5 Reasons Cloud Manufacturing ERP Adoption is Increasing in 2021


Perhaps I'm the only one who notices this. Still, I've noticed a shift among small and medium-sized manufacturers toward cloud enterprise resource planning (ERP). This is significant because I saw a natural resistance within this sector to considering cloud options before 2020. This transformation is the result of both evident and less apparent causes.

Maybe I'm seeing things, but I'm noticing a shift in small and medium-sized manufacturers toward cloud enterprise resource planning (ERP). This is crucial because, before 2020, I observed a natural resistance among many in this sector to considering cloud solutions. There are both clear and less obvious causes for this development. I was thankful for the substantial and positive advantages. Users in the enterprise market are starting to reap the rewards of cloud-based technologies. They anticipate that ERP solutions will offer the same advantages.

A quick and affordable way to improve finance, supply chains, sales, marketing, and human resources is through cloud ERP. Before implementing a solution, businesses must choose one that will maximize the advantages of the technology.

To begin, businesses should look for a vendor with substantial experience deploying ERP systems within their sector. Users must be able to get assistance from the cloud ERP supplier or its ecosystem of partners with technology, project management, and innovation. Businesses should be able to ask questions and receive ongoing support from cloud ERP providers to make sure they make the most of the technology.

The Top 5 Benefits of Cloud ERP for Expanding Businesses are Mentioned Below for more Clarity:

  • Covid-19 has demonstrated that hybrid work is feasible, effective, and essential.
  • Platforms for cloud technology are developing, especially in the SMB market.
  • The baby boomers' retirement is quickening the entry of Gen Xers and Millennials into managerial roles.
  • Thanks to improvements in broadband, cloud solutions are now feasible.
  • New methods lessen the uncertainty and danger of potential technological transition.

What is Cloud ERP?

Traditional ERP systems and cloud ERP are comparable. They link many business departments and functions on a single platform, bringing information and business processes together throughout the organization. Companies can save money, time, and space by using cloud ERP, which operates on hardware solely owned and managed by the ERP software provider. Users no longer need to be at their place of employment or use laptops provided by the vendor of the ERP software to enter into the system using a web browser under this paradigm.

Enterprise resource planning (ERP) that uses a cloud platform and is controlled and owned by an ERP software provider is called cloud ERP. The system functions similarly to conventional ERP, but it has the added benefit that businesses can access the program online.

ERP, hosted in the cloud, is the best option for automating crucial business processes like finance. In this era, automation is a primary commercial objective. By offering a single data source, this proactive solution can enhance inventory management and supply chain management.

Growth In Cloud ERP Adoption Manufacturers

Although the industrial industry was first sluggish to adopt cloud-based technologies, this is changing. There are numerous advantages, from improved productivity and process automation to promoting corporate expansion.

While manufacturers are aware of the need to go to the cloud, only 31% of them employ cloud apps, according to recent data. Surprisingly, 84% of respondents say that cloud technology is essential to their business plans. Only 17% of people consider investing in the cloud.

Cloud Manufacturing ERP Adoption is on the Rise in 2021

ERP systems installed on-site may be too stiff to change to meet the changing needs of organizations today. Because older ERP software versions are expensive to replace and challenging to adapt, many firms still use them. They struggle to keep up with shifting business trends as a result.

We have Fewer Capital Resources

It is possible to operate cloud ERP systems without having to buy hardware or engage more IT personnel. This is so because the merchant offers everything. Cloud ERP is frequently less expensive than other alternatives and may run businesses about 30% less than conventional on-premises systems. The monthly membership fee that cloud ERP users pay covers all hardware, software security, updates, maintenance, and any upcoming upgrades. Customers of on-premises systems are responsible for the hardware, security, and an annual charge for support and maintenance.

No Hardware

By outsourcing their ERP vendor, businesses can reduce their hardware expenditures. Enterprise-class servers, cooling, backup, storage, and other pricey hardware are required for on-premises systems. Not to mention how much money this equipment costs in electricity. Only a device with an Internet connection, a web browser, and enough processing power is needed to use cloud ERP. Today's majority of desktops and mobile devices satisfy these requirements.

Get a Free Estimation. Talk to Our Business Manager


The regulations that apply to ERP systems are constantly evolving. For on-premises systems, this could be challenging. Leading cloud ERP providers take proactive measures to adhere to all relevant rules and regulations, including those governing accounting, taxation, and consumer privacy, as well as national and international legislation. Cloud ERP software complies with GAAP, HIPAA, and GDPR. They are automatically updated to allow businesses to comply.

Hybrid Benefits of Cloud ERP

My entire professional life has been devoted to assisting manufacturing companies in using technology. They are late adopters, which is something I've learned from experience. Many owners are well over their 60s and did not grow up with modern technology.

In 2020, several manufacturing businesses were compelled to implement new technology. How wonderfully it worked out shocked them. Remote work was crucial for engineers, supply chain specialists, and salespeople. There was no sky-fall. Employee output was equally as high, if not higher.

