What are the benefits of cloud technology on manufacturing?

Lee House is Vice President at I.B.I.S.Inc..He has an extensive background in Enterprise Resource Planning and Customer Relationship Management. Lee has worked in Sales, Operations and Management functions. He has also incorporated new businesses into old and implemented business improvement, sales, marketing and strategic plans. Lee is a graduate of Georgia Tech and is a Native of Atlanta. He enjoys outdoor activities, spending time with his family and cheering for Georgia Tech.


Computer savvy business leaders are aware of the rewards of cloud computing.

However, for those with subscriptions, the benefits are more obvious since they use cloud hosting, receive monthly updates and spot on technical support all at an affordable price point.

Although the government, education and financial industries bask in the glow of cloud technology, there are certain risks to security and issues with downtime.

Still, cloud computing is desirable to many, as evident by the vast majority of companies who have jumped on board the bandwagon. But does it benefit manufacturers?

Cloud Manufacturing

The existing economic climate impacts all businesses, but such conditions mustn’t be allowed to hamper the pursuit of business growth or expansion. Instead, manufacturers need to look for innovative cost-cutting measures that increase profitability. Cloud computing provides such a solution.

That’s good news for today’s manufacturers who must regularly navigate within a global marketplace with brutal competition. And with an effective cloud Enterprise Resource Planning (ERP) solution in place, a manufacturer has a chance to stand out—to show what makes it superior.

With an updated cloud ERP solution, manufacturing companies are getting a system that integrates all primary business functions within one easily manageable solution (e.g., manufacturing estimating software, financial management, inventory tracking, job shop costing).

In addition, with an ERP solution, companies have the ability to access all information across an entire organisational network – a vital component to maintaining a successful manufacturing operation.

Further, the blend of on-premises ERP with real-time data/reporting of cloud ERP solutions enables companies to quickly receive and utilise data, track orders from global suppliers, and easily share business applications with trading partners.

All of these factors increases automation and efficiency for warehouses and factories.

There is of course the concern with security, yet the concerns with security within public cloud hosting are not as worrisome as many make them out to be and should not prevent a company from making the move to the cloud.

The Rewards of Cloud ERP

Along with the rewards of conventional on-premises ERP, a cloud ERP solution gives speed of connection, social technologies, mobile systems, company exposure, and possible supply-chain alliances.

Research conducted by IDC Manufacturing Insights purports that twenty-five percent of all manufacturers use cloud and another twenty percent are considering it. This may just be an opportunity your organisation should not miss out on.

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