Whether you operate in distribution or manufacturing, an Enterprise Resource Planning (ERP) system can provide effective management of your operational processes.
It is essential to conduct a business process review regularly to determine if your ERP solution is still adequate for your company’s needs. Here are eight key signs that indicate it is time to make a move to a new system.
Vendor does not support the system anymore
Using an ERP system that no longer has the developers support due to it being a legacy product put businesses at serious risk. Prolonged downtime caused by unsupported systems can hamper efforts to compete with other enterprises that have embraced new technology. Outdated technology can also have data security implications.
Your enterprise has outgrown it
Outgrowing an existing ERP system is clear evidence that a business is making progress. Indicators of this expansion can range from scalability issues to a lack of newly required functionality. Investing in a more advanced ERP solution can add momentum to business expansion, unlocking new opportunities and ensuring it is not the internal business system(s) that’s preventing further growth.
The number of processes operating outside your ERP system
Another sign that your ERP software is past its sell-by date is when temporary fixes or processes exist beyond the boundaries of your system due to the lack of functionality. Although these processes were designed to compensate for your old ERP system's shortcomings, these solutions can lack security, visibility and present a risk due to the disparate data sources.
Limits on functionality
ERP systems that no longer meet operational requirements are another indicator and one that can harm a business. Asking developers to make major customisations continuously or buying additional software to be used in conjunction, is not a practical approach for any company when new systems with enhanced functionality are available.
When ERP upgrade costs outweigh those of adopting a new system
Established manufacturing and distribution firms will often have a homegrown ERP system that has been customised over many years to suit their changing processes. Such legacy systems can require far more investment to maintain and manage, compared with off-the-shelf editions. While all ERPs require customisation or configurations, it is far more cost-efficient adapting a modern ERP than an antiquated system.
Failure to gain business insight
Among its many uses, one of the reasons for ERP software adoption is to improve business insight. When an existing ERP can no longer provide simple, swift, and satisfactory reporting and data is spread across different sources, it has outlived its usefulness. Without a clear picture of the operations, decisions are harder to make, and firms can find it harder to compete with others in the industry.
If you are unable to upgrade your current ERP solution to the latest version due to it being a legacy system or because all the customisations, it may be a sign to see what else is on the market. Functionalities within ERP are always evolving, so options that previously did not have the features you needed, may have them now.
WinMan provides enterprises operating in distribution and manufacturing industries with fully integrated ERP solutions that are easy to use. Contact us today for advice on updating your ERP software.