The Emergence of SaaS in the Manufacturing World
Software as a service (SaaS) is a cloud computing model where a software vendor provides a software solution to users through a subscription service. The software vendors are responsible for updating and maintaining the software systems, and the users just need to configure the cloud-based software to their company’s setup. Many companies cannot afford to build and maintain their own custom software systems, which makes SaaS cloud-based solutions an ideal tool.
The Pre-SaaS Era and Its Challenges
One of the major challenges manufacturing companies faced before SaaS solutions became widely available was the cost of building and maintaining a solution. Custom software development requires a significant upfront investment, and the continuous expenses to maintain the solution and update it to meet a manufacturing company’s growing operations. Many manufacturers could not justify or afford this expense, whether due to a lack of funds or stakeholder buy-in.
The Introduction of SaaS Solutions for Manufacturing
Once SaaS solutions became more common in the market with industry-specific solutions, they found their way into manufacturing. As more advanced technology was developed and incorporated into manufacturing software solutions, the more essential they became to the success of manufacturing companies. To gain a competitive advantage in the industry, manufacturers must adopt new technology, which is made more accessible with the use of SaaS solutions.
How SaaS Is Reshaping the Manufacturing Industry
Automation and Process Improvement: ERP, PLM, and MES Systems
A common goal for manufacturing companies implementing SaaS solutions is the ability to automate workflows and improve processes. Common software solutions used to achieve this include ERP systems, PLM software, and MES systems.
Enterprise resource planning (ERP) software provides manufacturers with the ability to view and manage their operations through a single solution, streamlining production and business operations. ERP systems make it easy for manufacturers to increase operational efficiency and gain valuable insights into resource utilization.
Product lifecycle management (PLM) software is designed to manage the product’s lifecycle from ideation to service or disposal. PLM software gives manufacturers the opportunity to manage the production planning process strategically, improving production operations and supply chain management.
Manufacturing execution systems (MES) are solutions that improve operational efficiency and increase the final product’s quality. MES software solutions connect the different parts of the manufacturing process to improve overall operations, including manufacturing facilities, vendor production, and distribution centers.
Cost Reduction and Efficiency Through Cloud Computing
When choosing a software solution, manufacturing companies have the option of choosing between cloud-based solutions and on-premises solutions. Cloud-based software solutions are most cost-effective for manufacturers that don’t have strict security requirements. Most SaaS solutions are hosted on the cloud because it makes the software solution more affordable and accessible to manufacturing companies.
Cloud SaaS platforms are ideal for the manufacturing industry as these solutions can be accessed across facilities and by multiple users. Cloud solutions also enable real-time updates that can be viewed by all users, which improves the overall operational efficiency.
Interconnecting Factory Networks
Since SaaS solutions are hosted on a cloud server, the solutions can be accessed from any location, as long as it has a stable internet connection. This allows larger manufacturing companies with multiple facilities to collaborate and work from the same solution. This can be beneficial for managers who oversee processes at multiple factories, giving them access to real-time data from any location. Additionally, using the same software solution at multiple factories can make it easier to compare and aggregate data, providing a variety of valuable data analytics.
The Future of SaaS in Manufacturing
Advanced Analytics, Predictive Maintenance, and Machine Learning
Data analytics is a valuable resource for manufacturing companies, allowing them to make informed decisions and measure KPIs. With the data gathered with a SaaS solution, companies can improve manufacturing processes by analyzing equipment performance and operational data.
Predictive maintenance uses historical and current data to perform maintenance on equipment and assets before they become an emergency. This allows the maintenance teams to schedule out maintenance without disrupting the production processes, reducing the risk of downtime and ensuring the health of manufacturing equipment.
The manufacturing industry has adopted artificial intelligence (AI) and machine learning (ML) technology to automate workflows, enhance equipment maintenance, and improve data management. SaaS providers can implement new technology as it advances to provide manufacturing companies with access to innovative tools, giving them an opportunity to enhance their workflows.
Cybersecurity, Disaster Recovery, and Data Protection
Since cloud solutions have more security vulnerabilities than on-premises software solutions, SaaS companies must have additional security measures to protect a manufacturing company’s sensitive data. Some of these security measures can include multi-factor authentication, restricted access control with user roles, and session timeouts.
A SaaS provider must have a disaster recovery plan that is shared with manufacturing companies and clearly outlines the expectations for when the system goes down. This can include the acceptable maintenance windows, a communication chart with escalation contacts, and the data protection and security measures.
Data security measures can range from user access security to the security of the data centers that store customer data. It’s crucial for SaaS applications to have extensive data protection measures in place, including data encryption that maintains data quality.
How Geneca Can Help
Geneca has over 25 years of experience creating and maintaining high-quality, reliable custom software solutions. Our partners choose us because we:
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Understand software and business, including industry processes and regulations
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Use cutting-edge technology paired with trusted, evergreen tools
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Communicate changes, progress, and expectations through every step of the development process
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Honor your budget and timeline from the start
If you’re ready to learn more about how you can build a SaaS solution for manufacturing companies, contact us today!