Cloud ERP’s relevance in the manufacturing industry

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Over the last three years, manufacturers all over the world have had to shift their focus dramatically from efficiency to resiliency in order to weather unprecedented global events, such as the COVID-19 pandemic and the war in Ukraine. 

The wake of the pandemic accelerated the movement of manufacturing applications to the cloud. However, the shift towards digital transformation preceded the wake of these disruptions and continues to evolve as more and more manufacturing leaders embrace the benefits of Cloud ERP. 

How could ERP software help a manufacturing company?

Indeed, manufacturing is a cornerstone of the global economy but it is also known to be a relatively conservative industry, where change can sometimes come around slowly. 

The industry has lagged behind other industries in terms of moving its legacy operational technology to a cloud-based environment. 

However, manufacturing executives all over the globe are increasingly beginning to understand the magnitude of benefits SaaS ERP has to offer and are taking a strategic approach to tap into these capabilities and transform their organisations. 

A recent webinar hosted by Harvard Business Review (HBR) Analytics Services and SAP highlighted how embracing software-as-a-service (SaaS) enterprise resource planning (ERP) can help manufacturers drive efficiency and gain better insights into their operations. 

Alex Clemente, managing director for HBR Analytics Services, emphasised the significance of having effective, real-time data in satisfying customer demands, as well as top-line and bottom-line financial targets. 

Clemente also touched on the capabilities of a consumption-based tech model to create more accurate planning and cut the materials supply delivery gap from months to just weeks. 

“And also by having superior visibility across the spectrum—from supply inventory and demands for businesses— manufacturers can better plan for cash flow and requirements for suppliers,” Clemente said. “The information flow that this cloud ERP allows has a very direct impact on the materials flow.“

In an upcoming report, titled “Cloud ERP Transforms Manufacturing,” SAP and HBR Analytics Services will dive into how companies in the automotive, high-tech and construction industries have weathered the storms of the global pandemic, disruptions in the supply chain, and skills shortages in the industry.