Cloud-Based ERP vs On-Premise ERP for Manufacturing

3/6/20 10:30 AM

Within any manufacturing facility, it is essential understand which type of ERP software is the best for your facility. When selecting a new enterprise resource planning (ERP) system, one of the most critical factor within the decision making process is whether to deploy an on-premise or in the cloud. Cloud-based ERP systems are becoming ever more prevalent as the utilization of technology has become a necessity for everyday life. In today’s manufacturing industry, most ERP vendors offer a form of cloud deployment, while others have ditched their on-premise offerings completely. Therefore, it is essential to understand the advantages and disadvantages of each of these softwares and ultimately what is the best option for your manufacturing facility. 

Advantages and Disadvantages of Cloud-Based ERP Software 

Cloud-Based ERP can be a far less costly option when compared to an on-premise ERP system. One of the largest concerns behind price is security. Security breaches are a viable concern within many production facilities, which is where many manufacturers believe that on-premise ERP softwares are the safest. This is a common misconception, considering that cloud-based ERP softwares are by far some of the safest softwares available. Since security is such a pressing issues for ERP vendors, they make it their top priority to ensure for top security measures to prevent system breaches. 

Cloud-Based ERP vs On-Premise ERP for Manufacturers

Some of the other advantages pertaining to cloud-based erp include easy mobile accessibility, flexibility, and less customization. All of these processes simply the production process and allow you to have thorough visibility into your operation at your fingertips, at all times. 

Advantages and Disadvantages of On-Premise ERP Software 

Within an on-premise ERP system, there are many of the same features available. However, there are a few differences that make these softwares differ. One of these being that on-premise systems are much simpler to modify. The ability to customize to their specific needs and requirements is paramount for various organizations, especially in niche industries, such as specialized manufacturers. 

On-premise ERPS put more control in the hands of the organization, including the security of data. It’s therefore essential that a business be capable of safeguarding an ERP most sensitive information. One of the most pressing issues of on-premise ERP software includes mobile accessibility. These will often require a third-party client to communicate between a mobile device and the on-premise software. 

It is essential to understand the advantages and drawbacks of these softwares before implementing one or the other. 

A software that can aid with your ERP system is PlanetTogether’s Advanced Planning and Scheduling (APS) Software. Advanced Planning and Scheduling (APS) Software is a must for manufacturing facilities that are seeking to enhance their overall operation and locate areas pertaining to waste, increasing profitability, and ultimately cutting costs. 

Advanced Planning and Scheduling Software 

Advanced Planning and Scheduling (APS) software has become a must for modern-day manufacturing operations due to customer demand for increased product mix and fast delivery combined with downward cost pressures. APS can be quickly integrated with a ERP/MRP software to fill gaps where these system lack planning and scheduling flexibility and accuracy. Advanced Planning and Scheduling (APS) helps planners save time while providing greater agility in updating ever-changing priorities, production schedules, and inventory plans.

  • Create optimized schedules balancing production efficiency and delivery performance
  • Maximize output on bottleneck resources to increase revenue
  • Synchronize supply with demand to reduce inventories
  • Provide company-wide visibility to capacity
  • Enable scenario data-driven decision making

Implementation of Advanced Planning and Scheduling (APS) software will take your manufacturing operations to the next level of production efficiency, taking advantage of the operational data you already have in your ERP.

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Topics: cloud based ERP

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