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The importance of cloud ERP systems in manufacturing

Learn more about how Cloud ERP systems help fulfill the unique needs and challenges of the manufacturing industry.
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.

Hector Pinto
"Acumatica has been a game changer. It’s made a huge difference in how we do things, how we can access everything we need from anywhere, and allowed our salespeople to work remotely."
Hector Pinto, CEO and co-Founder
Quality Material Handling, Inc.

Manufacturing Cloud ERP Use Cases

After implementing a manufacturing cloud ERP solution, make-to-stock, make-to-order, engineer-to-order, project-centric, job shop, batch, and repetitive manufacturers can become a lean, automated business by:

  • Making better decisions with greater visibility and communication
  • Controlling engineering changes and fix bill of material (BOM) and routing errors
  • Balancing supply and demand
  • Improving product cost
  • Forecasting sales, scheduling resources, and calculating capacity requirements accurately
  • Improving quality through efficient and automated scheduling/material grouping
  • Integrating with critical third-party applications

Devil’s Peak Brewing Company (DPBC) is a manufacturer that experienced these benefits. Since 2012, DPBC has been producing an incredible variety of American, Belgian, and English-style ales. As their popularity grew, so too did their supply chain and operating system complexities. DPBC needed a comprehensive cloud ERP solution. They chose Acumatica Cloud ERP, and Managing Director Derek Szabo says, “Acumatica was able to handle the full end-to-end functionality, it was cloud-based, and it was exceptionally cost effective.”

He also says, “Full supply chain visibility will enable us to target the areas where we have issues and tackle them, to ensure we are operating efficiently and driving growth across sales, supply chain, manufacturing, and finance.”

Choosing a Cloud ERP System for Manufacturing

There’s a difference between choosing a manufacturing cloud ERP solution and choosing the right manufacturing cloud ERP solution.

Businesses in the manufacturing industry should evaluate their cloud ERP options based on the categories of productivity, functionality, technology, value, and risk. Acumatica’s complimentary Manufacturing Management System Evaluation Checklist can help.

The checklist lays out the specific traits and capabilities manufacturing software should possess, including being intuitive; having universal adaptability; support standard accounting features; help with product structure control (e.g., BOM costing, custom configurations, and more); manage production with material requirements planning (MRP) and advanced planning scheduling (APS); have integrated business intelligence; and much more.

How Acumatica Can Help

Acumatica Cloud ERP checks off all the boxes in the manufacturing management system checklist. Acumatica Manufacturing Edition allows manufacturing businesses to integrate production planning and the shop floor with their core business applications to provide real-time coordination across the entire business. Acumatica’s mobile app and scanning to capture material issues and move transactions via phones and tablets. And access approvals and monitor production orders, schedules, and material plans anywhere, anytime.

To learn more about our manufacturing management solution, which includes Bills of Material Routing, Production Management, MRP, APS, Manufacturing Data Collection (MDC), Engineering Change Control, Estimating, and Product Configurator along with Inventory, Order, and Purchase Order Management, WMS, Service Management, and more, contact us today.

See what’s possible when you have a future-proof ERP platform that truly puts customers first.

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