Cloud Computing in Manufacturing: Solutions to Stay on Top

distinct challenges that await companies on their technological journey ahead. To be successful, they must increase efficiency, cut costs, invest wisely, attract qualified employees and prioritize streamlined communication to deliver exceptional customer experiences. To achieve these goals and others, manufacturers utilize a variety of solutions, including Enterprise Resource Planning (ERP), manufacturing execution systems (MES), product lifecycle management (PLM), supply chain management ( SCM), Quality Management Systems (QMS) and Warehouse Management Systems (WMS).

In the following sections, we explore the general benefits of using the cloud by manufacturers and the specific benefits of using cloud computing services to support various manufacturing solutions.

Benefits of Cloud Computing for Manufacturing

Manufacturing companies are using cloud solutions in increasing numbers every year. According to career site Zípia , “Between 2010 and 2020, the size of the global cloud computing and hosting market increased by 535%.” There are many compelling reasons for this increase.

#1 in improved agility and scalability

When manufacturers use on-premises solutions, their hardware investment can be hit or miss. If they don't buy enough, they may not be able to run intensive operations if their business grows. On the other hand, if they buy too much, it may not be used during the downturn. Cloud platforms eliminate this conundrum with flexible, interconnected environments that can scale up or down based on dynamic business requirements.

#2: Greater Data Accessibility

With real-time data accessibility, professionals across all departments can access the information they need quickly and easily, no matter where they are or when they are working. This ease of access improves decision making and increases efficiency.

#3 Improved Collaboration

Cloud services enable seamless collaboration between company departments, locations, and external stakeholders such as supply chain partners. When manufacturers centralize data and operations in the cloud, they make it easier for teams to access and use it in real time. This enhanced collaboration improves communication, speeds decision-making and supports cross-functional teamwork, resulting in greater productivity and faster time to market.

#4 Greater innovation

With advanced digital capabilities and platforms that support advanced analytics, machine learning and the Internet of Things (IoT), cloud technology can serve to accelerate innovation. For example, companies can use IoT-enabled tracking systems to accurately monitor and track the location, status, and condition of materials from their suppliers.

#5 Greater Efficiency

Cloud-enabled systems enable manufacturers to integrate data streams from partners, platforms and devices, resulting in a centralized system of record that provides a single source of truth. These simplified systems are essential for developing insights that lead to smarter, faster decision-making.

#6 Reduced hardware and IT costs

Cloud-based solutions reduce or eliminate capital expenses associated with purchasing and maintaining on-premises equipment such as servers, data storage devices, power supply equipment, and data centers. Instead, these costs can be converted into operational expenses, which are easier to manage and predict.

#7 Predictive Maintenance

Cloud technology allows manufacturers to remotely monitor equipment to determine when it needs to be repaired or replaced. Equipment health and status are uploaded to the cloud via wireless IoT devices, which are connected to material handling equipment. This allows for greater efficiency in the maintenance and replacement of machines, which extends their useful life and reduces costs.

Predictive maintenance is possible thanks to cloud computing.

#8: Real-time Supply Chain Management

Cloud-based supply chain management solutions allow manufacturers to track inventory levels, supplier details, and logistics in real time. This allows companies to forecast demand, manage inventory and speed up order fulfillment. They can coordinate with suppliers and distributors to ensure smoother operations and better customer service.

#9 Increased productivity

By using the cloud, manufacturers can forget about many aspects of traditional IT operations, including purchasing, configuring and maintaining hardware, as well as the risk of infrastructure failures and data security breaches. Instead, they can focus on the core aspects of your business that lead to innovation, differentiation, promotion, sales and customer service.

#10: Better Ability to Attract Talent

Young workers are used to using digital applications in their personal lives and expect the same skills at work. Workers are attracted to using cloud-based applications that offer convenience and advanced features.

#12 Best value for money

Manufacturers typically pay for cloud computing technology on a pay-as-you-go model. This eliminates the upfront hardware expenses associated with on-premises solutions and reduces the need for costly infrastructure upgrades. Additionally, cloud-based solutions provide automation that can streamline multiple processes, resulting in greater efficiency, reduced waste, and more effective resource allocation.

#13 Greater Security and Disaster Recovery

Cloud applications are less susceptible to cyberattacks than those hosted on on-premises hardware. The reason is that cloud-based computing services can utilize economies of scale to offer the highest data security and encryption solutions. Therefore, confidential company and customer data remains safe and secure. These same security measures help manufacturers quickly recover from disasters or system failures.

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Types of Manufacturing Solutions

The following solutions are particularly useful for companies in the manufacturing sector and, when combined with cloud platforms, provide maximum benefit.

