Cloud-Based ERP Systems can Improve Efficiency

Recent research and industry case studies have revealed that cloud-based ERP systems if implemented correctly, have radical benefits in terms of efficiency, productivity, and resource use. In fact, one company, Panova reported a 400% increase in efficiency gains when they made the switch from on-premise ERP to cloud ERP. 

The smartest and most cutting edge organizations are moving their on-premise enterprises to the cloud, and it’s proving highly beneficial for the logistics and supply chain process in the long run. Cloud ERPs are enhancing productivity, improving the user experience, reducing the paper trail, and creating a significantly more connected and efficient business. 

Reach out to our team today to see how we have helped other customers implement and integrate cloud-based ERP systems.

What is an ERP? 

An ERP (enterprise resource program) is a software and hardware system that pulls together all the functions of an enterprise, like a warehouse or HR business. It can also organize other parties’ information to create a seamless and cooperative experience along the entire supply chain. Its goal is to create a holistic view of a business, from major infrastructure down to individual details on paperwork. It collects and records data, manages and integrates all the systems, and helps to analyze forward-moving decisions. 

Learn more about how an ERP system works here. 

Enterprise resource programs tend to be more all-encompassing than other management systems. They’ll work with and connect various departments, from the logistics floor to the HR department to learning and development. It essentially allows the entire business to share and analyze data across all divisions, horizontally and vertically. It’s a “total enterprise” resource. 

In the past, ERPs have been utilized with on-site hardware. The problem with these traditional ERPs is that they are slow to change or update, so they’re pretty static in how they operate. You get what you get, and any changes or updates require extensive modifications. The hardware is also expensive, bulky, and requires an on-site monitoring staff. ERPs are a bit clunky, which is why the cloud ERP has made such a strong debut. 

What is a Cloud-Based ERP? 

A cloud-based ERP takes the traditional model of an ERP and puts it in the digital world. This allows for internet accessibility, which connects the business community and its partners. A cloud-based ERP is typically presented as Software as a Service (SaaS), which is a software application utilized over the internet. 

Although a lot of businesses are already using ERPs, the keenest ones are moving their ERPs into the cloud to solve the concerns that on-premise ERPs have shown in recent years. The sort of internet accessibility you get with a cloud ERP enables a significantly higher quality system that positively impacts every part of the business, from faster decision making to enhanced collaboration. And it’s not just across the business, but also across the entire supply chain with all partnerships and customer relations.

Read: What is the Best 3PL Software Platform?  

What are the Benefits of a Cloud-Based ERP? 

Cloud ERPs are quickly taking over in every industry, especially for large-scale logistics chains. That’s because cloud computing provides greater scalability, flexibility, reliability, growth, and cost. 

A cloud ERP system is done without hardware required on campus. It’s a software application that you can download and use anywhere there’s internet connectivity. This means cloud ERPs can be continuously upgraded with new versions and changes to ensure the company is always up to date. This provides more flexibility as well, so companies can customize it to their business’s needs. There are also greater security benefits, improved system reliability, and more accessibility for employees. Cloud systems also have lower capital investments required, since there’s no need for hardware, infrastructure, or on-premise staff. 

Plus, a lot of cloud ERPs have started utilizing artificial intelligence, so they can actually be used to help analyze and improve your business at every step along the way. This kind of learning doesn’t just organize your business; it actually enhances and grows your enterprise from the inside out. 

The greatest benefit of a cloud-based ERP is, quite simply, the improvement of inefficient operations and processes. Nearly every business that has implemented a cloud ERP has reported that their efficiency has gone up dramatically in various areas. Greater efficiency comes along with improved communication, higher productivity, lower costs, and enhanced customer service—which all mean greater revenue and market share. 

What are Some of the Challenges You are Likely to Face?

Not all cloud ERPs work out, though. Some have gotten a bad reputation. That’s usually only because the implementation of those ERPs have failed, though, not because of the cloud model or software itself. Most failures come from a lack of operational change management throughout the company. That’s why it’s absolutely critical to create a plan for implementation before introducing a cloud ERP to your business. (Get some information about how to perform new management integrations here.)

Other potential challenges of a cloud ERP include:

• Limited or missing functionality after going live, but this can usually be fixed quickly
• Upgrade outages
• Downtime
• Internet-connectivity concerns 
• Unexpected maintenance and service fees

Like anything, the success you see with your cloud ERP will be dependent upon the computing company you work with. 

Check out a list of Forbes’ most popular ERP systems with users. 

Improved Efficiency

Despite some of the challenges of implementation, the benefits of moving to a cloud-based ERP are too strong to dispute. Most notably, companies are reporting significantly higher rates of productivity and efficiency a few months after the transition to an ERP. The stagnant traditional ERP model is being overrun by the incredible cloud options that are making inventory, finances, HR, production, service, purchasing, MRP, supply chain logistics, and more as simple as a click and connect. 

Curious what kind of tech advancements would work best for your business or logistics supply chain? Get a free, no-risk consultation about your company’s needs to see what the future can hold in store for you.