Why Moving to the Cloud is the Future of Manufacturing

Andrew Rieser
By Andrew Rieser | President and Co-Founder, Mountain Point
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The benefits of cloud computing in manufacturing are endless, from lowering the cost of production to encouraging innovation. 

The Rise of the Manufacturing Cloud

In a 2017 report, the IDC noted that "Cloud computing is transforming virtually every facet of modern manufacturing — from how companies operate to how they integrate into supply chains and how they design and fabricate products."

The benefits of cloud computing in manufacturing are endless. From lowering the cost of production to encouraging innovation, manufacturers are catching on to the many advantages of these growing technologies. 

Strategic Advantages of Cloud Computing in Manufacturing

Cloud computing for manufacturing makes sense and is receiving such widespread adoption because it offers many key strategic advantages for organizations.

Integrated Systems

Migrating and integrating the various systems of record and engagement associated with the manufacturing process provides unprecedented insight into your business processes. Cloud ERP, CRM, marketing automation, supply chain management, product lifecycle development, and customer service systems can now all be unified within a single manufacturing platform. 

See also: Digital Transformation in Manufacturing: 10 Best Practices

Improved Management Capabilities

Accurately measuring employee productivity has long been one of the most challenging aspects of management within the manufacturing industry. By utilizing labor management applications that track and respond to each step in a manufacturing process, management is able to visualize where production is bottle-necking, and respond in a way that increases output. Francis Li, vice president of Information Technology at Softchoice explains that these applications help production leaders by “revealing employee patterns and offering new solutions to process hiccups.” Cloud technology in this area is not only making it easier to measure employee productivity, it is also providing new insights as to where more employee training on a specific skillset would be beneficial to workflow.

PaaS Simplifies Development & Encourages Innovation

PaaS (Platform as a Service) allows businesses to build custom software on top of a technology platform, such as Salesforce, simplifying application development, deployment, and encouraging innovation. The value of PaaS cannot be overstated as it provides companies a location to create, host, and deploy applications without requiring the energy and expertise to navigate complex servers and databases. Because of this, PaaS eliminates the overhead costs of managing the IT resources necessary for application development. In addition, PaaS speeds up application development and allows companies to focus on creating and utilizing the application itself. 

As manufacturers continue on the path of digital transformation, the use of cloud computing systems including Cloud ERP and cloud-based manufacturing platforms is allowing businesses to build and manage custom applications that ultimately provide new insights and lead to an increase in production.

Topics: Cloud Integration, Cloud Technologies, Manufacturing Cloud, Cloud Migration

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