Modern SaaS Manufacturing Software Explained
Cloud systems play a vital role in connecting the plant floor activity to corporate finance in the manufacturing industry. In the past, factories relied upon disparate/stand-alone software solutions to manage the processing of customer purchase orders by enterprise resource planning (ERP) systems, while tracking the shop floor process either using on-premise systems or by utilizing paper logs.
This type of structure created blind spots in data visibility, delayed financial reporting and made lot tracking for product recalls slow.
Today, many cloud-based industrial applications have brought together inventory control, shop floor scheduling, quality management, and general ledger accounting on the same digital network. Market analysis indicates that the use of cloud-based manufacturing solutions in factory settings is increasing by more than 10% annually.
As factories continue to transition to cloud-based solutions and away from heavy local server installations, the workload on internal IT departments will be reduced and system updates will be released more quickly. Selecting the right SaaS manufacturing software for your business involves striking a balance between deep plant level execution and corporate level accounting.
This evaluation examines 18 of the leading cloud manufacturing solutions available on the market (arranged into 4 categories): enterprise cloud suites, visual shop floor execution platforms, quality systems, and inventory control engines. Enterprise solutions provide the complete financial integration, whereas visual shop floor execution platforms allow for faster implementation time.
In order to choose the right software solution for an operation, operational teams should look beyond the basic features and evaluate the total cost of implementation, system integration migration stability, and long-term data storage planning.
Software Costs and How Systems Connect
Evaluating SaaS manufacturing software costs requires more than the current monthly subscription cost per user. The cost of implementing and maintaining a total ownership of a plant management system will include: data transfer, application support, and normal system management (which is required on an ongoing basis).
Most basic licensing options for plant software will be minimal but will typically require a multi-year commitment to building out a complete enterprise application, as well as a period of between 6 to 18 months for the enterprise software setup to occur.
The foundation for the plant's technical operation is based on the development of a reliable digital sequence.
The bill of materials is a document that identifies the materials required for production. Software starts an order when it is created; then, the software will create a work-order and schedule jobs based on that order. As operators on the shop floor complete their assigned tasks, the software will automatically deduct materials out of inventory and track the progress of the job.
Finally, the actual costs of the material, labor, and machine time will be directly posted into the financial accounts of the company.
When data connections between systems stop working, the inventory count will become unbalanced and the manual process of correcting inventory discrepancies using employee hours will continue to generate errors that will take considerable time to resolve. By using a total operational expense analysis, managers can plan a realistic budget for developing their software to manage the plant.
SaaS manufacturing software subscription fees are based on the number of active users or plant locations, as well as the number of machines connected to the software.
Implementation services (such as data cleansing, workflow design, and training of staff) will require between 6 and 18 months.
The costs for middleware platforms and the setup fee for API connections required to link factory systems with the corporate financial platform.
Ongoing administrative support for data maintenance and user security.
18 Leading SaaS Manufacturing Software Providers
1. Odoo Manufacturing
Odoo Manufacturing combines product assembly, materials planning, and shop-floor management in one easy-to-use, cloud-hosted platform.
Via an integrated interface, software and hardware partners can efficiently coordinate resources, reducing or eliminating delays associated with coordinating manual efforts.
2. SAP S/4HANA Cloud
SAP S/4HANA Cloud utilizes an in-memory database as the backbone of its system, allowing it to provide visibility over global manufacturing operations in real-time.
This software platform supports companies that require high-frequency transaction processing and the ability to quickly assess whether they are meeting the requirements of regulatory authorities, vendors, and customers. Additionally, the platform offers specialized software features to automate the procurement and scheduling of resources based upon current customer demands through embedded artificial intelligence modules.
Other key advantages of the SAP S/4HANA Cloud platform include its ability to maintain compliance with strict regulatory compliance requirements, facilitate detailed tracking of lot numbers, and provide a global multi-currency accounting solution. While the platform can provide significant benefits to a business, explicit capital investment and the establishment of dedicated project teams and implementation windows between 12 to 18 months are typically required to fully deploy this solution.
3. Oracle Fusion Cloud ERP
The Oracle Fusion Cloud ERP solution is designed to provide the operational and financial accounting solution for complex companies that manufacture products using both discrete and process (continuous or batch) methods.
The Oracle Fusion Cloud ERP offers a comprehensive production execution module allowing for real-time updates of product costing models and direct integration of accurate financial information into a company's corporate accounting system.
Additionally, the multi-organization support of the Oracle Fusion Cloud ERP enables managers to manage procurement of materials between organizations, coordinate inventory transfers between plants, and fulfill customer orders across regions. Having all data in a single place helps businesses to view the overall health of their business while also providing them with the tools needed to run their business efficiently.
