When talking about the manufacturing sector, we often imagine companies that have been in operation for 30 or more years. These companies may still be operating production lines and administrative tasks manually. Yet, in recent years, many large manufacturers have sought to embrace newer technologies in their operations.
There are many reasons for this change of mind. With globalization and an increase of competitors entering the market, manufacturers are looking for the smartest and most cost-effective processes to give them a competitive edge. According to ZDNet, larger enterprises are 10 times more likely to adopt some type of newer technology in their operations in 2020 than smaller manufacturing companies. The type of technology adoption is still up for debate, as manufacturers are looking at everything from artificial intelligence (AI) to additive manufacturing.
One of the main technologies that most manufacturers are familiar with is enterprise resource planning (ERP) solutions. These systems help manufacturers manage their accounting and inventory processes while workers can connect to the necessary data to make smarter business decisions. However, even these systems consist of older legacy programs that were implemented decades ago. The applications are not versatile or interactive enough to keep up with growing business operations, and can actually hinder manufacturers when they want to expand.
While understanding the need to adopt newer technologies, many manufacturers are still risk averse. They worry about the capital costs of the initial implementation of newer applications throughout their enterprises. This issue has prevented them from upgrading to cloud ERP technologies such as NetSuite.
Reasons to Upgrade to a Cloud ERP
So why should manufacturers upgrade their old legacy ERP systems to NetSuite ERP? There are many reasons to pursue this option now so that they can succeed in expanding and growing operations in the future.
Improved Software Integration
With manufacturers seeking out a range of technologies to implement in their assembly lines, having each department using separate applications can be cumbersome. These technologies may not successfully integrate with each other to gather, send, and process data. This problem leads to inaccuracies in work processes and the lack of enterprise-wide collaboration.
With NetSuite, a single ERP system can replace the separate and stand-alone-applications. Data can be accessed over the cloud by those who have authorization. Information is also updated in real-time. Every department is able to track and monitor data changes and modifications that can increase productivity while reducing human errors.
Smarter and More Robust Systems
Older ERP systems require a set of steps that have to be implemented. These steps take up the worker's time. A newer cloud-based ERP eliminates these unnecessary steps. Employees still have access to all of the same automated processes that they have come to enjoy. Yet they also have access to more interactive dashboards, report generation options, and other features that can improve productivity.
Lower Maintenance Costs
Maintaining older legacy systems can be cost inhibitive. When performance issues arise, companies need IT professionals who are versed in the older systems to be able to locate and fix the issue. However, IT professionals are constantly being trained in the latest technologies that are constantly rolled out. It can become more difficult to find the technicians and specialists who are still versed in the older legacy versions. In addition, software and technologies can be retired by their software companies as there are no longer any updates available.
By moving to a newer cloud-based ERP system, a manufacturer can ensure that they are still able to access all the recent integration capabilities and maintenance updates that are available. They can locate a larger pool of technicians and IT specialists who understand and work constantly with the newer software systems. In addition, ERP systems like NetSuite update automatically, saving time and money without overburdening your IT department.
Mobility Options
In the manufacturing sector, employees are constantly on the move from the production lines, warehouse areas, loading docks, and administrative offices. Having unfettered access to necessary data and communication is essential. Older legacy systems simply do not provide mobile options. Workers are required to sit down at a computer to gather and use company information.
Newer technologies such as NetSuite ERP are mobile-friendly. Since the information is accessed over the Internet, any mobile device with browser access can pull the required data any time and at any location. This process improves the worker's productivity as they don't have to go back to the office computer to get the information they need.
ManoByte: Helping Manufactures Stay Competitive
Technologies are constantly being rolled out at an incredible pace. It can become difficult for manufacturers to keep up or know which systems will work best with their operations. Here at ManoByte, we simplify the process by learning more about your company's operations and current software capabilities. Then we offer the right cloud ERP solutions that can leverage these applications to their fullest potential. Let our representatives assist you with ERP implementation so the company can have a smooth transition. Contact us today.
