According to the 2024 Trend Report by Aptean, our trusted partner for food businesses using Business Central, companies in the food industry that use a specialized Food ERP achieve, on average, 1.9 percentage points higher revenue growth than those using a generic ERP. But does that automatically mean that any ERP designed for the food industry is a future-proof choice?
The same research shows that companies that have migrated their ERP to the cloud achieve, on average, an additional 1.6 percentage points of annual revenue growth compared to companies that stick with on-premise systems. And revenue growth is just one of the benefits, outdated ERP systems pose risks that can hold companies back, while modern cloud solutions provide scalability, flexibility, and innovation.
6 major risks of an outdated on-premise ERP
Are you still working with an outdated ERP solution? Then you are likely facing these challenges:
- Cybersecurity risks: Older systems, such as Dynamics AX, no longer receive security updates. This makes them a target for cybercriminals who exploit vulnerabilities to steal data or hold systems hostage.
- Difficult regulatory compliance: The food industry is increasingly regulated. Whether it’s food safety or GDPR, outdated software doesn’t guarantee compliance with the latest legislation.
- Data loss and downtime: On-premise systems lack the advanced backup and recovery capabilities of cloud solutions. This increases the risk of data loss and operational downtime.
- Limited or no support: Many older ERPs, like Dynamics NAV 2013, are no longer actively supported. After 2028, even minimal support will disappear, leaving companies stuck with a system without updates or help with issues.
- Outdated functionality: Old software stands still. Innovations and new features are mainly developed for modern, cloud-based ERP systems. Clinging to the past means less efficiency and competitiveness.
- High operational costs: On-premise ERPs require physical servers, energy, maintenance, and an IT team to keep everything running. These are expenses you can easily avoid by moving to the cloud.
Why switch to a cloud-based ERP?
With a modern cloud-based ERP solution, such as
Microsoft Dynamics 365 Finance & Supply Chain Management or Business Central in combination with Aptean, you benefit from lower costs, since you don’t need to invest in expensive servers or IT maintenance—the cloud provider takes care of everything for you. In addition, you’re always up-to-date with the latest features and security updates from Microsoft and Aptean, with no need for manual updates. Wherever you are at the office, on the production floor, or on the go, you have access to your ERP anytime and anywhere, as long as you have an internet connection.
Microsoft’s cloud infrastructure also offers advanced security and automatic backups, ensuring your data is always protected. And thanks to the scalability of a cloud ERP, you can easily adjust your licenses and storage, allowing you to grow flexibly or scale up temporarily when needed.
Ready to make the switch?
The future of the food industry is in the cloud. With a modern, cloud-based ERP like Microsoft Dynamics 365 Finance & Supply Chain Management or Business Central in combination with Aptean, you’ll benefit from greater flexibility, lower costs, strong security, and automatic updates—all without worrying about outdated software.
Want to know which solution best fits your business needs? Try our
ERP simulator or contact us for personal advice.