About 25% of small manufacturers use cloud-based software, while 20% are looking to expand into cloud software. These and other statistics back up what we know about cloud-based ERP: manufacturers can tap into powerful software that was once the purview of larger companies who could afford the on-site costs and maintenance of larger networked servers.
Cloud technology offers powerful and sophisticated finance and accounting software to companies of all sizes. It levels the playing field among the big and the small and makes it possible for all manufacturers to access data that can be used to drive business decisions. It’s changing the face of manufacturing for the better.
Lower Production Costs with Cloud-Based ERP
Cloud ERP is lowering production costs for manufacturers. One way in which cloud ERP can help lower costs is by providing useful data and accurate cost analysis. By combining data from various 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
Lower production costs give manufacturers some leverage in how they price their goods. They can use the added profit to shore up overall profits or lower prices for a competitive advantage.
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.
IT Funds Made Available to Other Projects
It’s not unusual to find companies duct-taping their systems to keep them going. Patching, repairing, and updating systems that aren’t working properly may seem like it saves money on new technology but it just wastes funds to maintain and repair systems. If you’re like the average manufacturing company, you’re probably running several outdated systems and keeping them operational through plenty of hands-on work.
Because cloud systems are updated automatically by the vendor, you don’t need to worry about loading updates and managing patches. The vendor takes care of all necessary updates. You can then move your technology resources and IT budget into other projects. Upgrading to cloud-based ERP can save your company considerable money while fueling other IT projects for growth.
Another area in which companies can save through cloud computing is in security. If you manage your own seat-based software now, you’re providing all of your own internet security. This also includes funds set aside to clean up security breaches. With cloud ERP, the cloud host vendor takes care of all the security needs. You don’t have to worry about updating security or installing new firewalls. The vendor takes care of it all.
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.
Lean and Swift Cloud Manufacturing
Managing spreadsheets is both time and labor-intensive. Companies relying on spreadsheets to manage abundant manufacturing data find they need to devote several employees to the task of inputting data, creating reports, and ensuring accuracy. It can take a lot of effort to maintain poor systems!
By adding cloud ERP, you can shift data entry tasks into automation, saving considerable time and effort. Once you can see the data, you can scale and shift production into more profitable ventures, and you can do so more quickly.
Employees using cloud ERP can view all customer orders at one time and batch production accordingly. This enhancement incorporates lean manufacturing processes and enables more efficient use of materials, equipment, and staff.
Studies have show that overtime costs can be cut by as much as 60% after cloud ERP adoption because of lean manufacturing processes. With better use of time, equipment and personnel, companies no longer needed to add shifts to accommodate extra orders. This increases profits by lowering costs and increasing production time.
Acumatica Cloud ERP from Accounting Systems Incorporated (ASI)
Acumatica Cloud ERP offers a powerful, cost effective method of reducing costs and improving lean manufacturing strategies. It includes software for accounting, finance, project budgeting and much more. Data is synchronized among multiple locations on the same software so that manufacturing work in Atlanta can be viewed in real-time in Memphis. Acumatica ERP offers so much in one package for manufacturers.
Accounting Systems Incorporated (ASI) provides ERP, accounting, and other software and systems to help your company grow. We focus on helping small to mid-sized companies improve operational efficiencies through the power of software and technology. Software such as Acumatica ERP can provide the business intelligence you need to grow your company. For more information, visit our website, or call us at 803-252-6154.