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Why Manufacturing Companies Should Implement Cloud ERP Software

Modern cloud ERP solutions can help manufacturers deliver better customer experiences, gain visibility into operations, and build resilient supply chains.

Inside a manufacturing facility

If you’re in the manufacturing space, you know that the demands on manufacturers are much greater today than before. Your customers want better quality products at lower costs that are shipped quickly and cheaply. They also want excellent service, such as convenient deliveries to effortless return policies. In order to meet these demands, you need to optimize your processes for speed and efficiency.

This is precisely where having technology such as cloud enterprise resource planning (ERP) is a significant advantage. Modern cloud ERP solutions can help manufacturers deliver better customer experiences, gain insight into operations, respond to flexibility, and build a resilient supply chain.

For the last decade, and especially in the past few years, we’ve seen the rapid growth of cloud computing and a push toward more connected businesses. Cloud ERP has several benefits for businesses of all sizes. As more manufacturers switch to cloud ERP, manufacturing is quickly transforming into a highly connected, intelligent, and more productive industry. In this article, we look at how leading cloud ERP solutions like Microsoft Dynamics 365 will benefit manufacturing organizations.

📊 Unified Data: The No. 1 Benefit of Cloud ERP for Manufacturers

Thanks to cloud computing, manufacturing businesses can tear down data silos and have all their company’s data in one central database that can easily share and receive information across the company in real-time. All of your company’s different departments, from financials, operations, manufacturing, customer service, sales, and more, are unified under one platform in the cloud.

This allows you to gain visibility into the performance and operations of the company in real-time. With a complete overview, it’s easier to make smarter business decisions a lot faster. Unified data also brings opportunities to other departments. For instance, companies can track a customer’s journey at multiple touchpoints across your brand. Financial reporting is likely to improve by becoming faster and more accurate. By combining unified data with powerful tools such as Microsoft Power BI, you can gain valuable insights into your business.

Visibility also translates into improved forecasting. Your company’s ability to identify trends and correlations increases, allowing you to shift strategies quickly as needed. Increased visibility also means the ability to mitigate risks earlier – either because you can recognize operational issues quicker or because outlying data raises red flags.

Unified data makes it easier to implement artificial intelligence capabilities in your organization. As you unify data from across the company, you have a more comprehensive and accurate data set that provides better analysis and allows AI tools to uncover connections and trends. For example, modern cloud ERP solutions like Dynamics 365 Business Central offer a range of built-in AI capabilities. Unified data also allows your company to employ intelligent automation, streamline your processes, and automate your workflows.

A worker in a hardhat and hi-vis vest talking on a radio and taking notes next to a large machine

More Advantages of Cloud ERP for Manufacturers

✨ Lower operating costs

Cloud ERP reduces your overhead expenses. If you’re currently using an on-premises solution, the difference in cost savings is likely to be quite significant. As cloud ERP solutions do not require complex IT infrastructure, you save time and money on hardware and maintenance. Updates become inexpensive as well, as the solution provider handles them.

✨ Increased scalability and agility

Cloud ERP solution can help your manufacturing company scale extremely easily and much more quickly than compared to an on-premises ERP solution. This is because there is no need for investment in infrastructure and hardware with a cloud ERP solution. It’s easier to integrate new functionality as required as well. For example, with Microsoft Dynamics 365, manufacturers have the flexibility to deploy how and where they want, leverage extensions to quickly add new capabilities, and easily manage system updates and new features across the organization.

✨ Improved production planning

Manufacturers must continuously track their internal data, such as inventory levels and variations in product demand, to ensure the right products are available and ready for shipping when needed. Demand fluctuations due to changes in customer requirements or other conditions can create production planning and scheduling complexities. By using machine learning, manufacturers can create digital systems that learn from these fluctuations and dynamically alter production processes to accommodate new requests.

✨ Resilient supply chain

A resilient supply chain is one that can withstand the impact of both short-term and long-term disruptions, recover quickly, and meet business obligations without significant impact on service levels. Cloud ERP goes a long way in making your supply chain more agile and resilient.

✨ Predictive maintenance

As manufacturing companies wage a constant battle to achieve high product quality, low defect rates, and on-time delivery, the pressure can cause manufacturers to run their machinery to failure. Unplanned equipment downtime can cost a lot, which is why maintenance is a critical factor in gaining a competitive edge. Thanks to cloud ERP, predictive maintenance uses intelligent sensors on factory equipment to monitor performance. The data generated can be used to predict future malfunctions and maintenance needs, and scheduling algorithms can help plan for the least amount of disruption.

✨ Enterprise-level security

Modern cloud ERP solutions come with high levels of data security and compliance. Compared to on-premises solutions, where the onus of data protection and cybersecurity falls solely on your company, with a cloud ERP solution, the responsibility is shared with your cloud vendor. This means you have access to enterprise-level security and compliance capabilities that your company is not likely able to achieve on its own.


Manufacturers are turning to cloud ERP to improve operational efficiencies, reduce waste, and support lean production initiatives. In a nutshell, these are the advantages of cloud ERP for manufacturers:

  • Improved and accurate forecasts and insights

  • Complete visibility into operations and performance

  • Better and faster strategic decision making

  • Improved financial reporting and analysis

  • Streamlined operations and processes

  • Lower operating costs

  • Ability to scale with ease

  • Pivot and adapt easily

  • And more!

Empower Your Business With a Cloud ERP Manufacturing Solution ✅

Whether you’re looking at your first cloud ERP solution or are ready to move from your on-premises ERP to the cloud, the Kwixand Solutions team is here for you. Based in Vancouver, Canada, we are a Microsoft Dynamics 365 Partner, and ERP consultancy that helps businesses across Canada and the US digitally transform and achieve their long-term business goals. Book a free consultation with us today or get in touch directly at or 1-604-256-5800

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Source: Top eight trends every COO should know about the future of manufacturing, Microsoft Dynamics 365


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