Cloud Manufacturing Software – Benefits, Types, Development Process and Cost Analysis

Cloud computing is set to become a bigger part of the manufacturing industry’s future as it continues to embrace digital transformation. With advancements in manufacturing software, cloud-based solutions are here to stay and only grow with time.

The potential of ERP can be realized with the help of cloud manufacturing software, which eliminates the need for an expensive and large technical staff to manage it. Instead of using on-site servers, manufacturers today look forward to cloud manufacturing software development as their go-to solution, offering lower costs, better support, and more room to scale your business.

A Market Research Future report projects that the global cloud manufacturing market size will scale at a CAGR (compound annual growth rate) of 14.4% between 2024 and 2032.

Based on the provided statistics, we can assume that more companies will utilize cloud-based manufacturing software in the future.

Let us dive into the details of the cloud manufacturing software development process, its various types, core features, and the benefits of cloud manufacturing software!

Why is Cloud Manufacturing Software Adoption on the Rise?

An increasing number of organizations are adopting multi-cloud usage for their manufacturing process. As cloud manufacturing software is flexible and offers a plethora of advantages, it is rapidly gaining prominence across manufacturers to streamline operations.

Having emerged as a game-changing technology, cloud manufacturing software has empowered small and medium-sized enterprises to strategically plan out their operations, particularly in industries where demand is volatile. In addition, it extends easy integration with additional revolutionary technologies, like AI, ML, and IoT, which can further boost work processes.

From leveraging gen-AI-powered predictive maintenance to avoid potential machine downtime to obtaining real-time manufacturing pipeline data sourced by IoT devices, cloud manufacturing software’s growing adoption across enterprises doesn’t come as a surprise.

Types of Cloud Manufacturing Software (CMS)

The cloud manufacturing software development landscape offers various options. Let’s explore some popular types of CMS with real-world examples that you can build from scratch or customize to suit your business needs.

1. ERP (Enterprise Resource Planning) Software

Cloud-based manufacturing ERP software is a complete package that unifies different departments and business operations inside a company.  It helps business owners improve decision-making, obtain real-time insights, and streamline processes by putting ERP software into practice. Key activities like inventory control, production scheduling, financial management, and customer relationship management can also be managed centrally with the help of cloud-based manufacturing ERP software.

Features:

• Data Analytics
• Automation
• Project Management
• Financial Management
• Customer Relationship Management
• Business Intelligence

Some examples of ERP software that you can consider integrating in your manufacturing processes include, Netsuite by Oracle, QuickBooks by Intuit, and Sage Intacct.

1. MES (Manufacturing Execution Systems) Software

As a leading cloud manufacturing software development example, MES software boosts productivity, facilitates educated decision-making, and gives business owners visibility into their manufacturing processes. Businesses can use it to monitor various manufacturing processes, such as inventory management, production scheduling, quality control, and equipment performance. Gartner states, “MES applications also provide feedback on process performance.”

Features:

• Human Resources
• Data Collection
• Quality Management
• Product Tracking
• Resource Management
• Work Order Management

A few examples of MES software are Siemens Opcenter Execution, Tulip Platform, and Oracle Cloud Manufacturing.

2. SCM (Supply Chain Management) Software

SCMs are essential for helping enterprises improve the effectiveness of their supply networks. Supply Chain Management software assists company owners in cutting expenses, increasing productivity, and reacting fast to shifting consumer needs. It improves visibility, makes it easier to work with partners and suppliers, and simplifies supply chain processes.

Features:

• Forecasting
• Order Management
• Inventory Management
• Logistics Status
• Return Management

3. HRMS (Human Resource Management System) Software

HRMS software helps manufacturing companies run more efficiently. It assists business owners in increasing employee engagement, workforce management, and the automation of HR processes. It facilitates performance management, tracks attendance, manages payroll, and tracks employee data.

Features:

• Employee Management
• Payroll Management
• Attendance Management
• Analytics
• Hiring Employee
• Salary History

4. Inventory Management Software

Using cloud-based inventory management software can help you avoid costly mistakes like overstocking slow-moving commodities and save money by allowing you to spend it wisely. It can increase visibility and control by performing repeated operations with minimal human intervention.

Inventory management software increases automation, reducing the possibility of human error, saving valuable time, and guaranteeing error-free performance.