4. Microsoft Dynamics 365 Supply Chain Management
Microsoft Dynamics 365 Supply Chain Management is designed for mid-size and enterprise manufacturing companies, providing them with a full suite of integrated tools that feature plant scheduling, material requirements planning and warehouse control.
The platform includes high-end warehouse features such as directed item placement, optimized pick routes and real time inventory tracking via mobile device scanning.
The native interoperability with the Microsoft technology ecosystem enables companies to create real-time operational dashboards using Power BI, and automate their daily operations via low-code workflows. Because the software has a modular design, companies can deploy the core inventory management tools first, then expand into the more sophisticated plant execution tools, thereby lowering the overall project risk.
5. Infor CloudSuite Industrial
Infor CloudSuite Industrial is designed specifically for the manufacturing and specialised equipment industries. With a specific focus on the discrete manufacturing process, Infor integrates industry-defined processes into its core software package, eliminating the need for custom coding during implementation.
By integrating key components of manufacturing equipment maintenance, quality assurance and operational execution into one system, Infor provides users with complete visibility into job costs and equipment availability. With the quality inspection history directly linked to the job, defective products cannot be produced and shipped without inspection.
The Infor solution provides the operational infrastructure that traditional equipment manufacturers need to successfully transition to a digital operating model.
6. NetSuite Manufacturing Edition
NetSuite Manufacturing Edition provides growing mid-market manufacturers with cloud-based access to work-in-progress tracking, advanced work order routing and materials need planning.
The platform provides all the functionality of customer order management, purchasing, inventory management and accounting integrated in a single web-based dashboard. NetSuite's work order system enables supervisors to monitor build cycles, track component usage, and detect delays related to the production process before shipments are due.
NetSuite is designed to support the growth of companies due to the increase in transaction/volume through seamlessly scaling as their transaction volumes increase. However, if a company has a very highly complex automated manufacturing plant, it may require additional tools for collecting machine data.
7. Epicor Kinetic
Epicor Kinetic is a cloud-based solution designed for discrete manufacturers, including aerospace, industrial machinery, and fabricated metals. Epicor Kinetic provides a detailed view on job costing, infinite capacity scheduling, and provides a complete view of material control based on the actual workflow of the manufacturer.
The Epicor Kinetic system guides operators on their daily work tasks with customizable interface panels that provide ease-of-use for tracking jobs and issuing materials.
In addition, Epicor Kinetic includes built-in compliance management capabilities that assist a plant in meeting quality standards without excessive paper documentation. Epicor continues to be very popular with mid-sized manufacturers who need concentrated manufacturing functions, and not the complexity of an enterprise-class manufacturing solution.
8. Acumatica Cloud ERP
Acumatica Cloud ERP has been developed to provide companies with an entirely flexible business platform.
Acumatica Cloud ERP offers flexibility for production management, bills of materials design, and material requirements planning (MRP). Instead of being exclusively fee-based by user, as most software is, Acumatica charges based on the resources utilized, allowing users to add plant floor operators and users without additional licensing cost.
In addition, Acumatica Cloud ERP provides tracking capabilities of materials/components' costs, direct labor costs, and factory overhead costs throughout a multi-stage assembly process.
Acumatica Cloud ERP's dashboard view provides up-to-date information about shortages of components and bottlenecks in the work order cycle, and remains open to integrating with any equipment on the plant floor through a unique integration capability.
9. Plex Manufacturing Cloud
Rockwell Automation's Plex Manufacturing Cloud combines a cloud-based manufacturing platform with a complete toolset for enterprise resources.
Plex, a manufacturing software company, has developed its manufacturing software through years of experience of actually manufacturing products; therefore, Plex software provides lot genealogy, statistical process control, and real-time production visibility from the shop floor to the warehouse.
Plex's manufacturing software collects direct data from the machines and operator stations in a plant, and provides quality checks on all parts manufactured before the parts go to the next operation in production. This close relationship with the automotive and industrial parts and components industry of Plex makes Plex a reasonable choice for companies that have tight specifications for the quality of the products produced.
The combination of Plex's cloud platform and the full traceability of all products manufactured provides manufacturers with complete traceability of their finished goods through the entire supply chain.
10. Katana Cloud Inventory
Katana Cloud Inventory is a cloud-based manufacturing management platform for small to medium-sized manufacturers that is designed for ease of use.
Katana Cloud Inventory has an easy-to-use graphic interface automatically linking customer orders to stock levels of components and to manufacturing schedules.
Katana Cloud Inventory allows operators to alter the production schedule by dragging and dropping orders, and Katana Cloud Inventory will automatically recalculate the availability of material and the start date for the jobs.
