What Can ERP Software Do For Manufacturers?

Posted in Operations Improvement on March 20, 2013

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Do manufacturers need to choose different ERP software that’s tailored to their industry?

Of course they do. How else would they handle manufacturing concerns without vendors that have developed solutions specifically for manufacturing?

A post on the Rickscloud blog makes the case for cloud-based manufacturing ERP software.

“An ERP system integrates internal and external management information across the entire company, assimilating accounting, manufacturing processes, sales, and customer relationship management,” the post on Rick Blaisdell’s blog continues. “ERP systems facilitate the flow of information between all business functions inside and outside the organization.”

There’s no doubt that the cloud definitely is a contender today. A Gartner forecast predicts the SaaS-delivered ERP market “will grow at a 14.7 percent compounded annual growth rate until 2015.”

Several ERP providers have made significant investments in the manufacturing industry, including NetSuite. That’s why manufacturers must carefully consider their cloud ERP options and consider vendors who can address their specific needs.

It’s important to look at how integrated the system is when selecting a cloud solution. Manufacturers must have visibility throughout the entire business. This is offered in several of the ERP offerings mentioned, although the leader in this area clearly is NetSuite.

Here are the top four reasons that a cloud ERP manufacturing solution should be the choice for any company looking to accelerate their business.

  1. Increased ROI: This is the key factor that businesses must focus on. Cloud ERP solutions have a higher ROI because they can be integrated more quickly.
  2. Small upfront investment: On-site ERP software calls for purchasing and housing servers, maintaining servers, and then deploying, configuring and maintaining the ERP software. On the other hand, a cloud ERP solution requires a minimal initial investment, because implementing and maintaining the solution is the responsibility of the provider.
  3. Minimal IT staff: Enterprises that use cloud-based ERP solutions don’t need more IT staff. Application support is done by the host company, eliminating the “costs and complexities” of installing, integrating and supporting the ERP solution.
  4. Increased scalability: Cloud ERP solutions are easily scalable, benefiting businesses with seasonal activities, fast growth or changing functions.

Source: Rickscloud, February 2013

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