The importance of cloud ERP systems in manufacturing

Managing Manufacturing with Cloud ERP Systems

Manufacturing is taking raw parts and materials and putting them together with machinery, human labor, and other tools to create a polished finished product. Though a simple definition, it highlights how complex the manufacturing process is. Recent events have raised that complexity exponentially.

For example, global supply chain issues caused by the pandemic, storms, trade wars, and more, compounded by the fact that the manufacturing industry has moved towards offshoring (transferring operations to and buying materials from overseas countries) in the last few decades, has resulted in lack of components (e.g., chip, lumber, metal, plastics, and more) and major distribution issues.

Dealing with the fallout of these unexpected challenges has taken a toll. Bloomberg’s take: “Manufacturers reeling from shortages of key components and higher raw material and energy costs are being forced into bidding wars to get space on vessels, pushing freight rates to records and prompting some exporters to raise prices or simply cancel shipments altogether.”

Unprecedented circumstances with high price tags damage manufacturing small and medium businesses, possibly to the point of extinction—unless they’re relying on a manufacturing cloud ERP solution.

How Cloud ERP Systems Benefit Manufacturers

Cloud ERP systems are comprehensive business management solutions that help regulate, streamline, and automate their operations as well as collect and analyze business data in real-time for strategic business decisions. Working from a centralized database in which every department, from accounting, finance, and CRM to sales, marketing, and inventory, is integrated, the business has a 360-degree-view of the entire organization. Mobile technology means the solution and its updated, accurate information is accessible 24/7 from the office, the shop floor, the field, or on the road, which enhances collaboration between every employee.

A manufacturing cloud ERP solution provides manufacturers the tools to manage and automate their production planning, scheduling, and inventorying requirements. Its industry-specific nature addresses the complex—and distinctive—processes and workflows found in manufacturing, providing better organization, improved resource management, and increased forecasting accuracy. To top it off, cloud ERP systems can be customized to fit each manufacturing company’s special needs.