When Is the Best Time to Change My ERP System?

In the manufacturing sector, an ERP system is essential for planning and operations. But if your business is growing, your ERP can drag it down by no longer being able to support business needs, by lacking flexibility, or by not being integrated with the most up-to-date technology. When symptoms of lagging emerge, you are forced to seek a new solution–whether that is an upgrade or maybe a transition to the latest ERP software.

The process of replacing an ERP system can be challenging. For many companies, it means starting from square one: from researching the latest ERP software to planning its implementation to restructuring the organization to fit the implementation plan, and so forth. All in all, it’s a big, costly commitment in terms of time, money, and the amount of disruption it brings to your enterprise.

So, when it comes to replacing your ERP system, are you making the right decision? Should you commit to a replacement? Before you decide, it’s a smart idea to look at the symptoms that provide clues that your ERP system is slowing down your business.

Signs of Low Performance in Your ERP

The biggest clues that your ERP system may be falling behind are:

  • Your business requirements have outgrown your ERP. New business processes and workflows or changed existing ones may slow or even break down your ERP. Another sign is if you’ve had to manage day-to-day operations by adding external systems or had to devise a workaround.
  • Your legacy ERP lacks real-time visibility into your manufacturing processes. If you can’t view and access data at every stage in your supply chain in real time, it’s time to replace your ERP.
  • Your old ERP causes data errors because it is incompatible with the latest technology you have. You’ve updated your manufacturing technology from your shop floor to your e-commerce platform to your employees’ mobile devices, but your ERP doesn’t harmonize with any of it and, as a consequence, throws data errors.
  • Your employees are overly reliant on 3rd-party software to get things done. If your ERP lags, your employees may be forced to resort to using 3rd-party software–even if it takes them extra time to install it.
  • Your ERP maintenance costs are rising. Older ERP systems require considerable maintenance and overhaul, costing your company time and money.
  • Your organization is losing its competitive edge due to your lagging ERP. To compete in the fierce manufacturing market, you need an ERP system that enables you to respond quickly to business demands and to retrieve the business data you need immediately.
  • Your products fail to meet compliance standards and critical benchmarks. There are serious repercussions if your ERP causes your  company to miss compliance deadlines or important industry benchmarks: penalties, cancellation of your manufacturing license, and loss of business and reputation.

If your ERP is showing any of these signs of decline, it’s most likely time to replace it. A great candidate for replacement of your ERP system is SAP Business One. For the implementation of SAP Business One solutions that work hard for your manufacturing enterprise, consider Consultare, an SAP Gold Channel Partner awarded with SAP Recognized Expertise in SAP Business One. To learn more about taking the next step, contact us today.