Consider the Advantages of ERP Software for Manufacturing
Reduced Initial Investment. This software does not require a large initial investment. Implementing, maintaining and updating Cloud ERP is the responsibility of the software provider. Additionally, your company will not have to hire ongoing technical staff to support the application, thereby reducing costs.
The Advantage of Speed and Mobility. Implementation takes considerably less time with the Cloud than with traditional on-premises solutions. This flexibility and speed of Cloud-based ERP is ideal for small and large manufacturers. They will be able to take advantage of increased scalability and cost reductions. Mobile users will also be able to access corporate resources, resulting in quicker response to customer service issues.
Increase in Productivity. ERP for manufacturing improves productivity of the workforce by reducing previously manually tracked items with an automated end to end solution – giving visibility of all manufacturing activity from quote to cash.
3. What Information are you Willing to Put on the Cloud?
Be sure to consider balancing risk with accessibility. Although there is increased efficiency with Cloud-based ERP solutions, access from more places increases risk.
4. Evaluation of Cloud Providers
What security measures do they have in place? Are they in compliance with all government regulations? Are they able to grow with your business and not simply cater to your current needs?
5. Detailed Service Level Agreements (SLA)
When creating this agreement, be sure to include specific requirements regarding data recovery and financial penalties for reneging on the SLA. Your manufacturing company can lose large amounts of time and money if the ERP system is offline.
Due to the impact of Cloud-based ERP solutions on the company as a whole, it is important that CFO’s are completely involved in the implementation process.
KeyedIn Manufacturing’s production control software is built exclusively for manufacturing. Contact us today to find out how your organization can benefit from our flexible Cloud-based ERP software specifically designs for manufacturers.
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