Cloud ERP Software Helps You Cut Costs

Cloud ERP software can help companies of all sizes cut costs. In manufacturing, where every penny counts and even a slight drop in costs can boost profits, cloud ERP software can really make a big difference.

Years ago, enterprise resource planning or ERP systems were only available to companies willing to invest considerable time and money into establishing the infrastructure needed to support them. Companies had to purchase large mainframes and other hardware to run ERP systems in-house as well as hire IT support people to manage them. It was a costly endeavor and one that often required additional costs to maintain and upgrade as time went on.

Cloud and Manufacturing 

Cloud-based systems are catching on quickly throughout the manufacturing industry. Although not everyone uses a cloud-based ERP, about 25% of small manufacturers do, while an additional 20% are looking to expand into cloud software. If you are an early adopter or exploring cloud now, you’re in good company but still far enough ahead of the curve to maintain a competitive advantage. 

Lower Production Costs with Cloud ERP

Manufacturing prices are driven by both production and labor costs. Labor costs may be difficult to adjust, but production costs can be lowered through the smart use of data. Cloud ERP helps you harness and use the data available to your business. 

ERP systems combine data from different areas of the company into one system and set of reports; you can see at a glance the production activities, inventory status changes, and more that can impact your business.

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.

Frees Up IT Funds

For those companies who are currently managing ERP systems in-house, consider how much could be released for other projects if you no longer have to upgrade hardware and maintain expensive custom ERP systems in-house.

With cloud-based ERP, you can use those funds for other projects. Cloud ERP is updated automatically by the software vendor, so you do not need to worry about loading updates and managing patches. The vendor takes care of all that.

Cloud ERP vendors provide tight security to safeguard both their own reputations and that of their clients and implement the latest security methods to safeguard against code injections, viruses, ransomware, and other problems and nuisances.

Lastly, 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 Software: Make the Switch

Making the switch from your existing systems to cloud-based ERP may be easier than you think. Speak with a consultant at Emerald TC today to learn more.

We can advise you on the best software for your company’s needs and offer a range of ERP products to choose from including Sage 100 ERP, Sage 500, Acumatica, and more. Each offers unique benefits that suit many industries.

Whether your company is big or small, mature or young, it’s time to harness the power of the cloud for your business. Contact Emerald TC today for more information. 678-456-6919.

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