Cloud-Based ERP Solutions Are Helping Reshore Manufacturing
American companies are reshoring their manufacturing operations to promote efficiency, improve quality, and reduce costs. Cloud-based enterprise resource planning (ERP) systems can help U.S. factories to achieve these objectives, explains a recent article in Manufacturing.Net. ERP manufacturing software isn’t new, but combining its modular nature with the power of the cloud could strengthen your bottom line.
From sales order processing to shop floor control, ERP systems enable manufacturers to analyze all aspects of operations. Enterprise-level software is integrated, but it’s not monolithic. In other words, an effective ERP solution separates core business functions so that sales personnel enter orders, procurement officers process purchase orders, and production workers record labor and materials.
There are plenty of other ERP features, too. For example, integrated job costing software enables managers to compare estimated to actual costs. Moving a factory from China to Chicago may improve product quality, but what’s the average cost of rework on U.S. soil? Shortening the supply chain can reduce transportation costs, too. Do your plans for a satellite facility in Kentucky put the plant close enough to key customers?
No matter where manufacturing operations are based, it’s essential to remain committed to efficiency, quality, and cost control. Cloud-based ERP systems could work well anywhere, so why would they work any better in the U.S.? Ultimately, that’s not the issue at hand. As the Manufacturing.Net article explains, combining the power of the cloud with ERP modules will enable manufacturers who reshore to maximize their U.S. investments.
Are you a manufacturer who’s thinking about reshoring operations? What types of features would be included in your ideal ERP solution?
April 22, 2020
February 7, 2019