Manufacturing and Job Shop

How Modern ERP Helps Manufacturers Make a Successful Move to Industry 4.0

Written by Lindsay Brown | Mar 21, 2018 5:00:00 AM

With cloud computing now a mainstream concept, analysts have moved on to a new term that is going to change the way manufacturers do business. The term, Industry 4.0, refers to the next “Industrial Revolution” and refers to new collaboration and data exchange between people, processes, technologies and things. However, without a stable foundation, the push towards Industry 4.0 will fail to get out of the starting gate.

The Manufacturing World is in a State of Change

According to a recent report from Aberdeen Group, the manufacturing industry is entering a tumultuous time. Customers expect more, automation and analytics are more important than ever, and in order to succeed, manufacturers must explore new ways to deliver innovative products and services.

The free report, “ERP’s Role in the Modern Manufacturer: Supporting the Needs of Industry 4.0,” explores the numerous paths that manufacturers can take as they transition to Industry 4.0, finding that one critical component—modern ERP—can lay the groundwork, build the foundation, and put you on a path to success.

Written by analyst and expert Nick Castellina, this report separates the leaders (top 35%) from the followers based on key factors including delivery competency, inventory accuracy, and the improvement in profitability and productivity over the past two years.

What Separates Leaders from Followers?

According to Castellina, those placed in the Leader category cited the following strategies as ways to improve their operations and how they “compete” in Industry 4.0:

  • Streamline and accelerate processes to improve efficiency and productivity
  • Modernize technology infrastructure and applications
  • Optimize the supply chain and improving interoperability and collaboration

Cloud ERP: Providing Innovation On Demand

The one way that they made this happen? A modern, end-to-end, manufacturing-focused ERP. Per Aberdeen, while eighty-three percent of manufacturers had ERP in place, there were some important differences between leaders and followers, most notably that leaders were more than three times more likely to embrace the cloud.

“In Industry 4.0, ERP must embody the goals of a modern manufacturer and support the technologies that enable faster access to more useful data that enable s efficient, agile, and automated processes,” says Castellina, adding “Additionally, cloud solutions are continuously updated by software vendors, ensuring support for new best practices and regulations as well as emerging technologies. This deployment model supports manufacturers who are flexible, fast, and effective.”

Business Analytics Integration (and its Role in IoT)

While the cloud appears to be the first step in becoming successful in Industry 4.0, the next defining factor is the use of business analytics. The research found that leaders are 16 percent more likely to embed business analytics into ERP, allowing them to do more with the increasing amount of data they generate.

By embracing business analytics, these companies will be better prepared to handle one of the most important components of Industry 4.0: The Internet of Things (IoT).

“Analyzing the effectiveness of processes, determining profit trends, and monitoring customer data can lead to better, more insightful decisions that will positively impact the bottom line. Furthermore, an organization connected to the Internet of Things will be able to revolutionize the way it delivers products and services, due to an ability to analyze equipment, machinery, and product data, as well as using devices that support process change.”

Learn More: ERP’s Role in the Modern Manufacturer

For manufacturers hoping to succeed during the shift to Industry 4.0, they will need to have laid the groundwork long before they hope to gain any realistic value. By using ERP to support visibility, agility, collaboration, and emerging technologies, leading manufacturers can improve performance across a variety of metrics and begin to reap the rewards faster than those who get left behind.

If you hope to learn more about the coming Industrial Revolution, and how ERP will give you the opportunity to improve, we welcome you to download the entire guide, ERP’s Role in the Modern Manufacturer: Supporting the Needs of Industry 4.0 from your friends at Clients First Business Solutions.


Clients First implements and supports Acumatica clients across the U.S.A. and in 11 countries. Contact our sales team today by calling 800.331.8382, or emailing info@cfbs-us.com.