Want to scale up your business operations? Consider investing in an ERP solution.
Businesses have come to rely on ERP (Enterprise Resource Planning Systems) to organize and consolidate information throughout the organization. Historically, ERP inventory management systems were installed on local company servers and company-owned infrastructures, commonly referred to as on-premises.
While this on-premise solution helped many businesses run successfully for years and reaped huge benefits, they fell short in many areas concerning maintenance, agility, and costs. Cloud-based inventory management systems have resolved many of these issues that come with huge investment in an on-premise ERP system and offer many benefits and advantages.
But how is the cloud-based system different, and can different industries benefit from it? Let’s find out!
Cloud-Based ERP System
ERP systems integrate operations across business functions like Human Resources, Finance, IT, Procurement, Warehouse Management, Distribution, Marketing, etc., through database centralization and automating complex processes. This leads to business process improvements and productivity.
With an on-premise ERP, the company has to invest in infrastructure to house the ERP system that runs on the company’s internal software. But a cloud-based ERP system allows cloud vendor servers that are accessed over the internet. So, vendors manage the company’s cloud ERP on their on-premise software and data center and give them access over the internet. This process is called hosting.
Another popular model is SaaS (Software as a Service), which has a multi-tenant architecture. It means that it is differentiated at the database level, so different customers can use the running version of the same software simultaneously. It creates economies of scale for the vendor as they only have to maintain a single code base, and all customizations and integrations are carried forward with every upgrade. SaaS model requires frequent upgrades from the customer’s end but is relatively easier to do than the on-premise system.
Industries That Can Benefit From Cloud ERP
A cloud-based ERP system can help companies become more agile and adaptable to the transforming logistics and supply chain processes across the globe. The following industries can benefit from cloud-based ERP systems:
ERP system has begun to play a vital role in finance, purchasing, production, and operations departments in manufacturing industries. It makes it easier for your departments to accomplish internal communication and ensure that the value chain runs smoothly. Research reveals that 48% of manufacturing industry leaders claim that industry-specific software aids businesses to perform more efficiently.
Your teams in the finance department will be able to set up custom reporting and projections. In contrast, the operations and productions teams can set up notifications for recalls, broken machinery, low inventory levels, etc. The recall alerts will be sent out to affected customers and vendors accurately with an integrated CRM module. And your warehouse teams can communicate in real-time to ensure inventory visibility and accuracy to meet your customer’s expectations.
ERP software in retail plays a valuable role in increasing customer demands. Combined with a CRM module, your sales managers and account managers can access cross-channel and view the war house levels’ status in real-time. Then your operations team can ensure accurate stock that needs to go to retail through distribution.
Retail modules can be individualized based on your company’s needs like product discount offer modules, stock transfers, stock allocations, product financials based on LIFO and FIFO, sales payments, marketing, inventory tracking, etc. Retail brands focus on direct selling; therefore, your ERP system and modules will reflect customer-oriented functionality.
An ERP software can help your company with several processes like financial management, contractor management, inventory management, equipment management, human capital management, project management, vendor management, bid management, customer relationship management CRM, scheduling, submittals, and asset management.
These tools can help you monitor a project’s entire lifecycle and use the essential tools to ensure it is complete on time and to your client’s satisfaction because any discrepancies in documentation in a manual system can cause your project to delay and hinder your business growth.
If you are in the automotive industry, ERP can help you with both manufacturing and supply chain. The ERP software will integrate your supply chain activities like monitoring projects and executing designs. You can save costs with a cloud-based ERP that will have an improved and accurate system to carry out your daily activities.
ERP system plays a valuable role in the automotive industry because businesses have to keep track of all the parts of the vehicle that go through a complex assembly process. Your business can expand its global outreach with a smart ERP system in place that can streamline your supply chain process and centralize your information database so all your business functions can run like a well-oiled machine.
As a healthcare provider, cloud-based ERP software can help you integrate daily activities in your system like payrolls, procurement of medical supplies, utilities, waste management, etc. Its account management tools can help you manage your finances effectively. Also, its business tool features will allow you to analyze crucial metrics of quality care versus costs incurred so you can create a balance to run your facility effectively.
Combined with the Patient Relationship Management module, you can closely monitor relationships with patients, clients, and researchers connected to your facility.
Customized ERP software can help your company function effectively and integrate your business departments by facilitating conversation and work status visibility and accuracy.
If you are looking for a company to partner with and set up your cloud based inventory management software, check out AltheaSuite. They provide customized ERP software that can integrate your different business functions into modules linked up to a central database.
Their cloud-based inventory management systems and order fulfillment software can help expand your business and optimize your finances in your specific industry. Get in touch with them to learn more about one of the best ERPs for inventory management.
About The Author:
Ava Thomas is an IT technician and an expert on ERP-related business solutions. She is passionate about informing his readers about the latest technological developments and how they are transforming the world today.