Cloud Based ERP Software for Small Businesses

11/12/21 10:30 AM

No manufacturing process is perfect. Every floor or operations manager understands the reality of constraints within a system. Enterprise Resource Planning helps you identify the limitations of your process, and, following the theory of constraints (TOC), helps you restructure around them.

Cloud Based ERP for Small Businesses

ERP as a SaaS

ERP has changed by leaps and bounds since it first came into play over 20 years ago. ERP software companies increasingly seek to provide organizations with a more flexible business transformation. Cloud-based ERP (software-as-a-service) makes your system accessible from anywhere with a WiFi signal.

Small to medium-sized businesses can take advantage of the flexible and cost-effective nature of cloud ERP. Such software offers extensive freedoms for growth and expansion. These include:

  • Freedom to scale and grow: Lowered flat-fee prices and total costs for businesses.
  • Freedom from IT constraints: Offers privacy and high-level security in congruence with ease in accessibility and integration.
  • Freedom from lock-in: Transferable data at any time.
  • Freedom to innovate: Keep up to date with continuous new features and functions.

The accessibility and ease of integration of Cloud ERP help manufacturers identify constraints within their process.

Types of Constraints

ERP Software Cloud Based for Small Manufacturers By definition, a constraint prevents a system from achieving its goal. A core principle within the TOC is that there are at most only a few in a given system. ERP serves to identify the types of internal constraints within a manufacturing process:

  • Equipment: the manner in which equipment is used limits the ability of the system to produce more goods/services.
  • People: a lack of skilled labor limits the system.
  • Policy: a written or unwritten policy prevents the system from maximizing production.

These constraints prevent an organization from attaining additional throughput (revenue from sales) even when nothing goes wrong. ERP integrates into your process and identifies what constraints are holding back an organization. With this accrued knowledge, operations and floor managers are better equipped with the knowledge necessary to increase a plant’s production efficiency.

Why Cloud Computing Matters

Cloud-based ERP software provides application scalability and reduced hardware costs; a sizable benefit to manufacturers. It’s a great model for facilities who want to acquire ERP software without needing to manage hardware, software, and upgrades while reducing up-front costs. Operations managers can also build an internal cloud to further reduce hardware cost and maintenance. It also enhances their control over integration and protects their data server.

Cloud-based ERP enhances transparency and accountability within your facility and the freedom to access the software remotely. Stay on top of your production process and any changes that may arise on the fly. It’ll enhance your productivity and efficiency across the board.

See how APS can benefit your cloud-based ERP system through simple integration and various capabilities here

Related Constraints Selection Video

 APS Resources

Topics: Advanced Planning and Scheduling, PlanetTogether, Implementation, APS, constraint, theory of constraints, software


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