Features:

• Inventory Tracking
• Inventory Forecasting
• Barcoding and Tagging
• Analytics and Reporting
• Backorder Management
• Inventory Alerts

Also read: 10 Ways AI in Inventory Management is Revolutionizing the Industry

5. PLM (Product Life Cycle Management) Software

PLM enables manufacturers to efficiently manage vital life cycle processes, including design for manufacturing, production enablement, maintenance, and disposal. For business leaders, PLM software aids in reducing time-to-market, improving product quality, and streamlining processes. It tracks updates, organizes paperwork, promotes cross-functional team cooperation, and guarantees regulatory compliance.

Features:

• Project Data Management
• Workflow Management
• End-of-life Management
• Quality Compliance
• Collaboration Tools
• Visualization and Design

6. WMS (Warehouse Management System) Software

Businesses can effectively manage their warehouse operations, such as order fulfillment, shipping, and inventory tracking, using WMS software. As a leading cloud manufacturing software development example, WMS assists business owners in cutting expenses, improving customer satisfaction, and streamlining their supply chain.

Features:

• Order Packing and Picking
• Inventory Control
• Analytics
• Mobile Functionality
• Barcode Scanning
• Space Optimization

7. QMS (Quality Management System) Software

Manufacturers can ensure that their products meet strict quality and compliance standards with the use of Quality Management Systems. Some of the benefits of cloud-based QMS are that it increases efficiency, mitigates the risk of fees, and executes quality assurance tests. QMS software assists business owners in meeting customer expectations, lowering defects, and improving product quality.

Features:

• Audit Management
• Risk Management
• Document Control
• Records Management
• Employee Engagement
• Advanced Analytics

8. CAD (Computer-Aided Design) Software

CAD software is indispensable for product design and development. By using CAD software, design teams can collaborate more effectively, make fewer mistakes, and design products more quickly, which eventually results in a quicker time to market and manufacture. It also enables companies to simulate designs, produce intricate engineering drawings, and develop and edit digital models of their products.

Features:

• Smart Tools
• Collaboration Tools
• Simulation Tools
• Preset Models
• Documentation Tools
• Change Management Tools

Decoding Key Benefits of Cloud Manufacturing Software Development and Integration

Understanding the transformative benefits of cloud manufacturing software development is essential before opting for it.  So, to help you make the right choice, here is a compiled list of diverse benefits of cloud manufacturing software.

• Reduced Costs

Working in the cloud significantly reduces the cost of software because it eliminates the need to invest in IT infrastructures. Developing a dedicated IT infrastructure can be expensive due to the cost of labor, energy, technical staff, and the resources needed for installations, maintenance, and downtime. The cloud manufacturing software development cost is significantly lower, granting you a cost-effective solution that introduces equal efficiency across manufacturing operations.

• Automatic Updates

Automatic and consistent updates in cloud manufacturing software provide robust protection against security breaches that often target on-premise systems, potentially causing significant data loss and reputational harm. In addition to offering protection, automatic updates also enable manufacturers to innovate their production pipeline and quickly address issues if found.

Example: Tesla leverages the power of cloud across the development of its EV vehicles, which enables it to readily address any potential issues by simply providing updates through cloud.

• Scalability

Cloud-based manufacturing software development is best suited for organizations that demand scalability and aim toward rapid growth. Business owners can easily integrate the cloud-based software with their existing legacy systems to handle increased data streams, avoiding the need for new hardware purchases. By doing this, businesses can avoid falling behind when their company experiences a rapid growth curve and thus increase productivity.

Example: Johnson & Johnson utilizes the cloud’s assistance to deploy secure virtual desktops that grant access to over 45,000 employees and non-employees of J&J’s resources. This further helps the company scale up with the growth and introduction of new talent within the company.

• Improved Security

In the cloud manufacturing software development process, the data is encrypted, which ensures they are protected. Automatic backup is another feature of such software that allows business owners to obtain backup copies of the data regularly. You don’t need to worry about the hardware, as you can access the data from the cloud anywhere.

Example: Partnering with AWS, GE encourages organizations to switch to cloud-based solutions to achieve enhanced security and operational agility at reduced costs.

• Collaborative Capability

Since data kept in the cloud is accessible from anywhere and anytime, cloud manufacturing makes it simple for team members to participate in and manage projects even when they are not at their offices. Your production line will operate more efficiently as a result, increasing revenue and sales.

Example: The global electronics manufacturing company Flex Ltd. harnesses manufacturing software cloud solutions to centralize data related to product quality. The availability of data on the cloud enables easy accessibility for collaborative endeavors.

