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Is Cloud ERP for Manufacturing feasible for SME’s?

Cloud ERP for manufacturing can be widely accepted by small businesses to drive production efficiency and timely shipment.

However micro and small businesses often neglects it on costs factor and chain of operations to drive the system.

Well the reasons may vary from one industry to another

But manufacturing isn’t an easy process as enormous resources are involved in production.

Keeping track of each and every resources are not viable for any enterprises and  more specifically the growing enterprises.

Talking about how Cloud ERP for Manufacturing can be feasible is a matter of concern for most of today’s manufacturing business


Is it feasible?

The complexity of production and the number of processes that comes along the line of product development is a time consuming process.

Capturing each and every processes are not viable for small businesses.

If you don’t have an automated system, going for an automation will be the right platform.

And that drives manufacturing efficiency and timely delivery

This also keeps yourself away from chaos on plant due to jobs overloading on machines and/or workers.

Manufacturing is the core of every businesses, and we all know timely manufacturing leads to timely delivery.

So in order to drive efficiency you should have a total control over your Shop Floor.

This can provide you with valuable insights on the ongoing jobs, released jobs, time lapsed on jobs, delayed jobs, completed jobs and so on.

In order to optimize your jobs, a shop control panel can guide you through timely allocation of jobs.

Allocation of jobs on a particular machine/worker at the right time shall neither overload the machines nor the workers.

Thus giving your workers the time to complete jobs on timely manner without the need to expedite the processes.

When we talk about manufacturing efficiency, it is not just limited to inventory inputs, capital, machinery and manpower.

But also concerned with jobs allocation on timely intervals.

Timely completion of all components manufacturing with respective to required job days is crucial

So job receipts done on timely interval to streamline further job chains, is a complete process that can well be handled with cloud ERP for manufacturing.

Managing jobs and shop floors in a plant can only become feasible if the core manufacturing workflow phases gets stronger

And this can only become better through lean manufacturing practices and refinement of inputs over time.


So lets look at the core workflow phases involved in Cloud ERP for manufacturing.

Bill of Manufacturing

Inventory Management

Manufacturing Sales Order

Custom Manufacturing – Engineer to Order (ETO)

Material Requirement Planning (MRP)

Manufacturing Purchase Order

Shop Floor Control – Manufacturing Execution System (MES)

Product Costing

Manufacturing Accounting


The above workflows are core to every manufacturing, so how does a Cloud ERP for Manufacturing make it feasible.

The answer to this question is the  “Just in Time” manufacturing.

The concept is based on “Pull type” which means Make To Order in which the production is based on actual demand.

And rather than “Push type” which means Make to Stock in which the production is not based on actual demand.

Any small manufacturing business can easily emulate Toyota’s just in time philosophy.

As a manufacturer you will provide customers with rapid time to shipment while keeping inventory and WIP to a minimum.

So you must implement Cloud ERP for Manufacturing with full functional MRP  to get the platform you need for “just in time” planning and execution.

Second, you must commit to using Manufacturing principles prescribed by software.

Principles like Rapid Time to Shipment, Lean Inventory, Just in Time Scheduling, Prioritized Production and Efficient Costing etc

JIT Manufacturing replaces inefficient manual planning methods with a just in time system that boosts your manufacturing efficiency.

It reduces time to shipment with strategic planning settings.

And keeps inventory lean with dynamic reorder points, sales order ship dates, generate jobs and purchase orders just in time.

It also releases jobs to live production with material availability and boosts shop productivity with job prioritization.

Any small business can use Cloud ERP for manufacturing to dramatically boost manufacturing efficiency with a process workflow scaled for smaller companies.


Benefits of Cloud ERP for manufacturing for Small Business

Cloud Manufacturing for small businesses is simple and is based on simple methods.

And can be applied by any small manufacturing business.

It also provides flexible and lesser transactions and workflows while retaining the vital elements of production processes and inventory.

Cloud ERP for manufacturing in accordance with the prescribed methods are far easier compared to traditional planning and shop control methods.

So it is much easier to plan shipment in advance using lead time allocations.

And Plan for stock using dynamically calculated reorder points.

Generate Work Orders and POs triggered by actual net demand.

Also generate a master job and PO schedule where supply dates align with demand dates.

And release jobs to production based on material availability.

Meet required dates by running work center job sequences in job priority order.

And update material usage and sequence completions in real time for workers.

Use calculated shop rates for labor and overhead and absorption costing.

And operate by sharing time to shipment objectives and production priorities with sales people, shop floor supervisors, manager, and even customers.



Cloud based ERP for manufacturing are increasingly on demand these days, because of it low upfront cost

The Cloud model enables small business pricing and pay as you use.

Also Cloud ERP for manufacturing is feasible for small businesses without complication

And it’s simple workflow processes makes it best at ease of using.

It also takes less time for implementation with ease and no accounting conversion at shop floor.


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