Whether you’re a CEO, CFO, or COO, your job is to ensure your company operates at peak efficiency. With an ever-changing economic and competitive landscape, it’s challenging to remain proactive in giving your customers exactly what they want. Of course, you and your team keep tabs on inventory, production, customer support, distribution, and more. With increased customer expectations around speed, flexibility, and visibility, every company manages an extended supply chain regardless of industry. However, in a supply chain that extends around the globe to meet customer demands on a real-time basis, there are many moving parts. How do you keep track? How do you manage proper information flow, efficiency, and compliance? A cloud ERP software solution can help answer these questions and more.
Why Companies Struggle Without a Cloud ERP
Considering the constant changes in business and technology, it’s no surprise that many companies struggle without a capable cloud-based ERP system. With many companies still using outdated legacy systems, shortcomings include:
Lack of Integration
Integrating with other systems is a significant step forward and can help organizations avoid double data entry and improve productivity.
Slow Processing Speeds
Because many of today’s businesses operate globally and engage suppliers and customers in other countries at lightning speeds, an ERP system must handle complex transactions quickly and efficiently.
No Intuitive User Interface
Many of the outdated legacy systems incorporate user interfaces that lack intuitiveness. While many users are used to the older systems, they may struggle with modern interfaces – even though they may be easier to use.
Limited Customization
Companies struggling with legacy systems bear the brunt of a lack of flexibility. If outdated or on-premises ERP solutions require an upgrade or refinement, it’s often a significant undertaking that requires a great deal of time and money.
On-premises Hardware Costs
It’s no secret that on-premises hardware can be expensive. By moving to the cloud, organizations can cut on-premises hardware costs while also eliminating the headache of managing and maintaining it.
3 Core Benefits of a Cloud ERP Solution
1. Added Clarity
ERP software is all about transparency and compliance at its core. It tracks work orders, staff availability, cost per unit, inventory, distribution, and other operational areas vital to ensuring the business runs at maximum capacity. Data available from various operating areas can be aggregated by managers at each level of the organization to make decisions regarding efficiency, quality, and customer engagement.
2. Increased Flexibility
Cloud ERP solutions offer many flexible ways to meet the specific needs of your business, such as tailoring order forms, running reports, customizing dashboards, and integrating with other solutions. This flexibility provides a single source of truth that gives the organization reliable and up-to-the-minute information on the operation.
3. Better Decision-Making
A cloud ERP solution provides managers with the information they need to make decisions for their teams. Dashboards can show key performance indicators (KPIs) so managers know if their department is operating efficiently and effectively. Regular reporting and alerts inform decision-makers of the status of their supply chain or insight at certain production intervals to ensure the operation remains on track and within budget.
Outcomes Businesses Can Expect with Cloud ERP
Cloud ERP solutions are now accessible to a wide range of businesses in various industries. In addition, several vendors offer a choice of cloud ERP solutions. When it comes to manufacturing firms, there are five major areas where an ERP system may bring dramatically better efficiency while also assisting management in delivering on the promise of increased production and profits. When these areas are mastered, the operation runs more smoothly, customers are satisfied, staff is more productive, and product and service quality are at peak levels.
1. Integration with Your Organization’s Supply Chain
A cloud ERP solution provides visibility into an organization’s inventory requirements and product availability across multiple providers and regions. It also gives businesses control over the entire customer engagement cycle, from order management to final delivery.
2. Production Scheduling
Because cloud ERP systems are built to work with an organization’s supply chain, they are equipped to handle production scheduling. ERP software can help companies determine which products should be produced based on customer demand, current staff capacity, and current stock.
3. Customer Interaction and Retention
Today’s cloud ERP systems can manage data on all current and previous customer interactions, allowing companies to develop more targeted marketing strategies. This capability can help companies anticipate needs, resolve problems, and improve product and service quality.
4. Financial Integration
Robust cloud ERP systems either provide full accounting capability or integrate with third-party financial solutions – fostering real-time data on an organization’s financial health.
5. Managing Staff and Other Resources
A cloud ERP system can help a company manage staff and related resources better. A cloud ERP solution can address staff availability, employee effectiveness, vacation requests, issue resolution, and hiring requirements. This capability allows managers to make more informed decisions regarding scheduling, planning, and growth.
Solutions to Consider
As mentioned earlier, there are many cloud ERP solutions to consider. Most offer the ability to tailor a solution to meet your organization’s unique requirements by allowing integrations with third-party solutions and add-on modules.
The most popular ERP solutions for small to mid-size businesses are:
These solutions can be implemented and configured to meet your financial and operational needs, regardless of industry.
A robust ERP solution in the cloud can be an excellent tool for managing and improving your business. However, it’s only as good as its implementation. When considering a cloud ERP solution, identify a capable consultant who can walk your organization through the complex implementation process, ensuring you realize the desired ROI to put your company on the path to greater efficiency and increased profitability.
Ernie Martin is Founder and Managing Director of Receivable Savvy. He brings over 25 years of experience in financial supply chain management, marketing and communications and draws upon his extensive experience to share knowledge and best practices with AR professionals. He previously chaired the Vendor Forum of the Federal Reserve Bank of Minneapolis and his resume includes time at several well-known brands and companies such as Tungsten Network, Delta Airlines, CIGNA Healthcare and Georgia Pacific as well as a number of years as an independent consultant.