Cloud Manufacturing Software: A Guide to Development Process

Now that you have learned about the various benefits of cloud manufacturing systems, it is time to dive into the cloud manufacturing software development process. Below are some of the vital steps to follow to develop your required software.

1. Specify the Requirements

The first step is to do research work. You need to know what exactly you want for your manufacturing software. Find out the latest trends and also monitor your competitors. You can take the help of experts to guide you in creating an optimized blueprint that best suits your organizational requirements and objectives.

2. Employ Cloud Consultants

The next step is to partner with a professional cloud manufacturing software development company like Appinventiv, which can help you build custom cloud manufacturing software and boost your progress. Our cloud consulting services offer a wide range of software development services, encompassing all stages of the software development process, from initial consultation to final development and post-launch maintenance.

3. Pick the Right Tech Stack

The next step will require you to assess and select the right tech stack suitable for your company’s unique goals. Here is what a typical tech stack can look like for you.

• Front-end Development – React, HTML5, JavaScript, and Angular
• Back-end Development – Java, Python, Node.js, and C#
• Cloud Platform – AWS, Microsoft Azure, and Google Cloud Platform
• Database – Microsoft SQL Server. MySQL, MongoDB, and PostgreSQL
• Software Integration – Apache Kafka and RabbitMQ
• Data Security – OAuth and SSL Certificates
• DevOps – Travis CI, GitLab CI, and Jenkins
• Monitoring – Kibana, Logstash, and Elasticsearch
• Performance and Scalability – HAProxy, Nginx and Redis

4. Development

Now that you have compiled a list of specific requirements based on your organizational objectives, a team of software developers, and the tech stack, the next step is development. You can use software development processes such as Agile to ensure an efficient project management process. As you proceed, it is important to consistently track progress and set clear, measurable goals to ensure the project stays on course and meets its objectives.

5. Testing and Deployment

After the development process, the next step is to test the software. Diverse testing methodologies are available to assess the quality and efficiency of software. Therefore, choose a testing method that ensures that your software meets both user expectations and industry standards. After testing, your software is ready to be deployed on the cloud.

Core Cloud Manufacturing Software Features to Consider

When it comes to cloud-based manufacturing software, there are several features that make it highly efficient and increase your business’s workflow. Here is a list of diverse cloud manufacturing software features you must consider when investing in custom-made software.

QA and Testing

Quality assurance is one of the primary features to look for in cloud manufacturing software. This feature guarantees that the manufactured products comply with quality standards and maintain consistency throughout the production process.

Manufacturing Planning and Scheduling

Integrating this feature into your software solution will make managing workshop production very easy. This feature can help schedule all your production activities and minimize downtime, increasing the overall productivity of your workflow.

Financial Management

Another feature to consider adding to your cloud-based manufacturing software is financial management. With this integration, you can manage and track your business transactions and receive detailed financial reports, helping you streamline the budgeting process.

Supply Chain Management

Supply chain management is another top feature that can increase the productivity of your cloud manufacturing software. Some of the benefits that you can enjoy with this feature are logistics tracking, supplier management, and order management. This feature offers seamless collaboration with your partners and suppliers as well.

Inventory Management

Integrating inventory management during your cloud manufacturing software development process can help track inventory levels. You can find out the amount of raw materials used by your manufacturing pipeline and the finished goods, aiding in forecasting future requirements and budgeting accordingly. Additional benefits you reap with this feature include demand forecasting, stock tracking, and streamlining inventory.

Analytics and Reporting

As you invest in a cloud manufacturing software development unit, make sure to get the analytics and reporting feature. This will help you generate insights and reports about your business. As a result, you can view all the metrics of your manufacturing operation, which will assist you in generating key performance indicators.

Remote Monitoring and Mobile Access

This feature simplifies monitoring and analysis of production lines and helps collaborate with mobile workflows. Thanks to remote monitoring with mobile access, you can remotely monitor your business’s manufacturing operations and receive notifications on mobile devices.

Cost Analysis of Developing Cloud Manufacturing Software

One of the most critical things to evaluate before getting custom-made software is to understand the cloud manufacturing software development costs.

Developing cloud manufacturing software can involve substantial expenses during the initial stages. To help you give a brief idea, the cloud manufacturing software development cost can fall in the range of $50,000 to $500,000. However, this figure is subject to change depending on diverse factors.

