Cloud ERP in Small Manufacturing Businesses

The manufacturing industry is in a constant state of evolution, with businesses striving to stay competitive and efficient. One critical factor for success is implementing the right ERP (Enterprise Resource Planning) system, especially for small and mid-sized businesses operating on limited budgets.

Today, my emphasis is on the best cloud manufacturing ERP for small business – platforms that combine affordability, scalability, and advanced functionality.

What Defines a Small Business ERP?

Small Business ERP systems, sometimes referred to as “Mid-Market ERP,” cater to entry-level ERP customers. Unlike larger enterprise solutions that can cost over a million dollars to implement, these systems are designed to stay under $250,000 USD in the first year. They are accessible, efficient, and provide the robust tools necessary to support growth.

Key criteria for a Cloud ERP include:

1. Browser or thin-client accessibility: it works seamlessly on PCs, mobile devices, and tablets.
2. Vendor-hosted and serverless infrastructure: there is no need for on-premises servers.
3. App Marketplace: there is a platform where 3^rd-party applications can integrate easily.
4. Automatic upgrades: there are regular updates that will not cause a disruption to your business operations.

Why Avoid an On-Premises ERP?

While on-premise ERP systems have historically been the backbone of enterprise operations, they have many limitations in today’s fast-paced, digitally connected world. These challenges can cause lag, hinder your business growth, reduce your operational efficiency, and increase costs over time. 

Limited Accessibility

On-premise ERP systems are tied to local hardware and networks, making remote work and collaboration difficult. Employees need VPNs or other complex setups to access the system outside the office, which can be slow and unreliable. For companies with multiple locations or global operations, this lack of accessibility creates bottlenecks, delays decision-making, and reduces overall productivity. 

Scalability Issues

Scaling an on-premise ERP to meet the needs of a growing business is costly and time-consuming. Expanding requires purchasing additional servers, increasing your storage capacity, and upgrading hardware – all of which demand a lot of investment. Furthermore, software upgrades often require system downtime, IT support, and extensive planning, which can disrupt operations. 

Integration Problems

On-premise systems often struggle to integrate with modern business tools such as customer relationship management (CRM) systems and eCommerce platforms. This lack of compatibility can lead to isolated data silos that make it difficult to streamline workflows or gain insights across departments. When integrations are possible, they can involve expensive custom development and ongoing maintenance to ensure compatibility with updates or changes in connected systems.

Cloud ERP is the Solution to On-Premise Issues

Unlike on-premise systems, Cloud ERP platforms are designed to overcome these challenges. They offer seamless integration capabilities, allowing you to connect your ERP with other tools and systems effortlessly. Remote accessibility is built-in, allowing your employees to collaborate and access data from anywhere. Furthermore, scalability is not a concern with Cloud ERP. You can expand or adjust your usage without investing in additional hardware or infrastructure.

The modern business demands flexibility, efficiency, and connectivity – qualities that on-premise ERP systems struggle to provide. Transitioning to a Cloud ERP is not just an upgrade but a necessary shift for your business to stay competitive and agile.

Top Cloud ERP Solutions for Small Manufacturing Businesses

Selecting the right Cloud ERP system is extremely important for small manufacturing businesses aiming to streamline operations, enhance efficiency, and support growth. The following ERP systems stand out due to their functionality, scalability, and cost-effectiveness.

Microsoft Dynamics 365 Business Central

Microsoft Dynamics 365 Business Central is designed with small and mid-sized manufacturers in mind. With tools for managing finances, supply chains, and inventory, it provides end-to-end visibility across operations. The system excels in multi-location tracking, enabling manufacturers to trace inventory with precision using serial and lot numbers.

Advanced production planning features, such as capacity planning and demand forecasting, help optimize workflows and boost efficiency. The integration of business intelligence tools ensures that data-driven insights are readily available for strategic decision-making.

Fully cloud-based, Business Central delivers seamless updates, accessibility across devices, and compatibility with third-party applications, making it a top choice for manufacturers.

Learn more about Microsoft Dynamics manufacturing.

Acumatica ERP

Acumatica is a flexible and scalable ERP solution designed to grow with businesses of all sizes. It offers industry-specific editions for manufacturers, ensuring access to the most relevant features without unnecessary complexity.

The system simplifies inventory and order management while enhancing field service operations, creating a seamless workflow from procurement to production. Its modular design and scalable pricing model make Acumatica an accessible option for small businesses, while its adaptability ensures it can scale alongside growth.

For manufacturers seeking a cost-effective solution with robust functionality, Acumatica is an excellent choice.

NetSuite ERP

NetSuite, a cloud-based solution from Oracle, is highly regarded for its ability to manage complex manufacturing processes. Its production management tools streamline workflows and improve inventory tracking, ensuring smooth operations.

For manufacturers with global ambitions, NetSuite supports multi-entity and multi-currency management, making international business operations straightforward. The platform also provides advanced supply chain tools, simplifying procurement, warehousing, and distribution.

With its depth of functionality and scalability, NetSuite is well-suited for manufacturers looking to handle intricate supply chains and operational challenges.

Finding the Right Fit

Each of these Cloud ERP solutions offers unique strengths tailored to the demands of small and mid-sized manufacturers. Microsoft Dynamics 365 Business Central stands out for its advanced planning and business intelligence tools, while Acumatica provides flexibility and cost-effective scalability. NetSuite is ideal for manufacturers navigating complex global operations, and SAP Business One offers adaptability for varied manufacturing processes.

By transitioning to a Cloud ERP system, manufacturers can improve efficiency, enhance collaboration, and position themselves for sustained growth in a competitive market.

At Sabre Limited, we specialize in manufacturing solutions and are proud to be among the top Microsoft Dynamics manufacturing partners in North America. Our approach is unique: we offer fixed-fee pricing to eliminate unexpected costs, and we are fully committed to prioritizing our clients’ needs. For fixed-fee implementations and license pricing, read my Business Central Pricing Guide.

If you enjoyed this article and would like to talk to Sabre Limited’s president Rob Jolliffe to chat about these concepts, you can book a one-on-one 30-minute call with him at https://calendly.com/robert-jolliffe/30min