12090c 12090c Is Cloud the way forward for Manufacturing Industries?
Table of Contents Introduction Challenges in the Manufacturing Industry So how can these Critical Business Imperatives be addressed by the Cloud? Cloud based ERP Solutions SAP Cloud and the Manufacturing Industry Conclusion About Kaar Introduction The global manufacturing industry has been through a significant period of change over the past couple of years and faces substantial challenges due to increased globalization. Customers, partners, suppliers, and employees around the globe require system access, efficient automated processes, and global management. To stay ahead in the global competitive market, manufacturing enterprises need to be agile and flexible while maintaining a high security level and clear business overview. Manufacturers, who are under constant pressure to deliver increased accuracy, speed up processes and capitalize on their internal intelligence and knowledge to make every supplier, distributor and service interaction count. The Manufacturing Industry to in order to survive the competition have to gear up with rapid product lifecycles and short time-to-market schedules. Cloud-based strategies give manufacturing companies the chance to bring their own innate intelligence and knowledge into every sales situation. While on-premise systems could also do this, cloud-based systems were quicker to roll out and easier to customize.
Challenges in the Manufacturing Industry Dealing with faster market reach Globalization has allowed manufacturers move production anywhere in the world in search of materials, expertise, and low labor costs. The result has been the globalization of supply chains, as firms around the world compete for business. But it has also opened them up to fierce competition, when reaching markets faster and taking advantage of accurate and real time information plays a major role. Handling operational and productivity cost Manufacturers are under intense pressure to do more, to do it quickly, and to do it for and with less. Over the years, some of the major costs in the manufacturing industry have increased. In order to sustain a competitive advantage, manufacturers are scrutinizing these cost pressures and looking out for solutions which can cut down these costs. Adapting to different consumer expectations A key to success in the current environment is the ability to anticipate what customers want or require, and then bring that product to market before the competition. Customers are demanding an unprecedented level of control over the market. They expect better service and more information. Improved Inventory Control and Supply Chain Visibility There is a continued requirement to improve inventory control and visibility across their operations. Depending on the type of manufacturing operation and the goods being produced, the manufacturers will need to hold varying levels of inventory, perhaps due to changing seasonal related demand from consumers and markets. Manage risk that arises due to disruption in the Supply Chain Manufacturing enterprises need to be prepared for any disruptions and breakdown of systems which could prove to be costly. Enterprises need to be ready to reduce downtime or breakdowns and look for solutions which can put them back into business. Improve Ecological Footprint Manufacturers face ever increasing demands to reduce their energy use and ecological footprint. Integrating true demand-and-response data into the plant information flow can be a component big help in reducing manufacturing costs.
So how can these Critical Business Imperatives be addressed by the Cloud? Operational and cost productivity Manufacturers need to scale scarce resources in a global value chain to enable the most effective decision making and problem resolution, while at the same time reducing the cost to build and improving profitability. With the cloud, manufacturers can use on-demand services to add capacity for compute and storage resources or use cloud as-a-service capabilities to provide a lowcapital expense method for introducing new applications in the organization. Growth and innovation Manufacturers are seeking ways to bring new ideas to market faster than the competition. From the initial spark of a new idea all the way through the value creation process, manufacturers are seeking ways to enhance the process of moving from idea to product. Using public clouds to collaborate directly with customers is a powerful way to increase customer intimacy and drive meaningful conversations with the customer base, increasing value for the manufacturer, the channel, and the customer. Customer experience Rather than just selling a box, manufacturers need to provide new services in support of the customer for example finding a remote expert for troubleshooting or service, capturing customer insights, or just learning how the product is being applied. With cloud technology to capture consumer reaction, manufacturers can uncover new issues with a product, whether they are operational or design related, providing critical new input to the manufacturer. Risk management As new partners and suppliers join the global ecosystem, manufacturers must concern themselves with protection of intellectual property while ensuring they can cope with disruptions to their supply chain (such as natural disasters). Private clouds provide a secure way to add scalable capacity while also providing a technology platform that can increase business resiliency. Green initiatives Manufacturers face ever increasing demands to reduce their energy use and ecological footprint. Integrating true demand-and-response data into the plant information flow can be a component big help in reducing manufacturing costs. Private clouds provide the core IT infrastructure necessary to gather, process, store, and analyze manufacturing data and enact meaningful changes that can decrease manufacturing costs.
