Traditional ERP systems used by manufacturing companies to manage accounting and floor information requires specialized IT resources to run and maintain system which results into huge capital expenditure due to in-accurate capacity planning. Dynamic marketplace, ever increasing supply chain complexities due to globalization, dispread operations are not makings easier for manufacturing companies.
Benefits of Cloud enablement for Manufacturing
- On demand version of ERP
- High availability – To keep running all operations without failure
- Functionality and flexibility at much lower cost due to pay per use model
- Lower operational costs
- Faster time to market, Quicker deployment and Easy to Use
- Scope of innovation due to increased focus on business rather than resource management and affordability due to lower cost and flexible payment model
- Better collaboration and information sharing which provides visibility into every aspect of supply chain
- Analytics-Access to the necessary information to inform decision making
- Easy upgrades
- Visibility to the vendors operations (purchase orders) in its own IT landscape – Hybrid Cloud to connect vendors and suppliers.
- Cloud computing, Mobilizing of IT applications, will help to collect real-time data from potentially any asset along the value chain.
Disadvantages of Cloud enablement for Manufacturing
- Security, reliability and customization
- Compliance to industry standards for security and provide adequate service-level agreements in manufacturing industry
- Customization challenges: Same instance of cloud computing software is shared among customers