A manufacturing company’s enterprise resource planning system serves as its backbone, streamlining processes such as mobile warehouse inventory management and keeping warehouses operating smoothly and efficiently.
Yet decision-makers sometimes find their ERP system is holding them back. While not every setback warrants the implementation of a new system, there are times when doing so could be the best solution.
Despite the multiple training hours, initial missteps and upfront costs that often accompany a new ERP selection, it’s quite possible initiating such a change could shake things up in the best possible way, streamlining production further and providing a more cost-efficient solution for your company.
Here are four factors to consider when facing a potential ERP change:
An ERP change is worth the risk when your current system:
- Is unreliable: If you and your employees find your company’s current ERP system to be lacking vital functionality or performing slower than it should be, it might be time to consider an upgrade.
- Isn’t being used by your employees: Are your employees using spreadsheets instead of your ERP system? Take that as a big red flag. It’s quite possible the user interface of your current system is counterintuitive for employees and supervisors who need access to real-time information and analytics. As stated in a report published in the Asian Academy of Management Journal, “employees … often use spreadsheet applications as an alternative to replacing missing functions in ERP systems, but this leads to large amounts of manual work, which is time consuming, productivity impairing, and the creation of errors.”
- Doesn’t meet your present-day needs: If your ERP system is lacking essential industry-specific functions or is unable to meet your company’s current needs, it certainly won’t be able meet many needs that arise in the future Ultimately, as Manufacturing Business Technology magazine pointed out, utilizing an ERP system that can’t keep up with market technology will limit your company’s potential for growth.
- Is costing you more than it’s worth: If your system comes with a bevy of maintenance costs, including but not limited to those associated with outdated hardware or software, you should take a closer look at your financial reports and decide if it’s time to move on. Additionally, a slower system can cause you to lose money in a roundabout way – perhaps through the loss of business from customers who aren’t satisfied with your company’s level of speed or service.
When it comes down to it, your ERP system should be an enabler; it should streamline work – not make it more difficult for you or your employees to complete. Though switching ERP systems can be somewhat unsettling at first, you also shouldn’t ignore the benefits of a new selection or downplay the hassle your current system might be causing.
Companies interested in upgrading or implementing an ERP system can click to download the Warehouse Mobile Data Dynamics NAV Module Data Sheet.