Manufacturing has become largely an automated process, especially with the rapid adoption of Internet of Things (IoT) technology. As a result, manufacturing processes have become incredibly complex. With computerization, the focus has shifted from an understanding of the inner workings of manufacturing processes to supply chain management (SCM), enterprise resource planning (ERP) solutions and managed IT services software to oversee operations.
With this evolution the manufacturing responsibilities, the skills required have changed. The industry experts who have been with a company for decades and understand the ins and outs of production and quality control either have had to upgrade their computing skills to encompass managed services, or find the right partners to take over the technology components. Many smart manufacturers understand that you can’t let the tools get in the way of production, and forcing company experts to become IT experts detracts from their core competencies and is ultimately counterproductive. Rather than forcing the industry experts to take on a new discipline, more companies are seeking out partners like OneNeck who understand managed IT services for manufacturing.
Managing the Cost of ERP
The cost of managing ERP services once you deploy them depends on a number of variables, such as the size of the business and the number of users that need to be supported, and the amount of customization required as part of the ERP infrastructure. The more users and the more customization, the higher the price tag. And if you are in a highly-specialized industry, customization can add up as well since you have to build in additional flexibility for production planning and resource management.
In general, the deployment model will dictate operational costs. Deploying ERP in-house as opposed to using hosted managed services is typically much more expensive. In general, cloud-based ERP systems are paid on a subscription basis, typically per user per month, and tend to cost 20 to 30 percent of the cost of a perpetual license for an enterprise software package.
In addition to licensing fees, you also have to take into consideration maintenance and support. The ERP hosting provider often includes maintenance and support as part of the subscription fee. For in-house ERP systems, users still have to pay between 10 and 20 percent for service in addition to the licensing fee.
Performing a cost analysis for managed services using an in-house strategy versus a hosted provider will reveal which approach will be best for your operation. Chances are you will find that using hosted managed services provides substantial savings from the outset.
Focus on Core Competencies
To maximize profitability without disruption, manufacturers need to understand what’s working and what isn’t in their production process and supply chain. The right managed services experts can work with the IT team and in-house experts, so each department brings their own expertise to the table and together they can analyze end-to-end processes.
To maximize value from managed services, you want each party to bring a unique skillset so they can concentrate on areas that will value from their expertise. For example, working with a managed services provider should free up the manufacturer’s IT team to focus on areas strategic to their business, such as managing the control system to ensure smooth production operations or tracking goods within the warehouse to make sure that orders are being shipped properly. By working with a hosted managed services provider, the routine operations of the company can be outsourced so the in-house experts can focus on the systems that are core to manufacturing operations.
OneNeck has the capabilities to deliver hosted managed services customized to complement manufacturing and production. We bring the expertise to monitor and manage the IT infrastructure so our customers can focus on their business, not their enterprise infrastructure. At OneNeck, more than half of our staff are experienced engineers who provide a full-service, turnkey IT solution for customers. We also have an extremely high degree of customer satisfaction backed by service level agreements that guarantee satisfaction.
The reason so many of our customers are leaders in their industries is because OneNeck’s managed services team frees the in-house staff to excel at managing internal operations. We take on the hard stuff in managing the business so they can focus on making better products and delivering better customer service. And every engagement is customized to meet each of our customer’s unique needs.
Let us help you unlock new doors to success. Our managed services team can handle the heavy lifting of day-to-day operations so your organization can shine by doing what you do best.
OneNeck can help your manufacturing keep pace with the changing needs of your customers. Listen in as Jeff Budge, OneNeck’s VP of Application Consulting and Product Management further discusses nimble manufacturing in an ever-changing technology world here.