Client Server or Cloud Hosted – What’s Better for Your ERP?

Cloud Vs. Client-Server ERP for Small Businesses

Small business ERP systems are available either as client-server or cloud-hosted systems. Each one has many benefits, and luckily OnSite is is available in both options. Find out if a cloud vs. client-server ERP is better for your small business.

Client-Server Advantages

ERP software solutions for small businesses that you host on a client-server are ideal if your business already has a strong IT infrastructure in place, and the resources to support and administer it.

Having your system and all of your electronic files on-site can be useful because everything is in one place. It’s more secure than an Internet-based solution because it’s harder to steal electronic information stored in a desktop system — the main way to steal offline information would be the difficult process of stealing the physical hardware. In contrast, anything connected to the Internet is at risk from hacking, although with advancing technology and more and more local computer-to-cloud connections, the difference in security between the two is diminishing. Many business owners also just like the fact that their important company information is consolidated and in-house.

Hosting your business software in-house also makes troubleshooting simple (assuming you have a competent IT department), since you can do it yourself instead of waiting for the host to do so at a remote location should problems occur. The costs of keeping your ERP on a server are also lower in the long run since you pay a single upfront cost and then low monthly or yearly costs afterward. Cloud-hosted services typically have higher monthly costs that continue as long as you use the business software.

The other option, a cloud-hosted ERP software for a small business, is equally popular and has many benefits. Here are some of the main benefits associated with cloud-hosted systems:

Cloud Hosted Advantages

Cloud ComputingA cloud-hosted ERP software for a small business is hosted offsite and is accessible from any computer through the Internet. This allows employees to use your system from any connected device, instead of just those computers in your office on which you’ve installed the decorated apparel ERP business software.

These small business ERP systems also take up far less space, since you don’t need an extensive IT infrastructure to host the entire system in-house, and they cost less upfront since there is a monthly fee instead of a large one-time payment and smaller yearly installments. Implementation can also be more streamlined, as the cloud-hosted solution is set up quickly by the pros at the ERP service provider and not a long installation process handled by your own IT department.

Cloud-hosted ERP systems are updated more regularly since they don’t require physical installation onsite. They also lower your payroll costs, since you don’t need such a large in-house IT department to support your entire business infrastructure, not to mention saving you the expensive headaches of maintaining and upgrading your own server and software. Your company information and files are also safe if something happens to your hardware, and even theft of your hardware doesn’t equate to loss of your business information.

As for security, cloud servers are more prone to hacking than desktop systems, but usually have a level of redundancy. Therefore, if someone does hack in, or if the server fails, the cloud system usually has backups and secondary servers ready to kick in to replace it. If you handle your ERP system entirely in-house, however, and the server fails, most companies do not have systems in place to deal with it, since extra servers cost much time and money.

Conclusion

The difference between the cloud vs. client-server ERP for small businesses is like the difference between renting and owning a car. You have all the benefits of transportation when you rent, but you don’t have to take care of maintenance. The trade-off is the higher monthly and overall cost in the long run. The decision between which is best for you depends on the nature of your business.

Whichever type of solution you choose, the best small business ERP systems are those that are comprehensive and can handle all your essential business tasks. Not only that, good ERP systems should include basic tools such as a calendar, backup, and recovery system (by far the most important part of any piece of software), a CRM (Customer Relationship Management) system for leads, and web integration (particularly e-Commerce and email marketing integration). We at Shopworks developed OnSite and the rest of the Shopworks product lineup to handle everything your business needs to work.

For requirements for our client-side system, see our Hardware and Software Requirements page. For details on our cloud-hosted system, see our Documents page. For an overview of OnSite, see our OnSite page.

Cloud ERP: The Top 4 Questions You Should Ask

The Advantages of Cloud ERP Software

More and more small businesses are moving into cloud ERP systems (such as ShopWork’s Cloud Hosted OnSite product). The advantages are many: streamlined implementation, lower cost of ownership, and saving yourself the expensive headaches of maintaining and upgrading your own server and software. It mainly comes down to the question of the ease, security, and accessibility of the cloud versus the risks of cloud-based software.

However, when considering a Cloud ERP system (or any ERP system, for that matter) you’ll want to ask yourself, your team, potential software vendors, and consultants some detailed questions to see if the new system will really meet your needs. We’ve published extensive articles on how to select an ERP System as well as best practices for implementing them. Here, we’ll condense it down to four focused questions for cloud-based ERP software:

1. Are you running the software or is it running you?

Any new software will need some learning and adaptation from both management and production. But be wary of solutions that don’t match your current working business processes – you should dictate how your company runs, not the assumptions of some techie. Find a solution that helps you do what you do well and improve it, not one that will make you turn your business processes inside out to match it. If you can, try to find a vendor that has experience in your industry – and has helped other industry businesses.