Cloud based ERP Solutions An ERP system provides a real time view of your entire business, all the processes effective planning and decision making. Cloud based ERP is designed for greater flexibility with the option of running your ERP software in the Cloud. Minimized initial investment. On-site ERP solutions require purchasing, housing and maintaining servers, then deploying, configuring, and maintaining the ERP software. The Cloud ERP solution does not require a substantial initial investment. The process of implementing, maintaining, and keeping the solution up to date is the responsibility of the solution provider. Minimized technical staff implication. By eliminating the costs and complexities of installing and integrating additional hardware to support the ERP, enterprises that use cloud-based solutions don t have to hire additional technical staff to support the application on an ongoing basis. Increase ROI of the ERP application investment. Cloud ERP solutions can easily be implemented and integrated faster into the enterprise s dayto-day activity. Increased scalability Cloud ERP systems are easily scalable to meet new business requirements. This benefit is particularly useful for enterprises with specific seasonal activities that need to quickly develop or integrate new functions to meet their business requirements.
Half of the manufacturing companies lowered their IT costs by switching to the cloud, and a further 38% reported better response times to consumer demand thanks to the cloud. SAP Cloud and the Manufacturing Industry The manufacturing software from SAP helps in keeping operations performing at peak efficiency with the flexibility required to quickly adapt to market. SAP Solutions are designed for businesses of any size, and which accelerate innovation, produce high-quality products at high profit margins, and reduce the cost and effort of compliance. Procure-to-Pay Optimize procurement processes, reduce cash-to-cash cycles and cost of goods sold, and get the items you need on your schedule, for the best price, and from reliable sources. Production Planning and Control Run lean manufacturing practices and monitor inventory levels while integrating demand planning and forecasting. You can also control material movement, reduce the costs of exceptions, and accommodate production increases. Product Lifecycle Management Optimize the product lifecycle and accelerate changes to product requirements and production measures. By running our manufacturing solution, you can also improve the productivity of your employees. Shorten Closing Cycles Improve accounting productivity during period-end closings by streamlining processes across business areas, simplifying routine tasks, and standardizing closing cycles. Analytics Get a clear view of customers, suppliers, finances, and business operations with best-practice tools, reports, and analytics. Access ready-to-use financial and operational analytics and built your own reports.
Conclusion Cloud computing could help manufacturing firms adopt the latest technology innovations to improve their processes, supply chain management, CAD/CAM/PLM solutions, research & development, collaboration, plant operations, diagnostics, back office functions like ERP and front office CRM. Cloud computing can offer the latest technology, with deep functionality and flexibility at lower capital and operating cost than the traditional invest, build, operate computing route adopted in manufacturing. It offers the manufacturing sector scalability, reliability, a secure environment, an on-demand computing power, faster upgrades and the latest technology. Cloud computing enables manufacturing collaboration among mobile and remote workers, vendors and other constituents in their supply chain solutions through fast, easy and secure access to data when needed to optimize operations and make data-driven decisions. Use of cloud will help us leapfrog into the future with the best of computing technology, unbridled solutions to innovate and collaborate. So, is the manufacturing sector ready to ride the wave? About Kaar Kaar Technologies, rated at CMMI level 3, is a global consulting firm focused at designing, developing, and deploying the finest ideas and SAP expertise to empower companies in achieving new heights of excellence in today s challenging business landscape. Our combined thrust drawn from the business vision of our leadership team and assimilated SAP capability propels us to partner with our clients in identifying and architecting their business agenda. Being a trusted advisor to clients, we believe in fostering long-term working relationships by exceeding customer expectations. Driven by the steadfast pursuit of excellence, Kaar Technologies exude professionalism and proficiency in all areas of function. Every day we are inspired to impact businesses with original and imaginative approaches and help cultivate tomorrow s breakthroughs. Our Global Offices India l Singapore l Indonesia l China l Saudi Arabia l Qatar l United Arab Emirates l Kuwait l Netherlands Kingdom l United State of America l Canada