The current ERP system was the first issue. These companies were already utilizing Google Workspace and Office 365. It was clear how challenging it was to incorporate the ERP system while working remotely into these goods. Soon, the hunt for an ERP system that was even better would begin.

Read More: Types, Features, and Functions of ERP Modules

Cloud ERP Offers Many Options

We now appear to be among the pioneers of cloud ERP in the manufacturing SMB sector. Compared to the early users of cloud ERP for SMB manufacturing two or three years ago, this is a significant improvement.

When Microsoft unveiled Dynamics 365 Business Central, a cloud ERP software (which Sabre Limited also sells), I observed a significant movement in the industry. This was in addition to the extensive ERP alternatives of well-known companies like SAP, Oracle. Many people believe that Dynamics 365 solutions resemble Microsoft Outlook in appearance. I am opposed.

These small enterprises often have understaffed IT departments with an infrastructure-focused focus. They frequently lack developers and business analysts. They seek a product that is comfortable, simple to use and low maintenance.

In my opinion, Microsoft's SAP solution has prompted IT managers and specialists to learn more about it. They start looking because the cloud industry has many other vendors. The cloud market will soon be a draw for additional vendors.

I've seen more Gen X and millennial manufacturing managers in the past few years than ever before. My observations suggest that practically all millennials and Gen Xers have different expectations when it comes to technology. As a child, they were exposed to computers, smartphones, tablets, the internet, and other forms of technology. They were either introduced to or had experience with subscription services.

Software for smart devices that includes voice and video functionality is necessary for managers. With this technology, managers can access new business opportunities that are not otherwise possible.

Broadband Access to the Internet is More Straightforward

The existence of clouds has never been disputed. Rural areas at the periphery of urban areas are home to a lot of manufacturing. Because internet access is not available everywhere, broadband has moved away from the urban core.

Even if there are still some places that aren't covered, the number of these places has decreased. Broadband access is a significant objective.

Manufacturers might upgrade their internet to make it more cloud-friendly. There are a lot more factors. If they enhance your internet, you could accommodate remote engineering teams or massive file transfers with clients. Whatever the internet speed, it is possible to implement internet-based solutions.

Continuous Training is Ongoing for ERP

Before the Great Recession, almost all ERP projects were executed similarly. They concentrated on modifying and adapting the software for the company. They thought managing change was less effective than customizing something.

While this might be effective for big enterprises, it might not be feasible for smaller ones. They might not share the same professional standards and industry practices. This may lead to significant cost overruns, abandoned projects, and disgruntled teams.

Even if it might work for large businesses, it might not be practical for smaller ones. They might not adhere to the same industry norms and professional standards. Significant cost overruns, canceled projects, and angry teams could result from this.

Customers now want more "beyond the box" thinking due to the modified model. Small business resellers and their workers must get used to this new strategy. Making the ERP work for the client was a philosophy that their personnel, project managers, and others had to get over.

Flexible ERP vendors are possible. These modest jobs may frequently be finished remotely and cost less than $100,000. They don't need to be customized because they are centered on best practices. This makes ERP adoption for businesses that purchase it simpler.

Get a Free Estimation. Talk to Our Business Manager


Although cloud ERP is relatively new to the SMB manufacturing sector, my observations show it is expanding quickly. Changes in the market, such as improved bandwidth and new ERP systems, might be advantageous to small firms. Younger managers are increasingly accustomed to cloud computing, and buyers have caught on to the advantages of working remotely, thanks to Covid-19.

This pattern is anticipated to continue. The fact that this market will keep expanding is terrific news for everyone. Technology is getting better. Businesses increase their knowledge and expertise. It can be deployed more expertly by software developers. It's a never-ending circle.

Compared to conventional ERP systems, cloud ERP solutions are faster and more adaptable. Planning and allocating resources are only two of the critical areas in which cloud ERP solution assist firms in enhancing performance. Cloud ERP solutions have rigorous service level agreements (SLAs), follow set procedures, and provide faster performance with less downtime.

New patches and upgrades are automatically applied to the system by the cloud, increasing productivity and keeping the system up to date. Because they are managed, kept, and safeguarded by professionals, businesses can concentrate on their core skills, enhancing corporate success.

Due to its price, capabilities, and usability, cloud ERP is a preferred option for expanding enterprises. Your business operations become more efficient, and you get a quicker return on investment. The processing of receivables, regulatory reporting, and lean manufacturing cycles can all be done more quickly. The SaaS solution may simply scale along with the expansion of your company.

Cloud ERP systems are faster, easier to use, highly agile, more versatile, safe, and cost-effective. Legacy ERP systems are gradually being replaced by cloud ERP, which is increasingly the option of most enterprises. If you're looking for a cutting-edge, scalable ERP system, cloud ERP is the best option for you.