There seems to be a noticeable shift among small- and medium-sized manufacturers (SMB manufacturing) towards cloud enterprise resource planning (ERP). This is notable because prior to 2020, I found there was a real reluctance by many in this space to look at cloud solutions. I believe this change has been caused by factors both obvious and not so obvious.
So what exactly are the driving factors that have caused this change?
A more mature understanding of the cloud: Small and mid-sized manufacturers have realized it is their best option for future growth. It used to be believed that SMB customers did not have the capital or technical resources to run a full ERP implementation. This thinking has been proven incorrect by thousands of companies who successfully implemented a cloud-based ERP solution. Plus, many SMB customers now can’t justify running an in-house ERP if it means they’re missing out on key benefits like easy scaling, the lower total cost of ownership (TCO), and more efficient back-office processes.
High confidence in the future of cloud: There was a time when cloud computing was not necessarily thought of as the best option for SMB. However, in recent years, the climate around cloud has changed and today’s SMB customers are more likely to try or adopt a cloud-based ERP solution. I believe part of this change is due to the increased maturity and success of new cloud market leaders like Office 365 and Salesforce1.
Five major reasons for the shift
- Covid-19 has demonstrated that hybrid work is both effective and sometimes necessary.
- Cloud technology platforms have matured, especially in the SMB space
- As baby boomers exit the workforce, it’s accelerating the path for Gen Xers and millennials to management positions
- Advances in broadband are making it more practical to adopt cloud solutions.
- New techniques to deploy this technology reduce the fear and risk associated with the change it implies.
Hybrid work benefits from cloud ERP
The events of 2020 pushed many manufacturing businesses to accept these technology changes, and it turned out much better than they expected. It is well known that the Cloud ERP options out there are highly beneficial, but SMBs are still hesitant about adopting cloud ERPs. I think this hesitation is mainly because small and mid-sized manufacturers are just not sure if it is worth the effort
Of course, one recent case study in our company shows us how a hybrid implementation can be successful and why it should be considered.
Covid-19 has made significant progress in its adoption of hybrid work practices. Various partners have reported on their success with hybrid work practices at manufacturing customers across various industries like consumer products, automotive, food & beverage, resource production, and education & healthcare.
Covid-19 has implemented its new ERP system and is using cloud technology for hybrid development work.
Covid-19 has been widely considered as a favorite ERP Software provider for Cloud ERP solutions. The company has already covered over 1000+ customers worldwide across various industries. The company’s main focus is always on helping companies to grow the business while using their products by focusing on the latest technology that can be used in the manufacturing business.
The choices for cloud ERP have improved
It seems that we’re now in an early majority situation with cloud ERP in SMB manufacturing. That’s a big change compared to early adopters only two or three years ago. If you’re stuck in the past, it’s worth checking out some of these key cloud ERP choices for SMB manufacturers to see if they’re a good fit for you.
Informational technology professionals in these small businesses are typically understaffed and infrastructure-focused. It’s understandable they aren’t keen on investing in a full ERP system. However, these business-driven SMBs are all about the bottom line.
Cloud ERP in Manufacturing is a great source to provide and improve the efficiency of the manufacturing businesses. It seems like a no-brainer for these companies to implement these cloud ERPs as they can help them to stay adaptable to their customers’ needs.
All of us in the business world know that our success depends upon our understanding and anticipation of market shifts as they occur. If you are still running on an older version of ERP software, it’s time for SMBs to embrace hybrid work practices and consider moving their ERP to the cloud. There is plenty of evidence that it will help them save money, time and improve their overall performance.
Interested in reading more about cloud manufacturing? IoT and ERP Integration – 3 Reasons Why You Should discuss how ERP integration and IoT are beneficial in a business today.
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