Top 6 Factors Driving Cloud ERP Success
Companies with high growth face challenges such as production efficiency, product quality, disconnect between engineering, production, and sales, and meeting delivery deadlines.
These challenges arise because the current ERP systems at these companies’ cannot adapt to rising production volumes and the complexities of growth.
The existing or ‘legacy’ systems at these companies can manage production with only few suppliers and products and simple servicing, selling, and distribution channels. Given how quickly numerous businesses are growing, these legacy systems’ contributions are becoming increasingly limited.
This is the major reason behind the rising popularity of cloud-based ERP systems. Let us look at the top 6 factors that are driving the success of cloud-based ERP systems:
1. Improvement in Quality of Product
Most companies today, depend on a single and flexible cloud ERP system across all their manufacturing locations to enhance the quality of their product. Compliance and quality systems are often separated from other accounting and manufacturing systems, making it very hard to get a complete overview of the quality. Cloud ERP systems offer a highly scalable record system based on a single database. Quality becomes tactical, compliance is more manageable, and it also results in superior customer satisfaction.
2. Better Analytics
Cloud ERP systems developed on a single database architecture offer analytics and reporting at each phase of manufacturing. This allows the manufacturers to gain access, valuable insights, and enhance their operations. Cloud based ERP platforms are also becoming more adept at offering advanced manufacturing metrics.
3. Greater Mobility
Mobility is vital for manufacturers who want to manage all the functions even without being in office all day. Cloud ERP systems readily support mobile access to the applications from any device with an internet connection irrespective of its location.
4. Real-time Monitoring of Processes and Production
From global leaders to small and medium sized companies, all are adopting real-time monitoring of processes and production. Improving the production efficiency, increasing the percentage of timely delivery to customers, and improving the overall manufacturing execution are just few of the several factors driving the rapid adoption of cloud based ERP systems.
5. Optimizing Performance and Overall Growth
Manufacturers dependent on cloud ERP systems are in better position to plan and manage their business development while improving the overall performance. A major part of any successful development strategy is making customers loyal advocates of their products or services. With most of the profits coming from the current set of clients by either cross-selling or upselling new services and products, having real-time information of the product and its delivery dates is vital for the business growth.
6. Cutting Down Expenses with More Agile Approach
Cutting down the one-time cost while offering companies with more flexibility to manage the business processes has become very important in the recent years. Cloud ERP is significantly helping companies to cut down their expenses with more flexibility by offering a chance to integrate data from their legacy systems while giving access to the latest features to generate all the necessary insights for efficiently operating their businesses.