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Collins Computing

How Cloud Technology Can Benefit Manufacturers


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Recently Gartner published a study showing that the use of cloud computing is becoming ever more popular. Some organizations that previously have chosen to continue to utilize on-premise deployments may think again when offered a two-tier option. Businesses with a global reach, particularly Manufacturers, are advised to:

consider cloud ERP as a potential replacement for aging core ERP systems that are out of support or running on old technology platforms (such as mainframes).“

In the article “Why Cloud ERP Adoption Is Faster than Gartner Predicts,” presented by Louis Columbus on Forbes.com, the prediction is made that many enterprises plan to move core business functions, mostly administrative tasks, to the cloud within five years.  There are various options for managing financials, human resources and procure-to-pay in the cloud, but there is also a lot to be said for moving manufacturing and delivery management solutions to the cloud in a two-tiered approach. According to Columbus:  “From researching and working with manufacturers where two-tier ERP strategies make perfect sense for extending their legacy ERP systems to move into new markets, the following key take-aways emerge”:

Speed: Faster time to market is essential for most manufacturers. They either deliver speedily or risk losing business to a company that can. Cloud-based ERP streamlines not only supply chain activities but also other aspects of manufacturing and distributing, thus increasing efficiency and profitability. The cloud can help handle tighter schedules and reduced budgets.

Improved compliance: Regulatory compliance can be a nightmare.  Keeping up with various federal, state and local requirements is essential. Data must be captured and analyzed from various locations as well as shared quickly and easily within your global organization. Using a Cloud solution helps to ensure that your statistics are always up to date and compliant no matter where you are.

Mobility:  Having warehouse data available to you on various smartphones or tablets means that you are connected even when you are off-site. Data is delivered speedily and with up to the minute accuracy. Remain in contact with your global sales and service teams and have the information you need to make strategic decisions regarding logistics, inventory and processes. Provide superior customer service and monitor all aspects of your global operations.

While the Gartner study suggests that some manufacturers aren’t yet taking advantage of cloud solutions, they may not have asked all the right questions. Cloud-based ERP offers many benefits to manufacturers and to businesses in other industries.  Contact Collins Computing to discuss how the cloud can benefit your business.

By Collins Computing, a Microsoft Dynamics GP Gold Certified Partner out of California

 

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