Just because a manufacturer has an ERP system in place, doesn't mean they're 100% happy with it. Over time, employees forget about some of the ERP functionality they have available or people leave and certain system knowledge leaves with them. Tight budgets mean employees don't always receive the proper training and systems often don't always get updated or swapped out as business needs change.
To get the most out of your ERP investment, your ERP system has to evolve with you. Read on for practical advice on how to know when it's time to replace or upgrade your ERP system.
When to Replace Your Current ERP System
The reason companies look for new ERP solutions usually boils down to:
- Lack of functionality
- Lack of support
- Lack of mobility
http://www.b2bnn.com/2015/01/4-signs-time-replace-erp-system/
In some cases, these concerns may be absolutely correct and the company should start a search for a new ERP system. But before embarking on that journey, it's probably best to take a step back and do a little digging.
It's no secret that finding and replacing an ERP system is an extremely costly and risky endeavor. ERP systems are the heart of a manufacturing company, and replacing a functioning system is like having a heart transplant; it may be necessary, but it won’t be pleasant. So to be absolutely sure you're making the right decision to replace your current system, and before undertaking the risks of replacement, you might want to spend some time with your existing ERP vendor to learn about your current solution's capabilities.
Investing in a few days of consulting time to learn better ways to accomplish tasks or how to use new features may be a safer and more cost-effective solution to your business problems. Working with the existing vendor is like doing due diligence before an acquisition. The research may keep you from making a costly mistake, or it may convince you to plunge into a new adventure. But either way, at the end of the process you'll feel more comfortable that you're making the right decision— whether that's replacing your existing ERP system or sticking with it.
When to Keep Your Current ERP System
https://www.roberthalf.com/management-resources/blog/3-signs-its-time-for-an-erp-upgrade
The search for a new ERP system can quickly become an expensive and time-consuming process. Replacing your current solution all together means throwing away the investment you've already made, additional time and money to find a new solution, and then more time and money to actually implement that new system, train employees and document new procedures.
Maybe the decision shouldn’t be to replace your existing ERP system. Maybe the right answer is to use the available functionality you already have at your fingertips more effectively. For example, companies frequently find that they need to communicate faster with suppliers to meet customer delivery pressures. While one solution to this issue might be to find a new ERP system that provides better visibility, it could also just as well be to add EDI or a web-based supplier collaboration tool to your existing system if one is available from your current ERP vendor.
Sometimes companies implement ERP and then they never upgrade it (see 'How to Justify Upgrading Your ERP System'). This could be because of extensive customization that makes upgrading complex, or it could simply be due to other priorities. In any case, at some point the company realizes that the hardware is outdated or a crucial piece of technology is no longer supported. Because the ERP software version in place is old, the company or the users feel that the ERP system is behind the times. That's not necessarily always the case. It could just be that the company has been missing out on important new features that are part of regular product updates.
If you think your ERP system is lacking certain features and your vendor is not keeping up with market advances, be sure to check with your vendor to be sure that you're using their most recent software version before making the final call to look elsewhere for an ERP solution.
To continue to see a return on your ERP investment, your current system needs to support your requirements even as those requirements change over time. If you already have ERP, ask yourself if your system has grown with you. If you're thinking about making an ERP investment, evaluating your vendor based on their ability to grow with you over a period of several years is one way to ensure return on your investment. Before you decide to change course with your ERP system, it's a good idea to calculate ROI.
