The cloud: An ever-present resource that delivers hosted services via the internet rather than requiring built and maintained in-house computer infrastructures.
ERP Software: An enterprise resource planning software system that collects, stores, manages, and interprets data from every business activity within a company.
What is cloud-based ERP software and what are its advantages for suppliers and manufacturers in the construction industry? Here are eight.
1- Lower Initial Investment
On-premise software requires a rather hefty up-front fee, a significant budget for hardware and infrastructure, and dedicated employees for overseeing and troubleshooting the system.
Cloud ERP software is paid via monthly or annual subscription, spreading out the costs evenly. Not only does this make your investment an operating expenditure rather than a capital expenditure, but budgeting and forecasting will be easy and straightforward. Also, no additional budget is required for hardware, servers, or other infrastructure and dedicated IT staff won’t be on your payroll.
This lower initial investment makes it possible for companies of all sizes to enter the cloud-based ERP arena.
2- Higher Return On Investment
A lower life-cycle cost is expected with cloud-based systems since there are fewer upgrades needed along with their resulting fees. Also, since fewer employees are needed to oversee the system, ownership costs will be much lower than those of on-premise systems that must be maintained and upgraded regularly.
3- Minimal Technical Staff Required
With cloud-based ERP software, the provider installs and integrates the system for your company. Security experts are employed to protect cloud-based servers so your company’s data (as well as your client’s data) is secure. The software providers are also responsible for all of the system’s updates, maintenance, service, and data security. This leaves your own IT specialists open to work on other tasks and priorities.
4- Lower Need for Customization
Cloud ERP software provides powerful integration capabilities for seamless transition into your existing structure. Since few customizations are required, the system offers great stability to its users.
On-premise ERP software relies on manual processes which take up time and leave the door open for human error. Contrast that with cloud-based ERP software which uses automation to save time and achieve error-free results.
5- Rapid Implementation
Typically, cloud-based systems take much less time to implement, possibly less than a few weeks, compared to the months sometimes required for an on-premise system.
These ERP software programs are easier to use than on-premise programs. Cloud-based connectivity meets the needs of every department in your organization. The system will receive and share information from other department programs and systems so that everyone can be on the same page and reports will be complete and functional.
Cloud ERP software is designed to give information and insight to everyone, formatted for each employee’s particular role. This allows questions and answers to be given directly and immediately.
6- Increased Scalability
Scalability is essential in today’s business world and a cloud-based ERP system will help your business achieve it. The manufacturing industry is a dynamic field where changes can happen quickly. Cloud-based systems allow for flexibility with changing project workloads, location changes, multiple work sites, and company growth.
7- Enhanced for Mobile
Cloud-based systems can be easily accessed on a smartphone, allowing for on-the-spot, real-time information that can provide greater visibility for your increasingly mobile workforce. This capability allows quicker, more accurate decision-making opportunities and greater operational agility.
8- Improved Collaboration
With greater visibility comes improved collaboration between team members and departments. Everyone including customer service representatives, account executives, and CEOs will be on the same page. All collaboration is tied together alongside associated transactions, providing a complete picture while also allowing restrictions when needed.
By allowing employees to communicate effectively and enjoy a more streamlined workflow, they’ll increase productivity and customer satisfaction.
The advantages are clear. Get cloud-based ERP software today and run a better business tomorrow.