How to Choose the Right Cloud-Based ERP Software for Your Business?

By Team TranZact | Published on Mar 10, 2024

Many manufacturing businesses use cloud based ERP software to increase their productivity. This technology helps them to integrate their data and various departments onto a single platform. If you are also planning to implement cloud ERP software in your manufacturing business, you must choose the right one.

In this blog post, we will understand every aspect of cloud ERP software to help you choose the right ERP system according to your needs.

What Is Cloud Based ERP Software?

A cloud-based enterprise resource planning software (ERP) allows you to put together different parts of your business, whether it’s inventory or procurement, all in one place. With this software, you can see your important business information from anywhere and manage it from any device with internet access.

Why Do You Need A Cloud ERP Software?

When you want to increase productivity and ultimately profit for your manufacturing business, an enterprise resource planning system can be very helpful. A cloud ERP system gives you the flexibility to manage your business from different locations. Cloud-based ERP solutions can be cost-effective because you don’t need to install hardware or servers in your business location.

Your ERP vendor will also provide regular updates to the software and take care of security measures. Cloud based ERP for small business is helpful to collaborate with teams and increase productivity and revenue.

Key Benefits Of Integrating Cloud Based ERP System

The main reason for integrating cloud based ERP software in businesses is that it is cost-saving and can boost productivity. Here, we will explore the key benefits of integrating a cloud-based ERP system into your manufacturing business.

1. Increased Flexibility

You get the flexibility to manage everything. You can customize this software by adding features according to your business needs. It will allow your employees to communicate and work together to improve their tasks and efficiency. If your sales go up or down, you can adjust your ERP software smoothly. Additionally, if your team gets bigger, a cloud based ERP system can handle more features and tasks without any trouble.

2. Real-Time Access

It will keep you informed about all the operations (tasks). You can check out key data from any location to manage different tasks. You can also connect it to your mobile devices with just an internet connection. You get real-time access to data and operations in your business. For example, if you install a cloud based manufacturing ERP software, it will help you notice delays or problems down the line, and you can take immediate action to manage them without sitting in front of your desk.

3. Integration

Can be very helpful if you have many manufacturing units in different places. Your employees from different locations can work together with the help of a cloud ERP system. They can share important information to make smart and accurate decisions for your business.

4. Easy Installation

When you want to install a cloud based ERP system for small businesses, you can simply contact a reliable service provider. You don’t need to install any hardware and other equipment in your business location or depend on the IT team. You just have to choose the best company to get the cost-effective cloud based ERP software for your business.

5. Up to date

Your vendor will also take care of its maintenance. Further, you don’t have to worry about upgrading the software because your vendor will regularly update it with the latest technology. This way, you can focus on the core tasks of your business to increase overall productivity.

Key Success Factors To Choosing The Right Cloud ERP Software For Your Small Businesses

Regardless of your team size, it is always important to choose the right cloud ERP solution that gives you better ROI (Return On Investment). So, if your business is small, then you can get a cloud based ERP software with fewer functions and features. You can also customize the ERP system according to your specific needs. Let’s go through some key factors to choose the right cloud ERP software.

1. Identify Goals

When you want to go for cloud ERP implementation in your company, figure out what is working well and what can be better. You should also look for a system that comes in components in your business. An additional feature these tools offer is integration. You can integrate them with tools like Tally, Aftership, and Excel. Analyze which departments of your business will use it the most and how they will share information and choose accordingly.

2. Analyze Options

Small businesses often face difficulties with traditional ERP when they want to access some advanced features. So, they opt for cloud based ERP software because it can be customized according to their specific needs. Choosing a cloud ERP system that allows you to add or remove features easily is important if you plan to change or grow your business.

3. Research Vendors

The effectiveness of your cloud based ERP software depends on your vendor. It is necessary to know everything about your vendor for trust and high-quality service. You should shortlist the best cloud ERP vendor and check how well they have worked with other companies like yours before choosing. Look at the experience and number of customers the vendor worked with within your industry. You can also read their customer’s reviews and compare the price from other vendors.

4. Data Security

When you are upgrading your business with the new technology, data breaches can be a concern. Your employees' profiles, business deals, legal documentation, contracts, and many other things are the important assets of your company. If you have decided to go for a cloud-based ERP solution, you must know the data security policy of your vendor. You should ask them how they are going to deal with keeping all your important details out of reach from hackers and other cyber threats.

5. Compare Prices

The price for the cloud based ERP software can vary according to your specific requirements. Vendors can offer different prices based on the features, duration, and other functions they are offering to you with cloud-based ERP software. You must compare prices and features of the ERP system with several vendors and choose the one that is giving you the best offer.

Read more : ERP software selection criteria

Maximize Efficiency With TranZact: Your Cloud ERP Solution Partner

Cloud based ERP software can be a game-changer for manufacturing businesses. They offer a complete solution that can manage all kinds of operational tasks. However, for small to medium-sized businesses, not all features of a traditional ERP might be necessary. The downside of a conventional ERP for small businesses is its lack of flexibility. It is an all-or-nothing package with no option for customization.

Here, software like TranZact can be the best cloud based ERP for small businesses. TranZact is a versatile solution designed to help with the specific needs of manufacturing businesses. It offers customizable modules, which you can pick and choose based on what you need. TranZact could be the perfect fit for your business operations. It is software that adapts to your business and makes sure that you get smooth day-to-day operations.

FAQs

1. What is cloud ERP software?

Cloud ERP software allows you to manage all data and operations from anywhere and anytime. Cloud-based ERP software provides online solutions to run businesses more smoothly at lower investments.

2. What are the selection criteria for ERP systems?

Identify the problems at your business that need to be managed well.
Identify your business goals and the features required in ERP systems.
Analyze customization options of ERP systems
Shortlist some reliable ERP vendors and ask for quotations.
Cross-check the features and security policies.
Compare ERP software prices and close the deals with proper documentation.

3. What is the difference between ERP and cloud ERP?

You have to install hardware and servers at your business locations to use the facility of on-premise or traditional ERP. On the other hand, Cloud ERP is a cost-saving solution that is hosted and managed by third-party vendors.

4. Is cloud based ERP safe?

Yes! The cloud based ERP software is equipped with advanced security measures to protect businesses’ data and critical information for enhanced security.

5. Why is Cloud ERP better?

Comes with no initial investment cost
Cloud ERP software is affordable
Available to use on a subscription basis
Highly customization features
You can remotely access the data
Full support from the vendor
Easy to access and manage.

6. What are the benefits of Cloud-based ERP systems for SMEs?

Keep transparency within the team
Allows your team to work together with shared access
Help you boost business productivity
Saves you a huge cost on ERP solution
You can access real-time data from mobile devices
Connect all your branches at a place
Easy and fast setup process
Maintainance is done by third-party vendors

7. Why is customization important in a cloud-based ERP system?

Every business has its requirements. Cloud-based ERP comes with highly customized features tailored to industry-specific usage. Cloud ERP offers a customized dashboard, flexible integration, user accessibility, and much more to help you align business processes.