5 Reasons Manufacturers and Distributors Should Consider a Cloud ERP Solution
In today's rapidly changing business environment, manufacturers and distributors face increasing pressure to optimize business processes, reduce costs and respond quickly to market changes. As competition increases and customer demands rise, companies need to innovate to streamline workflows and boost efficiency. More and more, they're turning to cloud-based Enterprise Resource Planning software (ERP) to address these challenges.
Today’s IT departments increasingly leverage the cloud to deliver applications and services throughout the organization, as well as to customers and partners. In fact, Gartner reported that 40% of organizations in North America plan to spend the majority of new or additional funding on cloud technologies.
Modern, forward-looking ERP vendors offer a cloud version of their products. In the UK, 78% of CIOs who responded to a 2019 survey by Accenture stated that the cloud is critical to their overall IT strategy – and that 50% already are running a hybrid cloud ERP platform.
Businesses using cloud ERP software to manage core processes see significant advantages over using traditional on-premises ERP systems. From inventory management to accounting processes, production project management and customer relationship management, cloud ERP systems provide centralized data and real-time insights. This blog explores 5 top reasons manufacturers and distributors should consider cloud based ERP systems.
Where does that leave you? Here are five reasons to consider a move to cloud ERP:
1. Real-Time Data Analytics
Business moves quickly, and decision-makers in your organization need the most up-to-date data possible. This can be difficult if you don’t have the staff, expertise or financial resources to support the advanced on-premise software required.
Cloud ERP systems often have the most up-to-date data analytics tools. By the very nature of the cloud, you’re able to scale up your storage and resource usage as needed, so you don’t have to buy more hardware to run analytics. As a result, your business, from the shop floor to Sales, can use the most accurate information to make decisions, whether it’s maintaining quality or upselling a customer.
2. Accelerated Implementation
Implementing an on-premises ERP system can take many months, and sometimes years, to complete. That includes the needs assessment, planning, business process improvement and ERP selection phases, hardware purchases, installations, and more.
A cloud ERP system can be up and running in far less time than it would take for an on-premises ERP system. Cloud ERP removes the steps involved in purchasing and installing hardware, and configuring and implementing software. In some cases, a cloud ERP system can be live in weeks.
3. Reduced Maintenance
In addition to being able to go live quickly, choosing a cloud ERP solution means that less IT staff time is spent maintaining the system – and more time is available to do tasks with more strategic value. The software provider installs patches and updates so that you always have the most current version and immediate access to new features and functionality. Additionally, the cloud provider is responsible for installing more storage space and upgrading nodes, as well as running the power and cooling to the servers.
4. Robust Security
ERP systems hold large quantities of sensitive company data, including customer lists and payment information. A security breach can be very costly in terms of lost revenue and lost customer trust.
Security traditionally has been considered a barrier to cloud adoption. And many IT organizations think cloud applications are less secure than on-premises solutions. But the perceived risk gap may have disappeared. A September 2019 survey of U.S. and UK security professionals found that 61% say the risk of a security breach is no greater, or even lower, in cloud environments. Here’s why: Cybersecurity is a specialized discipline, and it takes only one crack for a hacker to enter the system. Cloud providers have a team of security and compliance experts with far more expertise than you can develop in-house.
5. Lower TCO
While cost shouldn’t be the only factor considered when moving to a cloud ERP system, it’s still an important reason why a move may make sense for your organization. In addition to the money saved by not owning the hardware, companies also reduce costs associated with hiring specialists to implement and maintain the system from top to bottom. The cloud provider takes care of all of that for you.
5 Steps to Developing a Cloud ERP Transformation
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Conclusion
A cloud based ERP system can be a game changer for manufacturers and distributors dealing with today's business challenges. From reducing costs and improving scalability to offering real-time insights and robust security, cloud ERP solutions provide the flexibility and efficiency that today’s businesses need to thrive. Plus, cloud ERP software allows seamless integration with emerging technology, setting up future-proof, adaptable operations to meet tomorrow's challenges, too, as your business grows.
If your business is still relying on outdated systems or struggling with inefficient processes, it’s time to consider the many benefits of cloud ERP software. Ultra can help you make the switch! Embracing cloud ERP can make all the difference in your long-term success. Make the move to the cloud for improved business operations, reduced operating costs and data-driven decision making. Get started by requesting your free discovery call to learn more about which cloud ERP solution is right for you.
