The advantages of manufacturing Cloud ERP solutions and the drawbacks

Cloud ERP is a Software as a Service that enables users to access Enterprise Resource Planning software using the internet. ERP is an integrated or modular suite of business applications, commonly used in manufacturing processes, due to its ability to help businesses improve their processes. The integrated workflow assists in managing a range of business relationships. Here are some of the advantages of manufacturing Cloud ERP solutions, as well as some of the drawbacks.

Advantages

Spread your costs

Cloud ERP allows any manufacturers to breakdown their business system costs. A cloud system often has lower implementation fees than on-premise solutions. Once you implement the system, the costs are per user, per month. Companies will know the exact amount of monthly expenditure, which keeps costs transparent.

Greater security

One of the advantages of a Cloud-based ERP system is that it is more secure compared to an in-house system. As it is provided, as a platform, the provider will continuously keep it up-to-date and ensure the technology used is the latest edition.

Improved scalability

A benefit of Cloud ERP systems is that they allow users to quickly scale up or down, depending on the needs of the business and it would just be an additional cost based on the level of users. With on-premise scaling, the process can be lengthy and costly. Cloud ERP keeps everything running smoothly and offers fast scalability.

Flexibility

It can be accessed, from anywhere, anytime with an internet connection, which gives your business a lot of flexibility. This access allows users to share data, make decisions and view reports from anywhere, at any time and enable collaborative working. You can also access the solution from your computer, tablet or smartphone.

Drawbacks

Less customisation

One drawback of Cloud-based ERP solutions is that there are restrictions when it comes to customisations. There is often a strict template in place, which speeds up the implementation process but also prevents customisation. If your manufacturing business wants to take a personal approach or have complex needs, then Cloud ERP may not be the best option. Therefore, it may also not be suited to larger firms who want more control.

Less ownership

With Cloud ERP, you can receive updates that your business may not need, as the vendor will look after and owns the platform. However, some vendors will offer customers to test the new release first before changing their live system. These automatic updates will save time but can become a problem if your company is not ready for these updates. Adjusting to any changes can lead to downtime, especially if employees aren’t ready to change to a new version.

Fewer product suites

Few providers offer a single suite of products. Most focus instead on specific applications. Therefore, this could cause a possible cost increase, as you may need to integrate with existing or different products or even invest in other modules within the new cloud suite. When you are choosing a Cloud solution, always review the pricing structure to see which functionalities are included and what is additional. If your manufacturing business has very complex operations, it may be that Cloud ERP isn’t the best option.

Trouble with connectivity

With Cloud ERP, you need to be sure that your internet provider will be reliable. If your internet goes down and you lose connection, you may lose access to the ERP, which can cause your operations to slow down.

If your manufacturing company is looking for a Cloud ERP solution, then WinMan can help. We offer integrated ERP solutions specifically aimed at the manufacturing and distribution sectors, ideal for both single and multi-site enterprises.