Manufacturers are tapping into the power of ERP and more are likely to do so in the future. About 25% of small manufacturers use cloud-based software, while 20% are looking to expand into cloud software.
Cloud technology levels the playing field among the big and the small and makes it possible for all size manufacturers to access data that can be used to drive business decisions. It’s changing the face of manufacturing for the better. Companies today can access powerful accounting, finance, inventory management and many other types of software at competitive rates thanks to cloud access. It’s really changing the face of manufacturing forever and for the better.
Cloud-Based ERP Lowers Production Costs
Cloud-based ERP provides manufacturers with real-time data on inventory, production, orders, shipments, and much more. Because accurate data is available with the click of a mouse, companies can now see at a glance everything that’s going on within their walls. They can manage inventory better, shop for lower-priced raw materials, and much more. All of this adds up to lower production costs.
Lower production costs give manufacturers some leverage in how they price their goods. They can use the added profit to shore up overall profits or lower prices for a competitive advantage.
When you know what your inventory status is and you understand the costs of maintaining your inventory, you can make adjustments that improve inventory management. The results lead to lower costs with improved inventory accuracy and the potential for sustained growth.
Money Spent on IT Now Available for Other Projects
Companies with older systems tend to keep them running at all costs rather than spend on new ones. Patching, repairing, and updating systems may seem like it saves money on new technology but it just wastes funds to maintain and repair systems. Running outmoded systems takes more time and effort than buying and installing new ones.
You are probably spending more than you think on IT services. It’s not just the cost of equipment, patches, and upgrades. It’s also the cost of salaries and overhead for IT staff needed to maintain legacy systems. Cloud-based ERP releases IT staff from tedious tasks so they can go on to more complex work.
Because cloud systems are updated automatically by the vendor, you don’t need to worry about loading updates and managing patches. The vendor takes care of all necessary updates. You can then move your technology resources and IT budget into other projects. Upgrading to cloud-based ERP can save your company considerable money while fueling other IT projects for growth.
Security is another area in which you’ll save money if you switch to cloud ERP. If you manage your own seat-based software now, you’re providing all of your own internet security. This also includes funds set aside to clean up security breaches. With cloud ERP, the cloud host vendor takes care of all the security needs. You don’t have to worry about updating security or installing new firewalls. The vendor takes care of it all.
Maintaining systems on site and ensuring they are working at peak efficiency does take up considerable IT resources. Many cloud ERP vendors provide assurances of up time in their contracts, with some guaranteeing up to 99% up time. That’s probably better than you’re averaging now.
Cloud ERP can help you save information technology costs as well as divert staff to more productive projects.
Cloud ERP for Lean Manufacturing
Companies relying on spreadsheets to manage abundant manufacturing data find they need to devote several employees to the task of inputting data, creating reports, and ensuring accuracy. It can take a lot of effort to maintain poor systems. It’s time and labor-intensive work. Can you afford it?
By adding cloud ERP, you shift data entry tasks from manual to automatic. This saves considerable time and effort. Once you can see the data, you can scale and shift production into more profitable ventures, and you can do so more quickly.
Employees using cloud ERP can view all customer orders at one time and batch production accordingly. This enhancement incorporates lean manufacturing processes and enables more efficient use of materials, equipment, and staff.
Studies have shown that overtime costs can be cut by as much as 60% after cloud ERP adoption because of lean manufacturing processes. With better use of time, equipment, and personnel, companies no longer needed to add shifts to accommodate extra orders. This increases profits by lowering costs and increasing production time.
Acumatica Cloud ERP from Emerald TC
Acumatica cloud ERP offers a powerful, cost effective method of reducing costs and improving lean manufacturing strategies. It includes software for accounting, finance, project budgeting, and much more. Data is synchronized among multiple locations on the same software so that manufacturing work in Atlanta can be viewed in real-time in Tampa. Acumatica ERP offers so much in one package for manufacturers.
Emerald TC specializes in helping mid-market, multi-location companies increase efficiency, productivity, and profits. Let’s discuss how we can help you. Contact us or call 678-456-6919 today.