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Factors to consider when replacing your ERP
Factors to consider when replacing your ERP

Managing growth is one of the biggest challenges manufacturers face today. This is true when it comes to having the best erp for manufacturing industry to manage the business requirements of today, as well as to support the growth of the company.

Customizing the software beyond its intended use inevitably leads to the creation of temporary solutions, or ways to move forward without actually solving the problem. solutions can also inhibit growth, as they often do not scale to really support the growth of the company.

According to a new study, solutions not only make it difficult to make informed decisions, but also hinder the ability to improve technology and performance.

If your current ERP system is not compatible with the requirements of your industry or is not scalable to support your growth, replacing it must be considered in the strategic business plan. When considering whether or not it is appropriate to update the ERP, it is essential to revise the selection criteria to find the system that suits your needs now and within a few years.

Some of the critical factors for selecting an ERP are:

Functionality and ease of use

The two main selection criteria are ease of use and functionality. Your best ERP system for manufacturing should take advantage of the latest technology while providing easy user experience. An easy-to-use solution ensures that employees actually use the system, which adds great value to the company. If the system is not easy to use, users will resist using it, creating temporary solutions and limiting the value for the company. A solution that has the functionality to address current and future business requirements will ensure that the company operates efficiently, maintains process standards and supports the future.

The company must thoroughly examine its business processes, as well as the way in which employees do their work. You should carefully document those workflows that provide a clear competitive advantage, be aware of the works that occur on a business day and review all areas that will be affected by the project.

But the functionality must go beyond a list of features that "must have". High-performance manufacturers are 46% more likely to ensure that their ERPs are aligned with their business objectives. The objectives and achievements are far-reaching and will lay the foundations to transform the company, increase productivity and profitability.

Support

The average life of a manufacturing erp is 7 to 10 years, so it is intended to have a beneficial long-term relationship. Support must come from both the provider community and the user community.

It should look beyond the implementation process, to the commitment of the provider for training and continuous improvement. Aspects like if you offer web seminars, workshops or other events where you can get more information on how to best use the solution are key. In addition, you must consider the functionality that may be needed in six months, one year and five years and assign expectations to the development of the product

The specific experience of the industry should be another consideration. The ERP provider must be able to configure the new solution to meet their needs, as well as offer best practices.

Likewise, the user community can be a great source of support. Other users with their experience can provide a lot of knowledge and tips to get even more information from the system. The user community should also be able to offer innovation to guide suppliers about the capabilities they should consider for future versions.

Total cost of ownership

While cost is an important consideration, many high-performing organizations recognize that it should not be the main driver. After all, any savings will be eliminated quickly if the solution does not address the key business requirements to achieve the expected benefits.

In addition, when considering license fees and implementation costs, the cost of the necessary customizations and ongoing maintenance must be evaluated.

Continuous success

Replacing an inherited system can be a daunting project, but the investment is worth it. The ERP represents the backbone for many manufacturers and is vital to the success of the company.

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