While the common idea of a manufacturing or warehousing business is a large enterprise with lots of equipment and many workers, those in the field know that such companies come in all shapes and sizes. Many large, multi-location manufacturing organizations have grown out of small, single-shop routes and the same is true for storage facilities. Whether a small or midsize business wants to grow and become a market leader or has already carved out a profitable niche, being able to use enterprise resource planning software helps businesses improve operations and increase efficiency.
Access to ERP in previous generations was limited by the costs of these systems. Because they tended to be all-in-one, monolithic structures, older versions of ERP software required significant investment into both the programs themselves as well as supporting infrastructure such as servers. When it came time to install updates or upgrade features, businesses often had to deal with significant downtimes as well as further financial obligations. The continuing development in technology has created more agile systems to meet the needs of organizations, including cloud-based systems and modular ERP such as Microsoft Dynamics NAV.
More flexibility and less cost
By using the cloud to store and transmit information, small and midsize businesses can reduce spending while still using many of the ERP features they want. Tech news site CBR reports that attitudes toward ERP implementation are changing as cloud computing becomes increasingly common, and more smaller organizations may begin using the software. Enterprise Apps Today calls the cloud a necessary component of postmodern ERP and points to the development of cloud-based solutions by many different vendors.
Companies that want to optimize their ERP and reduce spending should consider going a step further and using modular ERP to better align budgetary and operational needs. Because component-based ERP allows organizations to choose specific areas to address, companies can better monitor their financial obligations and avoid having to pay for a system or process that isn't needed. Upgrading is also much simpler and doesn't require the long lead-in periods and downtimes common with traditional ERP. Businesses can include cloud computing components in their ERP systems as well, using modules to take full advantage of this new technology.
Learn how to define your ERP strategy by downloading the white paper entitled "ERP in Manufacturing: Defining the ERP Strategy" from the DMS website today.