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Food Management Software: Is On-Premise or Cloud ERP Better?

With so many options for food management software, it’s no surprise that your production and manufacturing operation is going through a thorough review process to determine which option is best for you. While there are several different iterations of ERP software that include different operational elements, there are two main presentations: on-premise ERP and cloud-based solutions. Today, we’ll be exploring what each of these tools can offer, and the key benefits and differences of each. 

Let’s explore which type of food management software is best suited for your production and manufacturing business. 

What is the difference between on-premise and cloud ERP? 

There are several differences between on-premise and cloud ERP solutions. However, the primary difference is the execution of the system itself. With on-premise solutions, the actual servers and software are located as the name suggests on-premise. Cloud solutions are hosted online via a web browser, access to multiple locations, devices, and countries – which is a fantastic choice and advantage for larger-scale enterprise solutions. 

Now that we’ve established the fundamental differences between the systems, the question remains: Which ERP is best for a rapidly growing food and beverage business? 

What are the benefits of on-premise ERP? 

While it can be tempting to immediately scale up to a cloud solution for your food manufacturing software, it’s important to acknowledge and evaluate the benefits of an on-premise system. No two food manufacturing software options are the same; and smaller businesses may already have some sort of on-premise or manual system in place that you can leverage until your next stage of business growth. 

Benefits of on-premise ERP include: 

  • Lack of vendor reliance: While having a third-party vendor can be helpful in streamlining your operational management strategy, it can also be helpful to manage internally through your on-premise food ERP. Everything, from security to backups, will be done in house, lessening your risk of a breach. 
  • Enhanced security: Cloud has a variety of failsafes in place to maintain the security and integrity of your data. However, breaches happen – and it’s important to plan in advance to mitigate your risk. Manual systems are far less prone to this type of risk, as it’s nearly impossible to penetrate without being onsite. 

While these are compelling points for an onsite ERP, there are certain considerations to make as well. These include: 

  • Self-service: When you choose a manual system, you will be responsible for all updates and data management tasks associated with your setup. This can be costly and require expertise that you may not have at this evolution of business. 
  • Convenience: If you rapidly grow and scale, you may need to put in extra time to create a larger, more extensive ERP solution for multiple locations and devices. This is far easier to allocate for with a cloud ERP, and can provide more consistent access and service from anywhere in the world. 
  • Costs: Updates, security, and service can all bring higher overall costs than a remote system, largely due to the expertise needed to manage it. Many opt for cloud systems due to the lessened overall cost load they’ll have to bear. 

What are the benefits of a cloud ERP? 

Choosing a cloud ERP for your food manufacturing software of choice can offer you near-boundless opportunities for expansion and refinement. It’s faster, more reliable, and more accessible, providing your team with the resources they need to do their jobs well. Additional benefits of cloud ERP include: 

  • Scalability: Due to the flexible framework and accessibility of the tool and relevant building experts, cloud ERP is ideal for those who are looking to scale quickly.
  • Deployment: Deployment with the cloud is significantly easier than with an on-premise system. Plus, you’ll be able to connect more quickly to valuable assistance and support tools than you otherwise would with a service alternative. 
  • Accessibility: With the cloud, you’re able to access from just about anywhere in the world. As you expand, you’ll find this feature to be particularly helpful – facilitating virtual access, reporting, and management from anywhere you happen to be. 
  • Optimization: Cloud systems can be more easily optimized and personalized with unique integrations, automation, and other e-tools. 

Food management software users: Finding the right food ERP for your needs

If you’re considering investing in food management software for your food and beverage business, we recommend doing your research to ensure that you walk away satisfied. In your search, we recommend that you consider Inecta – the industry leader for over 20+ years and counting. 

The team at Inecta is personally committed to your success. We are a Microsoft Gold Partner with over 20+ years in the food ERP space, we’re here to help you walk away with the best possible solution for your production software needs. For more information and to get started today, please visit our website. We look forward to serving you! 

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