With increasing pressure to digitalize operations, many manufacturing organizations still hold misconceptions about what cloud ERP can—and can't—do for their business.

Let’s explore four common myths about cloud ERP in manufacturing and how this technology can unlock real value for your organization.

Myth #1: Manufacturing processes are too complex to run in cloud ERP.

Many manufacturers believe their competitive advantage lies in the intricacies of their production processes, and they fear that cloud ERP might not support this complexity.

However, cloud ERP is designed to manage complexity without adding to it. Its user experience streamlines interactions and improves efficiency, introducing complexity only when necessary. The software includes embedded analytics for real-time, comprehensive insights; intuitive features such as drag-and-drop planning boards; and AI-assisted exception handling and alert systems for smoother execution.

Cloud ERP balances complexity and simplicity, reducing the total cost of ownership. It supports various manufacturing types— from discrete to process and repetitive—and can address specific business needs through extensibility and integration to preserve operational flexibility without increased costs.

In short, cloud ERP packages complexity in smarter, more efficient ways  and enables businesses to benefit from software as a service (SaaS) while running processes as complex as needed.

Myth #2: Manufacturing processes in cloud ERP are always standardized.

Contrary to popular belief, cloud ERP is not limited to standardized processes. While sticking close to standard processes has benefits, manufacturers can still differentiate by leveraging the technology’s extensibility and integration capabilities.

Extensibility for customization

Manufacturers have access to methods for individualizing processes without conflicting with the SaaS model. For example, they can:

• Add custom fields to production scheduling
• Define custom demand elements in material requirements planning (MRP)
• Build and integrate dedicated applications as process extensions

Integration for differentiation

Cloud ERP includes built-in integration across manufacturing, logistics, and finance processes that streamline operations. For further differentiation, manufacturers can integrate additional solutions, such as industry-specific tools or specialized solutions for design, planning, or manufacturing.

By using these extension and integration options, manufacturers can tailor processes to meet unique business needs while benefiting from cloud ERP’s efficiencies.

Myth #3: Cloud ERP primarily supports finance processes.

Cloud ERP isn’t just for finance—it also provides comprehensive manufacturing and logistics support. And, when integrated with financial processes, every aspect of the business can operate more smoothly and profitably.

Comprehensive manufacturing support

Key manufacturing functionalities in cloud ERP include:

• Demand and supply coordination to manage demand, help ensure supply coverage, and handle production scheduling and execution
• Real-time, data-driven insights for quick, informed decisions and effective impact tracking

Customizable to meet advanced needs

For businesses seeking to go beyond standard cloud ERP processes, specialized tools offer additional capabilities, such as:

• Supply chain planning solutions  to enhance demand forecasting and planning
• Manufacturing execution systems (MES)  that automate shop-floor operations and connect machines and sensors for better control

Cloud ERP offers a flexible foundation for manufacturing, with modular options to scale and optimize specific processes for added differentiation and value.

Myth #4: Cloud ERP does not offer the performance and reliability that manufacturing organizations need.

Manufacturers often worry about the performance of cloud ERP, particularly since production processes rely heavily on system efficiency.

While no system guarantees 100% uptime, the performance and reliability of cloud ERP are continually improving to address these concerns as technology advances with:

• Enhanced service-level agreements (SLAs) for high availability and reliability
• Ongoing investments in technology to decrease maintenance windows and latency
• Global data centers that minimize delays by providing a geographically distributed infrastructure

The modular design of cloud ERP further reduces the impact of system downtimes. For example, when cloud ERP is integrated with an MES, production operations can continue, and data can be captured and accessed during cloud ERP downtime. Once the cloud ERP is back online, the MES synchronizes seamlessly with the system.

In summary

Manufacturing organizations should embrace cloud ERP as a viable option. Why? Because the technology offers the complexity needed for differentiation and an exceptional user experience, compared to legacy on-premise systems.

So instead of fearing standardization, view cloud ERP as an opportunity to modernize and streamline processes while retaining your business’s unique value. With its ability to integrate operational and financial processes, the technology can become the nucleus of your business.

As technology advances, the trade-offs diminish, making cloud ERP the clear choice. So, why wait?

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