Canadian Manufacturing

The top reasons why manufacturers are considering Cloud ERP

According to G2, 62.7% of organizations today are opting to go with cloud-based ERP systems over on-premise software.

April 19, 2022   by Paulo De Matos, Chief Product Officer, SYSPRO

The benefits of ERP for manufacturers and distributors

Ongoing disruptions over the last few years have revealed business vulnerabilities and the need for manufacturers to adapt and scale quickly according to changing pressures. Many manufacturers have started looking into the benefits of technologies such as advanced planning systems or capital management technologies to remain resilient while others are considering Cloud ERP.

According to G2, 62.7% of organizations today are opting to go with cloud-based ERP systems over on-premise software.  Here are the top reasons why manufacturers are considering a Cloud ERP solution:

  1. The ability to engage and collaborate in real-time

From Brexit, to the pandemic and regional instabilities, supply chain disruptions have been far-reaching and complex. New research from SYSPRO shows that over the last few years, 60% of businesses were unable to engage with customers or suppliers adequately.  This has been part of the reason why supply chain disruptions have not been easily resolved. Manufacturers have simply not had clear visibility into supplier delays or customer demands. Added to that, only 44% of respondents had invested in solutions to engage with the ecosystem moving forward.

Cloud ERP could be part of the solution. By integrating operations into a Cloud ERP platform, manufacturers could have real-time access to customer and supplier data as well as tap into emerging technologies with the right capabilities to ensure agility and connectivity with their external ecosystem.

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  1. Future-proof operations

The ability to tap into emerging technologies is an important consideration in a business’s digital transformation plan. According to a recent SYSPRO CFO 4.0 survey, only 19.3 percent of businesses confirmed that they would replace aging machinery. Rather, the emphasis is on investing in technology to make manufacturing smarter and less vulnerable to future disruptions. In fact, over 52 percent of businesses identified the investment in enterprise technology such as ERP, BI, and CRM as a key strategic focus area. Cloud ERP allows easy integration with the latest technologies to secure a digital future and to gain a competitive advantage.

  1. Ease of customization

The pandemic has been the single greatest disruptor for manufacturers and distributors. While it is causing downtime, it is also inspiring innovation. The recent SYSPRO CFO 4.0 survey showed that 49 percent of businesses looked at innovating through a new product-line and 39 percent of businesses invested in new routes to market through eCommerce platforms. The pandemic even inspired new capabilities for application platforms, integration and low-code/no-code development.

The reality is that new product-lines, integration with eCommerce platforms and extensibility with low code tools is possible with Cloud ERP. Deployment of an ERP system in the Cloud allows manufacturers to connect disparate business systems and streamline how a business functions. It allows for low or no code customization to simplify the user interface and surface business intelligence where it’s needed.

  1. Reduce IT Infrastructure, Resilience & Management Costs

One of the primary reasons for an organization to select or move to a cloud-based ERP solution is the cost savings and reduced risk when compared with an on-premise deployment of an ERP system. On-premise deployments can have a high IT setup and ongoing resource cost, which is eliminated by the provision of Cloud ERP. Additionally, IT resilience and compliance challenges such as backups, recovery management as well as the ongoing requirement to ensure suitable performance of the ERP solution are also minimized.

While manufacturers have realized that they need to review their current technology solutions to meet the challenges of the future head-on, the key to success in this new digital era is selecting a Cloud ERP platform that is built from experience and designed with the needs of manufacturers and distributors in mind. By integrating your operation into an ERP platform, you can ensure agility, connectedness and embrace innovation to transform your business for enhanced growth and long-term sustainability.