Everybody’s getting lean. Manufacturers have known for some time that in order to compete locally or globally, be profitable and grown their companies, they need to adapt lean manufacturing techniques to reduce waste, increase efficiency, sustain continuous process improvement, ensure product quality and support just-in-time manufacturing. Lately these firms have been embracing cloud ERP in their efforts to get lean.
Why are manufacturers choosing cloud-based ERP solutions? First, many of these firms have discovered that legacy ERP systems are simply too expensive, difficult to use and don’t grow with their company. Sure, some legacy, on-premise ERP vendors are promising some cloud-based functionality, but often these are bolted-on afterthoughts in an effort to get some of the cloud ERP market share. A true cloud-based ERP solution is one that is designed and implemented in the cloud and takes advantage of storage, real-time access and mobility benefits that the cloud provides.
Cloud ERP’s ability to provide real-time access to critical data allows firms to track every step and component in their supply chain. For example, firms can use cloud ERP to track production, receiving, yields and efficiency, and their production workers can then access this data in real time on their smartphones.
Manufacturers can integrate their website with their cloud ERP software to provide a complete workflow. Cloud ERP lets firms create and assign SKUs to parts and products, sell those materials and products on their customer-facing website, and then integrate those orders with production. Orders are sent directly to the shop floor to be filled immediately.
Another reason manufacturers are moving to cloud ERP is the ability to add functionality and integrate other software as the company’s requirements change over time. Cloud ERP solutions on popular platforms like Salesforce can easily integrate out of the box with other partner solutions tailored for a firm’s specific needs. APIs provide integration with new technologies that for example, support production planning without the relying on indirect labor.
Watch the video below to see how one firm chose their cloud ERP solution.