2. Have you discussed requirements with your team first, before looking for a solution?

Don’t just sit down in front of a whiteboard with a consultant to brainstorm requirements. All you’ll end up with is a long, expensive, often overkill wish list that might overlook a basic need. Make it a point to sit down with your team to carefully scope precisely what you need your new ERP system to do and what strategic problems it needs to solve. Many software vendors offer helpful needs assessment and solutions plans, but make sure it’s your plan, not the vendor’s.

3. Just how configurable is it?

Nail down exactly how configurable an ERP solution is. Make sure that adapting the solution meets all or 90% of your requirements – an “only 50%-70% can be met” solution is a red flag. Just as important, make sure exactly what “configurable” means. Does it mean you can shuffle around report fields but not adapt the software to your workflow or unique job requirements? Or does it mean a massive commitment to ongoing training and endless implementation cycles? Strike the right balance here because configuring your ERP system to your unique business processes is the most important part of the solution. This is also why question 2 is so important – you need to make sure that it can be configured to fit the goals outlined by your team.

4. Is this made for product decorators?

This relates closely to question No. 1. An ERP system made for just generic business requirements can leave out a lot of needed functionality – resulting in, at best, expensive, ongoing customization and training investments. Better to start with a more complete and industry-specific solution.

Conclusion

A Cloud ERP system can give much to product decorators and decorated apparel sellers, but the questions above will gain those benefits faster, save money, and keep your team from pulling their hair out trying to actually get value out of it. Learn more about the benefits of cloud-hosted software.

Shopworks OnSite was made to fit product decorator business processes, is very flexible, and is made by people with years of experience in the industry. Find out what OnSite can do for you!

What is OnSite?

OnSite is a completely integrated business management tool designed specifically for screen printers, embroiderers, promotional product distributors, award manufacturers and digital printers. We designed OnSite after owning our own shop for 10 years. This knowledge and experience with the industry has gone into all of the ShopWorks products. OnSite software manages every aspect of your business …not just accounting. All the functions and departments of your company are integrated into a single product. OnSite is a multi-user database that runs over your existing network. Because it is a client-server application, it is fast and allows multiple users to use your system simultaneously. All information is real-time…changes made by one employee are immediately seen by others.

Why OnSite?

onsite logoWhat is the one tool every shop needs to handle every step of the way between taking an order, producing it on the shop floor, shipping it and getting that order invoiced and paid? A shop operating system (also known as an ERP or Enterprise Resource Planning system).

Most companies in the decorated apparel industry use a shop operating system. As most shops are too small to hire a full-time programmer to meet their system needs, using off-the-shelf business management technology is the way to go.

So which business software solution is for you? We’ve published a few articles on choosing a small business ERP system, as well as how to implement it. In this article, let’s explore why OnSite might be just the solution for you:

What’s Ahead for OnSite

OnSite manager software continues to evolve with at least one major upgrade every year. OnSite’s last major release in March 2015, which includes improved customer proofing, better touchscreen interfaces for the production floor and more accounting features. With over 750 customers actively using our product, most of our new features are a direct result of user suggestions.

The “next big thing” for later in 2015 will be ManageOrders.com, which is a “customer-facing” web portal. An end-user (the shop’s customer) can check on order status, see their designs, make payments, etc. Essentially, this will help streamline our customer’s operations because they can automate a lot of their customer service.

Tablet and Phone Support

Shopwork’s core product, OnSite, is accessible from a tablet using an RDP connection. It works great speed-wise and visually. Screen “real estate” on a phone makes it not as practical because everything is so small, but this will change as phone screens are getting bigger. Both of Shopwork’s web products, ProofStuff and ManageOrders, sense the device you are using and adjust the screen size (“Responsive” in web programming jargon).

Linking to Web Orders and Other Cloud-based Information

The OnSite ERP can take orders from any other website or program its built-in proprietary EDP interface. This is not a new feature, though; we’ve had it for years. Essentially, it allows a shop to use whatever product they want as an order-taking “front end,” and that order can then be processed and tracked on their main system.

OnSite Software Customizations

OnSite is very customizable for each company that uses it because there are so many types of companies and embellishments in our industry. For example, shop managers can set up OnSite to handle contract work (customer brings in the goods), subcontract work (sending out your production to someone else but buying the goods from another vendor), traditional production (buying the goods and then embellishing them) and traditional promotional product (buying both the finished good and the embellishment from a single vendor).

Users can customize icons used for orders, and what they name the machines, different departments, different “design types” — almost all the core system is customizable in this fashion. We have an online “repository” for Shopwork’s customers called ShopWorksCentral.com. It’s a website for three primary purposes:

  • First, customers can reach and watch videos online for training.
  • Second, Customers can reach documents, recorded webinars and other training materials when we release them.
  • Third, when Shopworks release new versions, we post them here so customers can learn about the new features and download the upgrade.

