
What Mid-Market Manufacturers Should Look for in a Cloud ERP to Support Rapid Growth
Your old backend system worked when the business was small, but now it is holding you back.
As mid-market manufacturers experience rapid growth, they need an enterprise resource planning system (ERP) that can evolve from basic operational support into a strategic tool for growth. A modern cloud ERP should not only streamline operations today but also create the foundation for long-term agility, efficiency, and data-driven decision-making as the business grows.
The good news is that you have several options to consider as you contemplate an ERP upgrade. But not all ERP solutions are created equal, so you should focus on a few specific areas during evaluation.
Key ERP Considerations for Mid-Market Manufacturers
When looking at your ERP options, there are at least eight key factors you should consider as a fast-growing mid-market manufacturer.
Real-time visibility. Mid-market manufacturers need full, real-time visibility for all aspects of production, inventory, supply chain management and financials. The right ERP solution will capture manufacturing dynamics in real time and enable both an automated response and notifications when something is out of line.
Scalability. Your system of choice should scale with your business as it grows and empower manufacturing expansion across locations, product lines and markets. While it should meet the needs of your business today without feature bloat, there should be a clear path for expansion and additional functionality later as you grow without the need for a new system.
Industry-specific functionality. Mid-market manufacturers have different needs than a distribution, retail or life sciences business. The right ERP solution will have manufacturing-specific functionality and ideally a prepackaged industry solution for manufacturers so your business can roll out your system faster.
Planning and forecasting heft. All ERP solutions come with reporting and analytical capabilities, but the right ERP solution will have detailed modeling and forecasting capabilities for accurate material resources and production planning as market dynamics shift. These planning and forecasting capabilities should be intuitive and easy to use both for executives and employees tasked with operational management.
Integrated quality management automation. Quality is the life-blood for any mid-market manufacturing operation, so the right ERP solution will help automate the quality management function and reduce manual processes around this crucial aspect of operations. This quality management automation should come integrated by default for greater operational efficiency, not be a separate add-on solution.
Implementation speed. Rolling out ERP company-wide no longer is a painful multi-year process. The right ERP should be something you can roll out in as little as 90 days. If implementation takes longer, you probably haven’t chosen a modern, cloud-based ERP.
Predictable costs. Mid-market manufacturers should look for a system with a clear price tag. While scalability and flexibility are ERP virtues, vague pricing and hidden fees are not. Your growing business needs a clear picture of what rolling out and maintaining the system will cost. Don’t settle for less.
System adaptability. A modern cloud ERP will be modular and extensible so your growing manufacturing operation can pivot, adjust and expand easily. Look for an ERP that doesn’t lock you into specific applications or ways or working, one that can easily be adjusted as technology and business needs change. Ideally you want a system that stresses configuration over customization, and leans heavily on functionality modules that can be added or removed as necessary.
What You Need is SAP Cloud ERP
While there are many options on the market, allow us to suggest one: SAP Cloud ERP for Manufacturing.
A modern cloud ERP pre-configured for the needs of fast-growing mid-market manufacturers, SAP Cloud ERP is a scalable, hosted version of SAP’s flagship S/4HANA ERP that powers some of the world’s most sophisticated manufacturing operations.
Out of the box it comes with all the capabilities a growing a mid-market manufacturer needs, including a digital manufacturing cloud, extended warehouse management, product lifecycle management, and supply chain management. It also has the basics, of course, including robust financial management capabilities, customer relationship management, ecommerce and EDI integration, as well as areas such as human resource management.
Aside from having all that a mid-market manufacturer will need, SAP Cloud ERP for Manufacturing stands out because it is a future-proof solution. It is built around a small ERP core that connects with applications and extensions that provide most functionality. This cutting-edge architecture delivers a high degree of modularity and adaptability so the system can easily expand and change over time without the need for a future migration. When new technologies emerge (artificial intelligence, anyone?) or your business grows, SAP Cloud ERP is right there with you.
Learn more about what SAP Cloud ERP can offer your business, or get answers to your specific questions by contacting one of our experienced consultants. You can reach us by calling (801) 642-0123 or writing info@nbs-us.com. We love talking shop.