ERP

Enterprise Resource Planning (ERP) is a multi-featured system that integrates business processes across an organization. Its goal is to streamline operations by providing a central location for multiple interconnected services. Modules may include finance, purchasing, inventory management, production, sales and HR. Cloud-based ERP systems can help manufacturers in the following ways:

• Eliminates redundancy in systems, which reduces waste from data entry and other process efforts, improving overall operational efficiency
• Promotes faster decision-making by providing professionals across the enterprise with real-time access to critical information
• Reduces costs by simplifying processes in areas such as inventory management, purchasing and labor
• Improves compliance with regulatory requirements, reducing the likelihood of fines or other penalties

MONTH

Manufacturing execution systems (MES) serve as a bridge between ERP systems and real-time manufacturing operations to manage and monitor production processes. They can include work orders, scheduling, materials tracking, and data collection. Cloud-based MES can help manufacturers in the following ways:

• Improves production processes by processing work orders, managing resources and ensuring adherence to production standards
• Improve quality and maintain traceability with cloud computing tools that manage quality control and compliance
• Increases workforce efficiency by assigning tasks, monitoring team member productivity, and delivering instructions to operators.
• Promotes efficiency by analyzing performance metrics and identifying obstacles, inefficiencies and areas for improvement

PLM

Product lifecycle management (PLM) allows manufacturers to manage critical product lifecycle procedures. They include design for manufacturing, production enablement, maintenance and disposal. Cloud-based PLM can help manufacturers in the following ways:

• Enables dispersed teams to collaborate on product design and development, speeding time to market
• Enables scalability, making these solutions suitable for fast-growing operations of any size
• Enables users to access and manage solutions from anywhere, anytime, offering convenience and flexibility
• Supports cost reduction efforts by reducing initial and maintenance costs compared to labor-intensive on-premises solutions

Benefits measured in product lifecycle management (PLM)

SCM

Supply chain management (SCM) can help manufacturers manage their supply chains more effectively. Specifically, they support efforts in purchasing, inventory management, demand forecasting and logistics optimization. Cloud-based SCM can help manufacturers in the following ways:

• Helps companies make smarter decisions and better serve customers by providing real-time visibility into supply chain data
• Provides flexibility and makes it easy to adapt to changing business needs by enabling integration with other cloud-based services and applications
• Enables seamless collaboration with suppliers, distributors and other supply chain partners
• Provides data and predictive analytics to help companies optimize supply chain operations, leading to greater efficiency and better customer service

QMS

Quality management systems (QMS) help manufacturers ensure products meet quality and compliance standards and regulations. Cloud-based QMS can help manufacturers in the following ways:

• Helps companies ensure compliance with regulations and industry standards to avoid fees and other consequences
• Enables streamlined processes by providing effective document control and version management
• Provides flexibility and efficiency by allowing authorized personnel to access quality data and reports
• Enables efficient planning, execution and monitoring of quality processes, as well as internal and external audits

WMS

Warehouse management systems (WMS) help manufacturers optimize warehouse operations with inventory management, order picking, packaging, and shipping capabilities. These procedures improve distribution and logistics processes. Cloud-based WMS can help manufacturers in the following ways:

• Supports global warehouse operations by providing accessibility to critical data and tools from multiple locations.
• Provides real-time visibility into inventory levels, warehouse operations and order fulfillment, enabling better decision-making and responsiveness.
• Facilitates collaboration between warehouse workers, suppliers, logistics partners and e-commerce partners through shared access to real-time information about stock movement and order status
• Simplifies warehouse operations by automating manual processes, reducing errors and increasing overall efficiency in picking, packing and shipping.

Source: Markets and Markets

Cloud technology is perfect for an ever-changing manufacturing landscape

As technological advances and changing market dynamics force the manufacturing industry to evolve, maintaining control over operations is increasingly critical. While many manufacturers continue to make good use of traditional on-premises solutions, cloud-based options have emerged as powerful tools. These solutions provide numerous benefits, such as simplifying processes, increasing efficiency and maintaining compliance with regulatory requirements, leading to greater competitiveness.

Additionally, cloud-based options, including public, private and hybrid clouds, as well as XaaS offerings, allow companies to customize their infrastructures to their unique needs and compliance requirements. These solutions are restructuring the way production is done, offering scalability, cost-effectiveness, real-time data access and global collaboration.

Manufacturing solutions that harness the power of the cloud — including ERP, MES, PLM, SCM, QMS, and WMS — help optimize multiple aspects of manufacturing operations, from design and production to supply chain management and quality assurance . The cloud component offers greater flexibility, convenience, savings and security.

As all industries strive for greater digitalization in their operations, cloud-based production solutions are becoming less of a choice and more of a strategic imperative. Implementing cloud computing allows manufacturers to quickly adapt to market changes, respond to customer demands, and reach new levels of innovation. As technology continues to advance, those who take advantage of these capabilities will remain on top of their production operations and, beyond that, shape the future of the industry.