What Challenges OnSite Can Solve

The biggest challenge that all of our customers have is that before buying our product, they are using four to six different systems or pieces of software to run their business. Typically they use forms for order entry, spreadsheets for purchasing, Excel for job quotes, magnet board or Excel for production scheduling, and QuickBooks or something else for accounting. This is inefficient and leads to lot of errors on orders, both of which limit how much their company can grow. Our challenge when switching a customer over to OnSite is for them to embrace the “integration” concept.

With OnSite, they enter information once and it travels through the company. It is what they need to grow, but they need to re-do procedures, employee training and sometimes look differently at the way they process orders. It is a lot of change management and we are honest with customers about the process and try to “shepherd” them through it.

One of the many advantages of an integrated system is that pricing, stock, and scheduling information is always right there and accessible to salespersons, production managers, shippers, and management. A sales rep can give a price upfront, secure a deposit

How OnSite Can Help Your Shop Become More Competitive

There are three main ways OnSite can help your shop become more competitive. The first is to cut the costs dramatically to process a sales order. Less labor per order means they can move more volume without increasing costs linearly.

The second is fewer errors on producing orders. OnSite keeps track of everything related to a sales order and all this information is available with the click of a mouse or swipe of a finger. Employees are less prone to make mistakes when paperwork is the same every time and not hand-written.

Lastly, Shopworks is a better end-user experience. Customers who have our software produce orders consistently and on-time and their customers appreciate that consistency.

Customer Access to Billing Information, Jobs on the Schedule or an Image Library

Customers can’t access Billing Information, Jobs on the Schedule or an Image Library in our current system but they will later in 2015 when we release our ManageOrders.com product.

What Sets Shopworks Apart

Shopworks culturally is from the industry and we understand it. That understanding translates to the software and even when you talk to our support staff. We understand very intimately what our customers do.

The platform we develop on is rapid development — three to 10 times faster than other platforms. This means we can deliver upgrades faster and cheaper than our competition, which is important when you talk about a changing industry like ours.

We are 100% committed to “integration” in our software. A lot of software companies think of integration more as a flat file export because with OnSite all the modules from marketing through accounting are all connected real-time because everything is in a single integrated package.

Where the Industry’s Headed

A lot of growth! The demand for embellished products will continue to increase and our industry will be a direct beneficiary of that. Technology will continue to evolve on the production floor as inventors continue to come up with new and interesting ways to get logos on things. This is the one aspect of our business that really makes it fun — the creative side. This is probably why we are all drawn to it.

The Biggest Daily Hurdle Shops Face – and How OnSite Helps

The biggest challenge is for the small-business owner to commit themselves to being exactly that: a business owner. This is especially true if they want to grow their business. A lot of people start a small business as an escape from the “regular” work world and they are doing themselves a disservice in the long run when not committing to the process. If you are going to own a business, embrace being an owner. Things you never thought of, like “systems,” “procedures” and “management,” are the key to your growth. Our manager software helps with this challenge by giving them a starting point for their company infrastructure. This is not all just for “big business;” these concepts are important for small operations as well. Our software is very configurable for different business types, but once it’s set up correctly, it will work whether you do $100,000, in sales volume per year up to $50 million. We have many customers across that sales volume spectrum and they all use the same software.

A Day in the Life of OnSite

OnSite’s production scheduling has a philosophy behind it: it’s almost impossible for a computer to handle 100% of scheduling production because there are so many variables. For example, in screen printing, not only are you looking for an open spot on a schedule, but you have to consider the number of heads, screen size, flash units available and maybe even who is the crew running a particular press to see if it is right for a job.

OnSite basically works this way. You set up all your equipment in OnSite and your production teams. Equipment has properties associated with them, including production rate. We recommend that all new customers set up a “scheduling machine” for each department as a best practice. For example, they would have a press setup in OnSite called “Schedule Screenprint” that would have average production rates associated with it. When a new job comes in it will automatically be scheduled for the “Scheduling Machine” based on the dates required by the person entering the sales order. You can set up the system to back this off by a few days if you want, avoid weekends, etc.

Procedurally, the production manager on a daily basis sees the jobs that have come in on the “Scheduling Machine” and moves them to a real machine based on their schedule. The benefit is that the manager can check every order before scheduling to make sure everything is there. For example, if the salesperson left off a key piece of information, the manager would be able to put the order on hold and send a message to the salesperson — all from within OnSite. Everything is documented on the order. This is all procedural and varies exactly in how it’s implemented from company to company.

If you’re interested in OnSite as a potential business software solution, discover more on our OnSite page and schedule a demo.