The world we live in today is not the world we lived in just a few short years ago. The COVID-19 pandemic impacted the global supply chain, the way we work, labor availability, the economy, and more, disrupting how businesses operate and forcing them to adapt to an unforeseen reality.
As a manufacturer, you’re immersed in this new reality, which has brought with it increasing inflation and recession concerns, decreasing customer satisfaction, and heightened demand for quality products at a lower cost. Unfortunately, overcoming these major hurdles may be impossible if you’re relying on disjointed, legacy business management systems.
But there’s one thing that can help make the impossible possible: a modern, connected cloud-based ERP solution.
Today, we’ll look at why manufacturers need ERP now more than ever.
Using Manufacturing Cloud ERP to Navigate a Different World
Before jumping into why manufacturers need ERP, let’s define what manufacturing cloud ERP is and what an ERP software system does.
ERP stands for “enterprise resource planning.” A cloud ERP system is software that is hosted in the cloud and gives businesses—regardless of size—the features and functionalities they need to effectively manage their daily operations. A cloud ERP solution acts as a “one-stop shop,” integrating every aspect of a business, from finances, sales, and customer relationship management (CRM) to manufacturing, distribution, inventory, supply chain management, and more. Using web-enabled devices (smartphones, tablets, etc.), team members can access the real-time, accurate data stored in their comprehensive business management solution whenever, from wherever.
Cloud ERP software gives businesses the capabilities needed to operate successfully in today’s digital economy. Data is a vital component of the new marketplace, and, for manufacturers, that means you need to be able to quickly access accurate order statuses, fulfillment times, delivery dates, customer information, buyer and supplier files, and more.
A manufacturing cloud ERP solution—which should natively include or seamlessly integrate with artificial intelligence (AI) tools—enables you to gather, update, and analyze mass quantities of data within a single database. This increased visibility into operations and performance helps you make data-driven forecasts and identify risks before they become major problems.
Increased visibility provides a full view of your workflows, and many manufacturers are also moving to manufacturing cloud ERP solutions to automate workflows. Manual processes (e.g., using spreadsheets to track inventory or sending individual emails to communicate critical information) cannot keep up with modern manufacturing demands, and they often lead to human error and frustrating delays.
Sidestepping errors and delays by automating workflows with cloud ERP is a boon to businesses and their employees. Today’s high rates of employee turnover show that employee engagement is declining. Connecting with your employees is critical, but aging and ineffective business management systems can stymie your engagement efforts—especially when you’re attempting to engage remote employees, with whom you can only connect via your software systems.
Introducing cloud ERP software can boost employee morale and motivation by cutting down the time they spend editing spreadsheets, inputting data, or trying to collaborate with their fellow employees via disparate tools and platforms. This reallocation of time means they’ll be able to devote more effort to creative problem solving and growth-enhancing innovations.
The Benefits and ROI of Cloud ERP for Manufacturers
The reasons why manufacturers need ERP strategies are evident, but there are further benefits for those who implement industry-specific manufacturing cloud ERP solutions.
- Lower Operating Costs: Cloud ERP solutions boast lower upfront costs than on-premises solutions. Instead of spending thousands of dollars to buy hardware and software, maintain a physical location to store the hardware, and employ a skilled—and expensive—IT team to manage system upgrades, updates, and security, you’ll pay for the ERP vendor to fully maintain your cloud ERP software in remote data centers. With these costs off their backs, businesses that have implemented manufacturing cloud ERP systems have shown increasing efficiency over time, providing a considerable (and steadily growing) return on investment.
- Improved Scalability: Cloud-based ERP software gives you the power to scale your business easily and affordably. Cloud computing means that, when new users are added to the system, no new infrastructural purchases are necessary. You can react to demand and opportunities and scale your business up or down with an agility on-premises software cannot give.
- AI-Influenced Predictive Maintenance: Maintaining your factory equipment requires constant monitoring, especially when you’re manufacturing highly sought-after products that must get to customers on time. With a cloud ERP solution and AI, you can use intelligent sensors to produce data that will predict maintenance needs, offer scheduling suggestions, and reduce disruptions.
- Improved IT and Data Security: The ERP vendor—and the platform upon which your solution is hosted—provide enterprise-level security measures. They offer prevention and detection services against physical and environmental threats, which relieves you and your IT staff of this fundamental (but time-consuming and costly) task.
How ASWI Can Help Leveraging Acumatica Cloud ERP
Acumatica is an adaptable business management solution designed to meet the needs of growing organizations. It’s based on a secure platform, offers growth-friendly licensing, is easy to use, and seamlessly connects with third-party applications.
With multiple industry editions, Acumatica serves businesses across the board, and manufacturers like yourself can rest assured that Acumatica’s Manufacturing Management software delivers all the capabilities modern manufacturers need: production management, estimating, engineering, material planning, scheduling, product configuration (for both discrete and batch process production), and much more. For instance, take SpaceManager Closets.
SpaceManager Closets, a manufacturer of home organizational systems, was relying on QuickBooks Online and a separate CRM application to manage its operations. Owner Francis Nwabudike knew he needed to replace the multiple systems with a single solution, and, after searching for user-friendly, nimble, and scalable cloud ERP software, he chose Acumatica.
“When I discovered Acumatica, I was quite surprised that anything like that existed,” Nwabudike says.
Now, SpaceManager Closets is able to grow without penalties, resolve inventory challenges, make smarter, more strategic decisions, and much more. Says Nwabudike, “It’s literally the lifeblood of the system at this point. There’s nothing we do that doesn’t include Acumatica.”
Nwabudike understood why manufacturers need ERP, and, as an Acumatica partner, AWSi is pleased we could help SpaceManager Closets implement an award-winning solution that has helped the business grow.
If you’re ready to put Acumatica and manufacturing cloud ERP software to work for you, contact our experts today.