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Manufacturers are Looking to the Cloud: Part 1

Manufacturers know that, in order to be successful in the rapidly changing markets of the global economy, they must make more efficient use of large amounts of data to leverage business intelligence and become more agile. They are looking to the cloud as a solution. The current explosion of cloud platforms, especially the Salesforce ecosystem, has led industry analysts to predict even more growth for cloud-based ERP solutions for manufacturing ERP.

Benefits of Cloud ERP

Cloud computing provides on-demand real-time access to data and resources, reduced costs, scalability and the ability to store large amounts of data. The flexibility of the cloud and the speed of deployment make manufacturing systems particularly well suited to cloud-based ERP solutions because cloud ERP brings core manufacturing tasks together. Cloud based solutions represent every critical function in the manufacturing process, including materials requirements planning (MRP), process manufacturing software, purchase order and inventory software, shop floor software and supply chain management software.

  • On-demand real-time access to data and resources – The cloud provides on-demand access to data and resources stored in the cloud, enabling every department at every step of the supply chain to react instantly to changing business needs.
  • Reduced costs – Cloud-based solutions can reduce IT expenditures, including infrastructure, maintenance and life cycle costs, by as much as 54 percent, especially when compared to the high costs associated with older, on-premise ERP systems.
  • Scalability – Cloud-based systems can be scaled up or down with changing project workloads, an especially critical requirement for manufacturing firms. Software and hardware requirements are also scalable in the cloud.
  • Data storage – The cloud is ideal for storing, managing and accessing large amounts of data. This ability to access “big data” is one of the driving forces behind the growth in cloud-based software.

These benefits translate into greater visibility into every function across many departments, faster innovation, improved productivity and efficiencies through integrated business processes and, more recently, mobile integration, which allows employees to access data and transform it into smarter decisions from any device anywhere.

The evolution of cloud computing is currently exploding, as companies emerge to provide solutions of all three cloud service models, including a variety of 100 percent cloud-based and hybrid cloud systems.

Stay tuned for part 2!

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