Cloud software is well-known for its accessible anytime, anywhere platform. But cloud-based Enterprise Resource Planning (ERP) software offers so much more than easy accessibility. From streamlined collaboration to providing real-time data, cloud ERP systems offer myriad ways to help a business tame costs and deliver products faster.
On the never-ending road of “do more with less,” fully utilizing cloud ERP software is a step in the right direction. Here we discuss the basics of cloud ERP software and show you ways to optimize your ERP for maximum efficiency and agility.
Contents
How does cloud ERP software work?
What is included in cloud ERP software?
Why choose cloud ERP software?
5 tips for optimizing cloud ERP software
Enterprise Resource Planning (ERP) software provides a single, centralized platform that bridges a company’s operations, departments and locations to boost productivity and efficiency. It unites a company’s resources and functions, such as accounting, purchasing and manufacturing, into one system accessible to all.
Cloud ERP software takes those abilities a step further by making all of those functions available via the internet and a web browser. Similar to how you would log in to streaming television, you can log in to cloud ERP from anywhere with an internet connection and accessibility.
Cloud-based ERP software is hosted on a software vendor’s servers and accessed by clients via the internet and a web browser. The software is managed by the vendor, who provides applications, stores customer data and is responsible for security, updates and upgrades. This model is often referred to as Software as a Service (SaaS).
SaaS is different from “traditional,” on-premise solutions where software is installed on a company’s servers and managed by their own IT specialists. With an on-premise ERP, a business licenses the software, and uses its own servers and network to run the software and store data. The company is responsible for maintenance, updates, security and any additional integrations needed.
Generally, all of the same features that are available in standard ERP software are available in cloud-based ERP systems, and then some. The most common applications include:
Basic ERP accounting functions encompass accounts receivable, accounts payable and general ledger functions, allowing organizations to oversee budgets and transactions from a single source. Cloud ERP accounting modules draw data from integrated applications, such as sales and purchasing for greater accuracy and speed. Cloud architecture fosters the ability for analytics tools to provide real-time insight into sales, purchasing, profitability and costs.
Manufacturing ERP applications unify production planning and resource management, so companies can better manage costs while optimizing inventory levels. Manufacturers use ERP modules to set production schedules and allocate material resources using bill of materials and machine utilization. Cloud-based ERP manufacturing systems can automatically link sales orders to jobs, automate job scheduling, link to MRP and provide built-in traceability for reporting and analytics.
ERP sales management applications hone sales workflows for better internal use and customer outcomes, with the goal of increasing revenue. Sales workflows are automatically integrated with related business processes, including accounting and manufacturing.
Cloud ERP purchasing applications enable businesses to manage all purchasing processes from one central system, no matter their location. This includes material requirements planning, PO approval, supplier management and receiving inspections. An integrated ERP enables businesses to monitor purchasing activities and quickly address any issues that arise.
Cloud-based ERP inventory control applications enable organizations to track inventory across locations, using barcoding to quickly capture inventory data. That data is used throughout its lifecycle, from warehouse to production to after-market monitoring.
Cloud ERP inventory applications give businesses real-time insight into inventory levels and can be configured to automatically initiate common inventory management tasks, such as allocate inventory or auto-reorder/manufacture product when it reaches a certain level. Material purchases can be easily monitored and warehouse space optimized with built-in forecasting features.
Why choose cloud ERP software?
By delivering end-to-end functionality through the internet, cloud-based ERP software provides a wealth of opportunities to companies of any size. One of the biggest advantages of using cloud ERP is the cost savings.
Utilizing a cloud-based ERP usually costs about 30 percent less than maintaining an on-premise ERP. The savings stem from multiple factors, the most significant being the ability to avoid costs associated with establishing and maintaining the software and its infrastructure. With cloud ERP, those costs are borne by the vendor, who is responsible for regular maintenance, updates, security and data storage.
With all business operations in one internet-accessible system, cloud ERP platforms provide real-time information and data across all departments and locations. This gives management a comprehensive view of current performance metrics, such as financials, inventory levels and production schedules. In turn, this enables data-driven decision-making and the ability to react with greater agility in the event of market or operational changes.
Cloud-based ERP systems break down silos by centralizing data, allowing teams across different departments and locations to collaborate more efficiently. With a single source of truth, there’s less risk of miscommunication or duplicated efforts. This improves project management and ensures that business units are aligned with overall company goals.
Cloud ERP platforms offer robust security features, including centralized data storage, encryption, secure cloud environments and regular updates to protect against potential threats. Role-based access ensures that only authorized users can access sensitive information, enhancing data security across the organization.
With cloud ERP systems, it is easier for businesses to grow their use of the software according to their needs. The flexible nature of cloud-based software deliveries allows businesses to add or eliminate functions without additional hardware and little interruption to current use.
Because cloud-based ERP software requires minimal upfront preparation, it is relatively easy to implement. While there is always a learning curve with any new software, most SaaS ERP vendors provide training and implementation services that help employee-adoption rates. Implementation services also generally include help with transferring data.
ERP software automates process and creates efficiencies in its own right. That makes it easy to overlook some of its capabilities. Cloud ERP providers regularly update their software, delivering the most current applications and features.
Businesses need to stay on top of new capabilities that come with vendor updates and integrate them into their own operational and overall business goals. Some of the best ways to optimize your cloud ERP follow.
ERP software is designed to make sure you meet business and operational goals as efficiently and cost-effectively as possible. Be sure ERP workflows support established Key Performance Indicators (KPIs) and develop benchmarks that inform progress toward them.
For example, QT9 ERP provides many ways to integrate KPIs, including:
Supplier Management tools that provide real-time supplier insights, track quality, on-time deliveries and more that help staff make informed decisions and strengthen your supply chain.
Dynamic dashboards enable users to create custom fields so that they can track the information that is most important to them. With cloud architecture, all stakeholders get a comprehensive, real-time view of operations.
The Inventory Module can be used to create alerts and automatic reorder points, so you always meet pre-determined inventory levels and can see how much inventory is on hand. Use the system to synchronize available inventory, inventory in transit, reorder quantities and costs.
Implement the MRP Module to create accurate production plans and monitor production needs in real-time, so operations stay on track.
Real-time data available through a cloud ERP can provide impactful improvement opportunities. These metrics can monitor supplier performance to help identify potential bottlenecks, predict equipment maintenance needs, optimize production schedules and help detect manufacturing issues that could need corrective actions.
Help employees understand the full capabilities of your ERP software by providing ongoing training opportunities. Cloud ERP vendors often offer multiple training resources that can be utilized in ways that best fit users, whether its in-person or online. Proper training helps businesses get the most out of their ERP systems and their staff.
Cloud ERP software makes scalability easy, allowing business to add or remove resources as needed. Be sure to consider how ERP applications can be of use to your business now and in the future, and make a plan to implement those features. With cloud ERP, new modules or features can be added without disrupting existing functionality.
Most ERP software helps avoid the burden of working off of multiple, disparate software systems. But many cloud ERP providers offer tailored integrations. QT9 ERP seamlessly integrates with its sister software, QT9 QMS, for cloud-based quality management, including applications such as document control, audit management, and corrective and preventive actions (CAPA) management.