Manufacturing companies have unique and complex processes and workflows that require functionalities that a standard ERP application can’t provide. These types of companies require an ERP application that is custom designed with industry-specific workflows, forms and data formats in addition to user-friendly tools for customization. Manufacturing companies today are not looking specifically for a SaaS-based solution; they are choosing Cloud ERP products after comparing it with other established products.
Cloud ERP offers businesses a tremendous advantage for specific applications such as service levels, customization, and process optimization. Key factors such as operating costs, dogmatic compliance, and dynamic market changes are the reasons why a manufacturer would consider moving to Cloud.
Companies today are adopting Cloud-based ERP platforms and products, which integrates a large mix of useful add-on applications, widgets, templates, workflow tools and integrations to extend the core functionality. However, this growth has been slow for a range of reasons. When it is time to replace legacy systems, manufacturing companies are concerned about a number of core issues.
Cloud-based ERP has the usual cloud-related concerns around security and availability
, but even more so for considerations specific to each manufacturer. Their highly made to order workflows, business rules and data structures particularly those with multiple sites require a point of customization not yet found in most multi-tenant applications.
Cloud ERP compared to traditional ERP software offers an array of benefits and enables manufacturers to improve efficiencies, reduce costs, and provide visibility to enable managers to construct informed decisions. The most attractive benefit of cloud ERP is the price the low capital investment requirement of cloud ERP allows these manufacturers access to cloud ERP software that they couldn’t afford to install in-house due to tight budgets. According to a research report, about 22% of business software installed in a mechanized company today is SaaS, compared to 17% for other industries.
The Cloud ERP way out works perfectly for new manufacturing companies, which are starting up, as they are predisposed to move into the cloud because they don’t have the legacy of old systems.