6 Excuses For Not Implementing ERP (Debunked!)

shield-417828_640 As a small or mid-sized manufacturer, you probably have a lot on your plate. You might be feeling squeezed by larger competitors, or you could be struggling to maintain margins while keeping up your pledge to offer superior customer service. And with limited resources to take on new projects, it might seem like a good idea to avoid taking on new projects—especially one as sweeping as implementing a new ERP system.

But running a manufacturing company without ERP can cost you. Read on to hear the top excuses for not implementing ERP and why you don't want to get stuck making them!

Excuse #1: ERP is Too Expensive

Small manufacturers have to work against many obstacles, often including a smaller budget than other manufacturers. It may seem as though the choice to make a capital expendeture comes down to either new production equipment or implementing an ERP system.

Reality: ERP improves margins and profitablitiy.

An ERP system helps you plan better, and may improve productivity and manufacturing efficiency as much or more than new equipment by:

Eliminating material shortages that cause production delays
Improving production throughput
Eliminating production bottlenecks
Increasing on-time shipments
Lowering inventory

Excuse #2: Spreadsheets Are Just as Good

Spreadsheets are great tools, but they can’t take the place of an integrated ERP system that gives you more complete control over your manufacturing data.

Reality: Spreadsheets alone don't deliver the time-phased, netted material plan that is the core of effect inventory planning and supply chain management.

Replacing spreadsheets lets you eliminate:

Slow and error prone manual data entry and maintenance
Out of sync spreadsheets maintained by different people and departments

Excuse #3: The Team Is Too Busy

The team is busy keeping spreadsheets up to date and walking around the plant with clipboards trying to find materials.

Reality: Well executed ERP frees your team from time-sucking manual, repetitive and duplicate tasks.

ERP improves employee productivity and helps your business run more smoothly by:

Consolidating your data so you can make decisions off one version of the truth
Monitoring material movement so you always know where shop orders are

Excuse #4: ERP Lacks Flexibility

The best ERP vendors keep their systems up to date with business and regulatory changes, so you always know you’re running effectively. In truth, running your business with paper lists or spreadsheets is much more inflexible, in addition to being less effective.

The business processes are based on industry best practices, so they are efficient and effective. running your business with paper lists or spreadsheets is much more inflexible, in addition to being less effective.

Reality: Many ERP systems include tailoring capabilities to meet specific industry and company requirements.

Here's how MAX provides flexibility:

Customizable software and integrations to give you the specific functionality you need as you need it and the ability to add-on capabilities as your business grows
Customized ERP implementation plan to ensure your business processes and business software work together
Flexible deployment options

Here's how ERP itself makes your business more flexible:

Real time costing based on current stock
Sophisticated forecasting for better on-time shipping
Powerful lot, serial and warranty tracking so you can handle recalls instantly

Excuse #5: ERP Is Only for Big Companies

Big ERP is for big companies, but not all ERP is big ERP.

Reality: Some vendors tailor ERP for small and mid-sized companies.

A small manufacturer searching for the right ERP might start to feel like Goldilocks rifling through all the wrong options or maybe a shrunken Alice in Wonderland reaching for a key that's far too large. Not every system will be the right fit for every company. Smaller manufacturers who select an ERP system designed specifically for small to mid-sized companies ensure they have all necessary functionality without the overhead big ERP imposes.

Excuse #6: ERP Requires a Big IT Team

Many small companies have small or non-existent IT teams, and management may have concerns that ERP requires a large increase in headcount to run effectively.

Reality: ERP can be implemented and maintained even in companies that don't have any dedicated IT personnel on staff.

If you don't have IT personnel to dedicate to an ERP project, consider:

ERP systems designed for small and mid-sized companies that use standard, off the shelf technology that doesn't require daily IT interaction
ERP vendors with strong support offerings. Ask the vendor what the average response and resolution times are for support cases.
Consultants who specialize in ERP implementation and training so you can get up-and-running and self-sufficient as quickly as possible

In Conclusion...

If you find the right ERP solution that addresses your specific business needs, there should be no excuses not to get started with ERP. After all, most small and mid-sized companies stand to benefit from the efficiency and control that an ERP system can deliver.

Check These Resources for Your ERP Search: