For those just starting out, an ERP system - or rather enterprise resource planning - is a type of software that connects core business processes across an organization.
A cloud-based ERP is no different, except it takes everything mentioned above to a whole new level. Leaving you with an even more efficient business.
Knowing the answers to when, where, how, why, and what are essential for any business to function properly. Cloud ERP manufacturing keeps business-related information online, avoiding the human error that often comes with uploading and downloading documents, as well as importing and exporting important data.
Not to mention, everything can be updated in real-time for accuracy, while your company team members can access all the information and reports from any location. Allowing everyone to constantly be in touch for a more streamlined collaborative approach.
Request More Info From an Expert
Why Are Manufacturers moving to the cloud?
Most companies make the choice to move to a cloud manufacturing ERP due to cost. On-site legacy systems require a heavy financial investment for servers, which typically need to be replaced every three to five years.
Plus all that extra cost in maintenance.
Cloud-based ERPs offer more flexibility and scalable services, allowing clients to pick exactly what they need, rather than buying a one-size-fits-all solution.
However, that’s not all.
In order to stay ahead of the competition, automated processes, remote working, quick decision making, and improved inventory operations are fundamental for increased profit margins.
A cloud ERP offers the opportunity to take all these features to the next level to create improved:
- Order fulfillment cycles
- Visibility and traceability
- Sales and profitability
- Business scalability and innovation
- Growth capacity
The Benefits of Advanced Manufacturing ERP Systems
Adaptable
Whether it’s B2B (business-to-business) or B2C (business-to-consumer), the objective of most organizations is to be profitable.
Infrastructures that are located on-site can become a complicated issue. If a business scales too quickly, an organization will over-invest in expensive equipment that leads to costly maintenance down the line as it can’t handle the scalability.
On the other hand, if you’re not scaling at the pace you foresaw, you’ll end up with crowded infrastructure.
Manufacturing ERP in the cloud adjusts your infrastructure as you go, whether you’re on the slow or fast track of growth. It cuts excessive equipment costs and scraps the challenges businesses face with growing pains.
Efficient
The ways of the past are well beyond us thanks to cloud-based ERP systems for manufacturing. Nowadays, time is of the essence. This is particularly true for finance departments.
With modern cloud software, finance departments can monitor accounts with reports and information updated on the hour. Additionally, teams can spend less time generating invoices, processing payments, and handling paperwork.
Not to mention, organizations can spend more time on ways to improve their business: customer satisfaction, employee engagement, and product development.
The daily tasks once taken on by many departments are now automated by an ERP system.
Secure
With the ever-growing cyber attacks and data breaches, superior security is crucial. A cloud-based manufacturing ERP takes security very seriously, especially when it comes to storing and retrieving classified company data.
A cloud ERP tracks activity and encrypts all data, meaning you never have to worry about getting hacked by a third party.
When implementing a cloud-based ERP, services are controlled by the vendor, who has years of experience behind them in handling all things ERP.
When it comes to updates, you’ll always be in the loop as it falls under the coordination of the vendor. Once again freeing up your schedule to focus on the important aspect of business operations.
A Modernized Manufacturing ERP Supply Chain
As the unpredictability of supply and demand continues to rage, the ability to stay in control of the supply chain has become more than essential.
In order to easily scale with the ever-changing consumer demand and business trends, a cloud ERP can fully manage your supply chain:
Demand and Planning
A cloud ERP determines the amount of inventory, materials, products, resources, and even labor required. Using historical and real-time data, users have access to automatic supply and demand forecasting.
Procurement
Where your supplies come from involves identifying the right vendors, contractors, and distributors. Certain cloud ERPs provide material requirements planning (MRP) to house data on demand, required materials, and products in one system.
Production Cycle
The manufacturing process is a long one. Without the proper systems in place, managing production can get out of hand. ERP users benefit from a production schedule that keeps requisitions, purchase orders, and materials replenishment all in one place.
Distribution
Timely delivery often coincides with satisfied customers. An effective supply chain maintains positive relationships with carriers who deliver products in a timely manner. Certain ERPs contain distribution requirements planning (DRP) that tracks shipments, displays the number of items shipped, and provides support to improve delivery speed and time.
Financial Management
At its core, an ERP is a financial management system, which makes sense as to why it is the top choice to manage finances. Its features can easily manage credit limits, and keep payments up-to-date to avoid any production delays due to missed invoices.
The manufacturing industry is complex, even more so as customer demand expands and supply globalizes. As a result, companies are met with challenges that are no match for traditional platforms. Cloud-based ERPs facilitate these problems by providing a common and accessible platform.
NetSuite ERP for Manufacturing
Industry modules, customization abilities, and in-app add-ons are all a manufacturing company needs to scale up operations and stay in full control of the supply chain.
At NetSuite, this is nothing new. A fully cloud-based ERP serving manufacturing companies across the globe, it’s time for you to get ahead of the competition, starting with better and modern manufacturing.
Contact our team of NetSuite ERP consultants to see how we can add value to your manufacturing business.
Request More Info From an Expert