Cost Benefits of Cloud ERP: Reducing IT Expenses and Increasing ROI

Businesses across the sections are in constant flux. Various factors across the world are disrupting businesses. Instability of governments, coups of people against powers, wars in various parts of the globe, sentiments of economic recession, changing consumer behaviours, tightening regulatory laws are some of these factors.

Amidst such turbulent oceans, sailing the ships of business steadily is challenging for many business owners. Therefore, they want to save their biggest asset in the times of uncertainties and that is Money!

While ERP software helps these business owners to streamline various processes, reduce wastages and optimize resources; in the pursuit of saving costs, they are moving towards a cloud ERP. The cost benefits it serves to business owners and the fast ROI it yields is unmatched.

Let us talk about how it minimizes IT expenses and then discuss its contribution in increasing ROI.

How Does a Cloud ERP Reduce IT Expenses?

Overall cost efficiency-

On-premises ERP systems demand significant capital investment in IT infrastructure, including servers and data centers. In contrast, Cloud ERP software runs on the vendor's servers, with the infrastructure fully owned, managed, and maintained by them. Users of Cloud ERP simply need an internet-enabled device—be it a computer, laptop, or mobile phone—to access the system via RDC or a web URL.

Moreover, Cloud ERP is acquired on subscription basis. This fee covers licence fees, maintenance, upgrades and more. ??Hence, the spending in ERP on cloud is more predictable, sparing monies for better utilization and strategic investments.

Beyond this, cloud-based ERP providers offer higher level of data security, which is a costly affair for a company, if they achieve it individually. Moreover, many a times, in-house IT services fail to match the level of security web ERP providers offer.

Offers Scalability-

Web ERP is offered by the vendor with industry-specific features and capabilities. This leads to minimum implementation time and cost. As business grow, new users can be added, data storage can be increased without much hardware investment.

In terms of functionalities too, a Cloud ERP ensures scalability as it can incorporate new requirements, laws, regulatory compliance needs and more. These can then be brought at user-end through regular updates and upgrades.

Consolidation of systems-

Implementing ERP on Web provides the advantage of synchronized systems. In absence of a cloud ERP, each system works in silo and there is no real time synchronization. Thus, multiple systems are at play which might confuse and consolidating their reports and data can take long time.

On the contrary, with a cloud ERP, all the departments are centralized, systems are consolidated, and a single source of truth flows across the network. This liberates organizations from dependency on various systems and keep data consolidated in some clicks, saving huge time, resources and ultimately costs.

Lower operational costs-

The operational costs of cloud ERP are significantly lower compared to on-premises ERP. With cloud ERP, businesses need fewer in-house IT experts because the service provider handles maintenance, upgrades, backups, and downtime resolution. This means reduced staffing and overhead for managing IT infrastructure.

How does a Cloud ERP Increase ROI?

Faster implementation- Cloud ERP is faster to implement unlike the legacy on premises ERP system. Faster implementation results in lesser waiting time and the organization can start working on the system in relatively shorter period of time, thus yielding faster and increased ROI.

Better supply chains- Talking about manufacturing, supply chain is blood and flesh of manufacturing industry. It starts right from procurement of raw material to the delivery of final products. With web ERP, organizations get real time control over supply chain, which helps in avoiding bottlenecks right when and where they are happening, ensuring better supply chain performances. This streamlined supply chain lowers cost involved, and increases return on investment.

Lower upfront costs- With cloud ERP, organizations pay only for what they use.? Hence, they save on hardware cost, maintenance cost, and upgradation cost. Organizations don’t need to have much IT headcounts to handle typical IT related intricacies, which further lowers the cost. Hence, the overall ROI is achieved can be higher.

Higher productivity- Manual data entry is laborious, time consuming and error prone. Cloud ERP automates manual data entry, removing laborious and time-consuming work and diminishing chances of errors. Moreover, it allows working and accessing information from anywhere at any time. So the team is operational, on fields, at shop floor, on their couch and even on vacations. Hence, workforce can devote more their time in productive and innovative ways.

Also, since the organizations can get real time information and insights of market, they can customize their offerings according to the market demands. This speedy action helps organizations to tap new opportunities and enhance customer satisfaction.

Final thought:

In the dynamic world of business, shifting to Cloud ERP has become first choice of various organizations. The reason behind this is obvious, but organizations must look for a web ERP software which caters to industry-specific needs. Besides, the one that has good experience, impressive track record and is capable to handle intricacies of your specific business.

Talking about process manufacturing, BatchMaster Web ERP is one such Web-based ERP that not only caters to various process manufacturing industries, but has also wide experience of 30 plus years in ERP implementation across the globe.

To know more about it, please feel free to mail us on [email protected] or visit BatchMaster .