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For manufacturers, investing in a cloud enterprise resource planning (ERP) solution isn’t just about keeping up with the competition—it’s necessary to drive sustainable growth.
Challenges like supply chain disruptions, changing customer demands, and economic uncertainty require manufacturers to be more agile and resilient than ever. Collaboration and efficiency are must-haves, not nice-to-haves.
As small and midsized manufacturers navigate today’s challenges, they must:
A cloud ERP solution is a powerful tool to help manufacturers achieve these objectives.
Cloud ERP for manufacturers is a single solution with everything manufacturers need to run their businesses, including finance, customer relationship management (CRM), sales, purchasing, inventory, production, material requirements planning (MRP), supply chain, service, and reporting.
With one integrated, cloud-based solution, manufacturers eliminate data silos, save time and money, and use real-time information to make better decisions.
Cloud ERP and its accessibility for small and midsized businesses are significant advantages for manufacturers. Cloud-based solutions significantly reduce the infrastructure and software costs associated with traditional manufacturing software and relieve IT staff from the burden of ongoing system management and upgrades. Nearly everything is managed by the cloud ERP vendor, allowing business owners to choose the solution that suits their needs—with no need to add specialty staff.
As the industry evolves and new challenges arise, a modern cloud ERP solution’s flexibility, customizability, and scalability become more vital.
These are the eight most valuable cloud ERP capabilities for small and midsized manufacturers:
Bills of materials (BOMs) management. A manufacturer with well-managed BOMs can align every department around a singular set of BOM data, so everyone knows inventory levels, production lead times, product cost, and other critical information. Employees can quote jobs accurately, ensure delivery dates, and seize new and evolving opportunities missed by competitors who don’t manage their BOMs efficiently.
Automation. Cloud ERP solutions automate and accelerate processes. For example, with cloud ERP, the system that contains your inventory data can automatically create BOMs. This eliminates the data silos made by disconnected systems and prevents inaccurate materials requirements, miscommunications, production bottlenecks, and product shortages.
Digital transformation. Digital transformation is adopting new—or modifying existing—technology to make your business run better. No matter their scope, digital transformation initiatives positively affect a business’s bottom line. And with cloud ERP, manufacturers can use their new or modified processes to rapidly pivot to meet new market requirements.
Inventory management. Cloud ERP solutions automate the processes that control your inventory receipt, reordering, and rotation. Accurate, real-time inventory and past demand reports empower you to make solid decisions about future purchasing.
Cash flow management. Cloud ERP solutions help manufacturers get paid more and keep more cash available to fund ongoing operations. Because customer history and customer-related data are stored digitally, users can quickly gather critical information that supports their claims of customer/order viability. The result is more cash faster.
Traceability. Discrete and process manufacturers (e.g., food and beverage, life sciences, or auto parts makers) need traceability for product and consumer safety. With cloud ERP, any manufacturer can see forward and backward in the supply chain and identify where faulty ingredients/components originated, where they were incorporated into finished products/batches, and which customers received them.
Differentiation from cheap-labor competition. Manufacturers reinvent their business models with cloud ERP. Rather than competing solely on the cost per unit, they become higher-value-add businesses. They add new channels, expand sales territories, open additional warehouses, tap into CRM, and offer more services to customers.
Direct-to-consumer sales. Many manufacturers want to engage with eCommerce consumers directly, and modern manufacturing cloud ERP software integrates with popular eCommerce platforms like Shopify, Magento, and WooCommerce. This allows manufacturers to make additional sales or attract new customers through a company-run shop—then manage the entire customer experience.
Cloud ERP for manufacturing delivers enterprise-level sophistication and efficiency to small and midsized manufacturing businesses. Since an ERP vendor manages the software, business owners can focus on innovating and growing the business.
There’s too much market volatility to operate any other way, and small and midsized manufacturers that haven’t adopted cloud ERP can’t adjust to fast-changing market conditions and customer requirements at the same level as competitors.
The best cloud ERP solution for your manufacturing business depends on the type of manufacturing you perform.
Vision33’s eBook, Simplifying ERP for Small and Midsized Manufacturers, helps you match your manufacturing needs with the best technology.
Whether your business is discrete, process, or project manufacturing, there’s an SAP cloud ERP solution that’s everything you need, nothing you don’t, and priced right for your business.
Read the eBook to learn the specific cloud ERP needs for each manufacturing type and why all ERPs are chasing SAP.
As a technology pioneer, SAP has designed some of the most robust cloud ERP solutions available. The leaders in cloud ERP for manufacturers are SAP S/4HANA Cloud Public Edition, SAP Business One, and SAP Business ByDesign.
See what each solution offers, how they stack up against the competition, and how Vision33 can help you simplify manufacturing with the right SAP cloud ERP solution.
