More and more businesses — including distribution companies — are adopting cloud-based ERP systems. In fact, experts predict that between 2016 and 2022, the global cloud ERP market will increase at an eight percent compound annual growth rate — or CAGR — to a total of $28.8 billion. So what exactly are the benefits of a cloud-based ERP system compared to an onsite solution?
- It’s much more cost-efficient: In one survey, more than half of all respondents reported that they experienced a cost savings of 20% or more by implementing cloud technology. This gain is because cloud-based ERPs are usually provided in the form of Software as a Service — or SaaS. Since both the servers and the software needed to run the application are offered by the provider, you don’t have to invest in expensive hardware — nor in additional space to house the servers.
- It’s quicker to implement: Because the entire solution is hosted in the cloud, you only have to create your account to access it. It doesn’t involve any complicated configurations of your own hardware onsite. Instead, you can set your preferences and adapt the solution with a few simple clicks.
- You get automatic updates and upgrades: With an onsite solution, you have to download updates and have your IT team install them. This process usually requires being offline for a certain amount of time — which can cost your company revenue. Moreover, if you need to upgrade to a newer version, you frequently have to pay. But with a cloud-based solution, the provider is constantly looking for ways to improve the system and automatically pushes any updates and upgrades through.
- It provides excellent accessibility: Because the solution is based in the cloud, you get anytime, anywhere access. This functionality is especially useful if you have multiple locations, as well as when your employees are working remotely. And since the system automatically updates all data in real time, errors due to a lack of synchronization are eliminated.
- It’s scalable: With a cloud-based ERP, you can scale your system up or down as needed — all you have to do is increase or decrease the number of user licenses you have.
- It provides cutting-edge security: Your provider is responsible for the security of the ERP’s infrastructure and application, so it ensures that your system is always protected by the best possible security solution. And since the provider’s IT team handles the security, your own IT department is freed up to focus on different matters.
- A cloud-based ERP’s business continuity capabilities are much more robust: Your provider will have a contingency plan ready in the event of a disaster, so you’ll be able to continue operations without any downtime.
- It can be integrated with other cloud-based systems: Depending on your business’s specific needs, you can integrate the solution with other applications, as well as suppliers’ and other business partners’ systems.
Selecting the Right Cloud ERP Software
Clearly, when compared to an onsite solution, cloud ERP software offers a significant number of important benefits for your distribution company. Nevertheless, it’s critical to select the right application for your business — one that meets all of your requirements regarding cost, capabilities, security and integration options. At Clients First Business Solutions, we make it our business to help companies like yours find the solution they need. Contact us for more information.