Understanding On-Premise Manufacturing Software
Manufacturing software can be hosted either on-premises or through a cloud vendor. Both options come with their benefits and disadvantages, so it’s up to the manufacturing company to weigh the options and determine which is the best approach for their system.
Definition and Basic Features of On-Premise Manufacturing Software
On-premise software is installed and run on servers that are located within the premises of a manufacturing facility. Since the servers are physically located in the facility, manufacturing companies have far more control over the software and data than cloud-based software.
With on-premise software, manufacturing companies are the ones responsible for system maintenance, including penetration testing, upgrades, and ensuring data security. Manufacturing companies with strict requirements around data security and user access are more likely to utilize on-premise solutions, as they provide more control over data.
Why Choose On-Premise Software for Your Manufacturing Company?
When choosing an enterprise resource planning (ERP) system, manufacturing companies should consider their security requirements, staffing resources, and cost restraints. Cloud ERP systems are more cost-effective, but offer less stability and control than an on-premise ERP system.
Along with the advanced security capabilities, on-premise ERP systems are far more customizable than cloud-based ERP systems, as manufacturers will have complete control over the system. This also results in on-premise solutions being more stable, as they are not dependent on an internet connection like cloud ERP solutions. So, in the case of internet outages, manufacturers can keep operations running smoothly with no interruptions.
Major Benefits of Stability in On-Premise Manufacturing Software
Now that we’ve reviewed what on-premise ERP systems are and why a manufacturing company would utilize them, let’s take a closer look at some of the benefits.
Enhanced Reliability of On-Premise Systems
Manufacturing facilities that utilize an on-premise ERP solution will have more reliable access to their system. One contribution toward this reliability is the fact that the system doesn’t require a stable internet connection, as cloud software does. This allows manufacturers to continue operating as normal when working in a facility with unreliable internet connections.
Another reason on-premise software is more reliable is the control a manufacturer has over their own system. With cloud-based solutions, manufacturers are dependent on the software vendor to complete system updates, resolve outages, and customize workflows.
On-premises solutions give manufacturers complete control over their system, allowing them to make updates and troubleshoot issues as they come up. This reduces the amount of time required to make changes to the system, as manufacturers don’t have to rely on the cloud ERP vendor to complete the work.
Less Disruptions: Avoiding the Cost of Downtime
One benefit of the increased reliability of on-premise ERP systems is the reduced risk of downtime during operations. When a cloud ERP system goes down, then shop floor operations will likely have to stop production until the solution is back up. Downtime can result in costly delays for maintenance, production, and push delivery dates, which could impact customer satisfaction.
With an on-premise ERP system, manufacturing companies can schedule system updates around maintenance and production schedules, reducing the risk of downtime halting production.
Increased Localized Control & Security
One of the primary benefits of on-premise software is the additional security measures manufacturers can put in place. Cloud-based ERP solutions are at constant risk of a data breach and riddled with privacy concerns. With an on-premise system, manufacturers will have complete control over their security measures and greatly reduce the risk of data breaches.
This makes on-premise ERP systems the best solution for manufacturing companies that work with sensitive data or private contracts.
Value of Control in On-Premise Manufacturing Software
Control is a common theme in the benefits of on-premises software for manufacturing companies. Let’s take a look at what this control can look like for a manufacturer and why it’s so important.
Ensuring Stringent Quality Control Processes
When building a custom, on-premise ERP system, manufacturers can implement stronger quality control measures throughout the production process to ensure a high-quality final product.
Cloud-based ERP solutions are typically designed around a standard set of business processes in order to market to the largest pool of manufacturers. If a manufacturer has unique steps or requirements in their production workflow, finding a cloud ERP system that meets their needs can be difficult. With an on-premise ERP system, manufacturers can design the system around their unique workflow, increasing the quality of their final product.
Adherence to Compliance & Regulatory Requirements
Depending on a manufacturing company’s market or industry, they will have various compliance and regulatory requirements they need to meet and report on. With a custom, on-premise ERP system, manufacturers can build workflows around these requirements to ensure they are in compliance with local or federal regulations.
Additionally, manufacturers could face requirements around data security and privacy that cloud systems might not meet. In these cases, on-premise systems are the best solution for manufacturers to have the highest security measures possible.
Flexibility and Customization: Tailoring Software to Specific Needs
When manufacturing companies choose to build a custom solution, it’s likely because they have unique business processes or they have tried cloud solutions and haven’t found success with them. While it’s still a custom solution, custom cloud solutions will still have limitations around storage and functionality. With custom, on-premise solutions, manufacturers can truly tailor every aspect of their ERP system.
How Geneca Can Help
When you partner with Geneca, you’re choosing to work with a company with over 25 years of experience. With this experience, we bring:
A 97% success rate in an industry that averages around 30% as the norm
A commitment to stick to your budget and timeline
Transparent project management and client communication
Industry knowledge of software and business regulations
If you’re ready to take the next step and learn more about how on-premises ERP software can benefit your company, reach out to Geneca today.
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