Katana Cloud Inventory can integrate with most eCommerce platforms and all accounting software solutions, making it an excellent option for e-commerce direct-to-consumer brands and small assembly operations with a desire for clear visibility of their operations.
11. Tulip
Tulip provides a low-code application development tool that enables production managers to create automated work instructions on the shop floor without writing any programming code at all. Tulip also serves as a standalone execution platform, converting paper-based operating instructions into digitized step-by-step instructions that can be viewed on a touch screen or tablet.
Tulip collects data from factory devices and sensors directly connected to the Tulip cloud to provide real-time access to cycle times, operator input, and defect logs.
An assembly line will use Tulip with any existing corporate accounting solutions to quickly digitize their assembly lines, increase the number of first-pass quality parts produced, and decrease the number of manual data entry errors by the workers.
12. MasterControl Quality Management
MasterControl Quality Management is a cloud-based software developed specifically for manufacturers in regulated industries such as medical device manufacturing, pharmaceutical manufacturing, and food processing.
The software automates several processes, including document control, engineering change orders, non-conformance tracking, and corrective action workflows via automated, electronic processing.
Because of its ability to provide complete electronic batch records and automated audit logs, MasterControl helps companies maintain compliance with FDA regulations as well as ISO quality standards.
In addition, being able to connect a company’s quality events to its manufacturing processes minimizes the possible risk of recalls and helps speed up the time it takes to release batches of items for sale.
13. QT9 QMS
QT9 QMS is a modular quality management system designed to help growing manufacturers streamline compliance, supplier evaluations, and internal audits. The QT9 QMS allows users to store all of their quality records, inspection logs, and customer complaint investigations in one location.
The QT9 QMS also automatically sends out alerts to remind users of equipment calibration dates, corrective action deadlines, and document review deadlines.
By linking quality data back to the inventory lot records, manufacturers can easily identify and stop the shipping of non-conforming products.
14. Brightpearl
Although not intended for high-tech industries, Brightpearl is designed specifically for retail brands, wholesale distributors, and multi-channel manufacturers. Its primary purpose is to manage the process of fulfilling customer orders through the creation of a single source of truth for the entire order and inventory fulfillment process.
Brightpearl can automate many of the repetitive tasks associated with order processing, inventory allocation, and purchase order planning, thus eliminating the need to have individuals do those jobs.
Moreover, Brightpearl’s inventory management capabilities will help retailers and wholesalers maintain synchronized inventory levels across all of their warehouses in real-time and help prevent either stockouts or overstock situations.
15. Siemens Opcenter
Siemens Opcenter is an enterprise-class manufacturing execution system tailored for the automotive, aerospace and electronics sectors that require the management of complex manufacturing operations.
With Opcenter, users can view real-time job execution statuses, schedule jobs with an advanced scheduling algorithm and ensure quality control throughout the entire manufacturing process.
With its digital manufacturing capabilities, Siemens Opcenter is part of the larger Siemens ecosystem of industrial software that connects product engineering with manufacturing.
With this integration, manufacturers can view and simulate their manufacturing plants in a 3D environment and optimize their cycle times and the source of their parts as they move through the various manufacturing stages.
16. Rockwell Automation FactoryTalk
Rockwell Automation FactoryTalk enables industrial manufacturers to execute high performance on the shop floor. FactoryTalk integrates the operations of machines and analytics on a continuous basis with their PLCs and other related equipment to continuously monitor machine production rates and the health of their machines.
FactoryTalk uses raw sensor inputs to provide users with a clearer insight into the performance of their machines and the processes being used, thus allowing operations teams to identify potential problem areas and schedule preventive maintenance prior to machine failure.
In addition, FactoryTalk's line simulation capabilities allow engineers to review process changes prior to implementing them in live production.
17. GE Vernova Proficy
GE Vernova Proficy is an execution system designed to help improve the efficiency of a factory and monitor overall equipment effectiveness as well as the quality of product processes. By collecting data from the factory floor and presenting this data through live visual dashboards, Proficy displays the uptime of each machine, the rate of production and the amount of scrap produced.
Using the Proficy system, a factory can detect early indicators of performance loss on a machine or changes in processes and make adjustments to reduce material defect rates.
By continuously collecting data from a factory, Proficy provides manufacturers with valuable information to reduce their production costs and improve their overall manufacturing output.
18. Manufacturo
Manufacturo's manufacturing execution system (MES) is an innovative, cloud-based solution designed specifically for high-tech start-ups, scale-ups and manufacturers of physical products. With its flexible integration capabilities, you can easily connect with your existing engineering documents and accounting systems to get your production lines up and running faster.
Manufacturo's cloud-based solution lets your production department quickly configure sophisticated bill of materials structures, monitor prototype builds and manage lot genealogy without having to involve a great deal of consulting resources.