Let’s assess some factors that usually account for cost fluctuations and influence the final cost of developing cloud manufacturing software.

Scalability Conditions

Building scalable systems involves designing a strong, adaptable architecture. While a robust architecture may have higher initial costs, it provides greater efficiency and cost-effectiveness over time.

Project Timeline

Fluctuating development timelines can increase the project’s cost. The best way to tackle this is to create a clear project roadmap and milestones, which will reduce time-based development expenditures.

Customization of Features

The number of features you add to the software has a direct impact on the development cost. Some of the more costly features are real-time tracking and automated replenishment. Customization can further increase the cost with more features like predictive analytics and multi-location inventory management.

Safety

You must ensure that your cloud software complies with industry standards and robust security measures. Leveraging features such as data encryption and user authentication can raise the development cost. You also need to invest in regular security assessments to protect against cyber-attacks.

User Interface

You need to develop an intuitive, user-friendly interface, which can add to your development costs. Adding responsive design principles and more features to enhance usability will lead to customer satisfaction, but also increase your budget.

Development Team

Employing a professional development team with expertise in software development can cost a little more. However, working with teams who know about industry practices can speed up the development process and improve project efficiency, which is significantly better than incurring costs related to potential delays and errors.

Leverage Appinventiv’s Expertise to Fuel Your Manufacturing Operations

This concludes our exploration of cloud manufacturing software and its implementation across enterprises. We hope our careful assessment of cloud based manufacturing will encourage you to explore more about its prowess and eventually implement it to boost your own organizational growth.

So, if you are interested in cloud-based manufacturing software development and seeking a reliable tech partner for your manufacturing business, let the experts at Appinventiv guide you on this journey!

With a professional team of cloud specialists, we offer end-to-end cloud consultation and manufacturing software development services to help you reap the best out of your investments in cloud solutions.

Having demonstrated expertise through cloud-based projects like YKA’s retail platform, Diabeticu’s diabetes management app, ILITY -real estate SaaS solution, and KFC’s food delivery app, Appinventiv is ready to elevate your organization, too.

For Instance, we have built a scalable cloud-based real estate SaaS platform for Ility, streamlining property management and facilitating seamless transactions for the client.

Reach out to us and get ready to enter a realm full of uncharted possibilities with Appinventiv!

FAQs

Q. What is cloud manufacturing software?

A. Cloud manufacturing software refers to the use of cloud-based tools to manage and optimize all aspects of manufacturing operations by leveraging cloud resources. This software facilitates the management and exchange of production data and resources, streamlining tasks across various stages of the manufacturing process. Key benefits include improved management of supply chains, marketing, human resources, and resource allocation.

Q. How does cloud manufacturing software work?

A. To optimize manufacturing operations, cloud manufacturing software leverages cloud computing technologies, including big data, artificial intelligence, and advanced analytics. It enables real-time data collection and analysis, facilitating predictive maintenance, efficient inventory management, and stringent quality control.

Q. What are the benefits of using cloud manufacturing software?

A. Some benefits of cloud manufacturing software include reduced business costs, improved security, and increased efficiency. With enhanced accessibility to data and visibility of all operations, cloud manufacturing software streamlines the production process within manufacturing units, contributing to any business’s overall growth.

Q. What are the challenges of adopting cloud manufacturing software development services?

A. Despite so many benefits, there are several risks to implementing a cloud manufacturing system. Data safety and data ownership are two of the things you might risk losing if you do not use a well-defined development process. The best way to keep such risks at bay is to partner with reliable cloud service providers or cloud developers who are well-versed with the best industry practices and security standards.

Q. What types of cloud manufacturing software are available?

A. Here are some of the most popular types of cloud manufacturing software available:

• Enterprise Resource Planning Software
• Manufacturing Execution Systems Software
• Supply Chain Management Software
• Human Resource Management Software
• Inventory Management Software
• Product Life Cycle Management Software
• Warehouse Management System Software
• Quality Management System Software
• Computer-Aided Design Software

Q. What is the cost of building a cloud manufacturing software?

A. A custom-made cloud manufacturing software can cost you anywhere between $50,000 and $500,000. However, there are various factors like project complexity, security measures, cloud architecture, and UI/UX that can influence this estimated cost.

Get in touch with our cloud experts to get a more precise estimate for cloud manufacturing software development costs.

THE AUTHOR

Sudeep Srivastava

Co-Founder and Director