Enhancing Productivity through a Manufacturing Cloud ERP System

4 minutes read - March 16, 2022 - by Yondu Team
Enhancing productivity is challenging for many manufacturing companies due to the growing need and changing landscape of the industry. Because of the flexibility and scalability of cloud technology, having a Cloud ERP System can greatly help in easing common productivity problems.

The Enterprise Resource Planning (ERP) System has been existing for quite some time already. From being deployed on-premise to cloud, ERP has indeed grown to cater to the needs of different businesses.

There are even different ERP versions tailored for various industries: construction, banking, financial services, insurance, logistics, and even manufacturing.

In fact, the manufacturing industry is one of the critical drivers of revenue and employment worldwide. 

In the Philippines, the manufacturing industry comprises more than half of the country’s industrial sector. Almost a quarter of the country’s Gross Domestic Product (GDP) is coming from this industry. 

However, like any other industry, the manufacturing industry is also disrupted by emerging technologies worldwide. 

This dramatically affects the business productivity. When productivity fails to grow significantly, this can cause revenue loss. 

An Enterprise Resource Planning (ERP) System is supposed to aid manufacturing businesses in their day-to-day operations to become more efficient and productive.

However, because of the growing needs of the manufacturing industry, a Commercial Off-The-Shelf (COTS) ERP System is no longer adequate.

4 Major Productivity Challenges of Manufacturing Industry

Enhancing productivity is challenging for many manufacturing companies. With their growing needs and changing landscape, they should overcome the following challenges:

1. Limited Access to Updated Information

Employees in manufacturing companies often miss essential work instructions for the task at hand due to manual workflows and miscommunication. 

Ensuring these employees have instant access to updated information and instructions is crucial to achieve success and increase productivity.

2. Lack of Reporting Tools

One crucial thing manufacturing companies should always consider is the future demand. 

However, forecasting is hard because the tools most companies use now are not capable of effectively estimating future demands.

As a result, manufacturing companies fail to meet customer demands and suffer from lower sales.

3. Outgrowing Current Inventory System

The root of almost every problem a manufacturing company faces is its outdated system. 

To stay on top of effective and efficient inventory management, you must have adequate and scalable technology to adapt to your growing business needs.

4. Overwhelming New Technologies

Manufacturing companies should adapt to any technological change to stay on top of the market. 

The disruption caused by technologies nowadays overwhelms many of our manufacturers – investing in a new technology can greatly affect the business productivity.

4 Ways a Cloud ERP System Enhances Manufacturing Productivity

A Cloud ERP System holds so much promise for manufacturing companies. When it is deployed to its fullest potential, it can remove the biggest productivity obstacles at all manufacturing stages.

1. Delivers the required complex functionalities for a manufacturing business

A manufacturing business works in a highly complicated setting that requires a system with a wide range of specific functionalities.

Aside from accounting functions, cost estimation features, and product management, a manufacturing business needs to automate and integrate different production methods, produce accurate Bill of Material (BOM), and set routing standards.

A great Manufacturing Cloud ERP System includes core manufacturing, distribution, financial, and reporting applications with optional, connected applications to tailor the system to your unique manufacturing business needs.

2. Streamlines integrations of your manufacturing applications

A Cloud ERP System for manufacturing businesses saves so much time and money by technically creating one-to-one integrations for your manufacturing applications.

You can now access your software, data services, and equipment on one platform. The right cloud ERP solution will offer integrations that can help you:

  • Streamline order processing from every channel. 
  • View calculated material requirements and create schedules and work orders to meet demand.
  • Manage and sign documents digitally. 
  • Streamline document management 
  • Implement warehouse automation. 
  • Support multi-carrier shipping and automate shipping rules. 
  • Automate transportation management and freight fulfillment processes. 
  • Manage human capital and payroll.

3. Removes your security burden

Manufacturing businesses have a large amount of data to protect. Even after shifting to digital processes, challenges to securities continue to arise due to cyber criminals becoming more limitless to attack and steal.

Given this, many companies are afraid of having a system that can be accessed on mobile. But avoiding mobile technology isn’t an option. It is, in fact, one of the keys to enhancing productivity.

A good cloud ERP solution for the manufacturing industry will provide you with the highest levels of data security.

4. Incorporates emerging technologies easily

The right cloud ERP system can easily integrate with the following technologies on the horizon for the manufacturing industry: 

  • Industrial Internet of Things (IIoT)
  • Blockchain Technology
  • Predictive Maintenance
  • Robots 
  • 3d Printing

Cloud ERP system collects and analyzes data that will help optimize usage. Investing in these technologies increases productivity and reduces costs over the long term.

Wrapping Up

A cloud technology has a lot of potential in adapting to changes because it is scalable and flexible.

Having a Cloud ERP System for manufacturing increases business productivity. It future-proofs your business and connects it to modern technologies to streamline processes. 

The great news is that Yondu Inc, the leading IT company in the Philippines, offers a Manufacturing Cloud ERP System by Acumatica

Acumatica is a leading innovator in cloud ERP with customers worldwide. 

Acumatica’s Cloud ERP System for manufacturing businesses fully integrates your production planning and the shop floor with inventory, purchasing, sales orders, accounting, financial reporting, and customer management for higher productivity.

Bring your manufacturing business to the next level and let it experience the undeniable benefits of a cloud ERP system.

Talk to our experts now.

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