The scalable execution framework was created to allow manufacturers who experience high growth rates to adapt easily to increased production volume as they grow and change.
How to Choose the Right Software for Your Factory Size
When selecting a software solution for your facility, the first step is to evaluate each vendor's platform against your specific operational needs, the size and capacity of your work force, as well as local, state and federal regulations.
For example, small assembly plants processing low transaction volumes typically see early success using lightweight visual planning software such as Katana or Odoo. These systems are typically easy to implement, have low end-user training requirements and provide visibility into basic inventory transactions.
In contrast, large multi-plant operations or those operating under strict regulatory requirements such as medical device, aerospace components, and processed foods will require more extensive SaaS manufacturing software capabilities.
Due to the regulatory requirements imposed by these industries, the software solution you choose to use in these environments should have built-in electronic batch record capability, electronic signature functionality and 24-hours lot genealogy tools readily available.
In addition, when selecting an enterprise resource planning (ERP) solution for your facility, it is essential to ensure that it complies with regulations, even if the implementation takes substantially longer than with smaller manufacturers.
It's important to confirm that physical stock movements will automatically post the associated financial valuations directly to the general ledger accounts. Use the platform's electronic batch record/electronic audit trail tools to document compliance with FDCA/FSMA requirements.
Check the amount of time your IT staff has to assist you with implementing the system; you should allow for periods of 6 to 18 months depending on the type of configuration needed.
Determine if you have the ability to implement low-code tools so that your operators can get accustomed to using digital instructions without creating any delays in production.
Frequently Asked Questions About SaaS Manufacturing Software
How can factories operate if systems lose connection?
The most common cause of missed inventory transactions and incorrect job cost calculations is because of the lack of immediate notification about silent sync failures. Silent sync failures can occur in the background whenever a message is dropped from one of the systems (e.g., an ERP system) prior to the operator having the opportunity to review the message.
This can result in discrepancies between expected inventory and actual inventory, along with incorrect job costs.
To avoid this problem, engineering needs to implement active middleware monitoring that confirms all incoming and outgoing messages.
Also, both systems should also be programmed to send out notification alerts when an inventory transaction or work order fails to post to the database.
Finally, if there are clear data ownership guidelines between the two systems, it will help prevent the same master item record from residing in multiple systems.
When will a mid-sized factory have a fully working system?
Mid-market manufacturers can expect to have their systems operational from 6-18 months after setup. In most cases of cloud systems focusing solely on tracking inventory, the setup time can take 30-90 days.
However, if the system requires custom equipment to connect to, moving legacy data to the new system, and fully integrating financial accounting, it will take much longer.
Typically, the longest phases of a project involve cleaning historical item data, developing customized software connectors to connect all equipment to the MRP system, and testing (along with training) the new systems in the shop or factory.
Manufacturers that employ an internal project leader, develop a robust cleaning process for historical data, and setup their new systems earlier in their projects consistently are able to meet their overall established system operational goals.
How does tracking material history help factories follow the rules?
Factories and manufacturers within regulated industries must comply with strict regulatory guidelines such as food safety regulations that require that lot-based documentation (traceability) be provided for all products that are recalled within 24 hours of the recall notification.
In order to meet these timeline requirements, factory personnel must track and capture the lot numbers of all material used in the manufacturing process from the time the raw material enters the facility until the finished product is manufactured and packaged.
Tracking using paper means that there is a risk of affecting shop floor efficiency by introducing more errors when recording accurate lot numbers on paper.
Modern cloud applications will provide a more efficient way of accomplishing this task, allowing operators to scan the lot numbers of fed materials directly at each workstation. With modern applications, operators can record the complete history of the first finished lot without the need for any additional paper documentation.
Why do workers stop using new factory software after it is set up?
Twenty per cent of the overall use of the software on your manufacturing site will generally be lost to the lack of ongoing use of the software by factory personnel following the initial launch of the new software.
This usually occurs due to the operators returning to the printed work orders, manual spreadsheets, or any other method of keeping track of job data and eliminating the use of the new software.
Each of the above issues will typically occur due to one or a combination of the following three issues: the user interface design of the software is too complicated; the data entry requirements for inputting job data are too complex; and/or the factory personnel did not receive adequate training on the new system prior to launch.
As a result of the above issues, busy factory operators will frequently fail to follow through with the data entry process, creating a situation where the live data stored in the system is not viewed as accurate for conducting operational analysis.
To avoid these issues, it is critical that manufacturers or other businesses involve frontline workers when performing testing within their software systems.
Involving frontline employees early in the process of testing software when developing a new product will help to sustain operational compliance for a longer period of time.
Selecting software that features clear touchscreen functionality and low-code operating instructions will support long-term operational compliance for manufacturers.
